Managerial Economics I
Managerial economics is the application of microeconomic theory and methodology to problems faced by decision makers in the private, public and not-for-profit sector. The course provides the essential tools to analyse the strategic behaviour of firms in an uncertain economic environment defined in terms of market structure, customers behaviour, and regulation. These tools assist managers in efficiency allocating scarce resources, planning corporate strategy, and executing effective tactics.
The course is made of lectures and tutorials on exercises. Lectures are based on the main textbook. Students are expected to go through the relevant readings before coming to class and are advised to use the textbook. Supporting slides including the structure and the basic concepts of each lecture are available on the course website (http://www.icorsi.ch). These are not substitutes for notes taken by the students during the lecture. Some exercises are discussed during classes (tutorial sessions). Tutorials aim at practicing exercises and provide the necessary tools to prepare 3 assignments which will be handed individually in due time.
1. Introduction and goals of the firm [ch. 1]
2. Fundamental economic concepts [ch. 2]
3. Demand Analysis [ch. 3]
4. Production Economics [ch. 7]
5. Costs Analysis [ch. 8]
6. Prices, Output and Strategy under pure and monopolistic competition [ch. 10]
7. Price and output determination: monopoly and dominant firms [ch. 11]
8. Price and output determination: oligopoly [ch. 12]
9. Best-practice tactics: game theory [ch 13]
10. Pricing techniques and analysis [ch. 14]
The evaluation includes a final exam which accounts for 80% of the final mark, and 4 assignments which will be handed individually in due time. Each assignment accounts for 5% of the final grade. The evaluation of the course is composed of the grade for the written exam at the end of the semester and the 4 assignments. Assignments account for 20% of the final grade (each handed assignment will get 5%). The final exam is made of multiple-choice questions on both theoretical aspects and numerical exercises
McGuigan, Moyer, Harris, Managerial Economics, Thomson Southwestern, 14th edition, 2017.