Managerial economics looks at the economics of decisions facing and impinging upon managers, the central decision makers in firms.  This includes a discussion of the nature of the firm and looking at relationships between managers and owners and between managers and other employees.  Consideration will be given to the nature of decision-making in different market structures and how a manager is constrained by the market structure in which their firm operates.  We will discuss pricing strategies in different contexts and also look at some economics of information as it relates to managerial decision making.

Upon successful completion of the requirements for this course, students will be able to:
• Understand the roles of managers in firms
•  Understand the internal and external decisions to be made by managers
•  Design competition strategies, including pricing, product differentiation, research & development, and marketing,  according to the natures of products and the structures of the markets
• Design optimal incentive schemes, including salary, bonus, and stock options, for employees at different levels of the firm
• Conduct independent research to discover and solve problems facing managers in real world business by theoretical and statistical methods.

Assessment will be comprised of regular Problem Sets, a midterm examination and a final exam.

An introductory course in Microeconomics

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