This course illustrates how economic analysis can guide the decision problems faced by managers. To fulfill this objective, we review what every intermediate-level student of microeconomics must know, while stressing, from a methodological point of view, on game theory. This provides a natural link between strategic management and economics. After a discussion of methodology and of normative analysis (are policies practiced by economic agents in the public interest?), we turn to the construction of economic models for the solution of business problems, with a focus on practical issues: demand, cost analysis, pricing (including price discrimination and advertising), the firm’s organization and its boundaries. We also examine the different forms of market structure, the role of state intervention and the strategic interaction with competitors. Further topics such as compensation policy, the market for health care, entry and exit decisions are covered in class through students’ presentations. On the international side, again through both lectures and classes, we study topics such as the foundations of international macroeconomics, international trade and increasing returns to scale, outsourcing, globalization and income inequality. At the end of this course the student should be able to "think like an economist", which is to demonstrate in the analysis of case studies.
- Teacher: Patrick Coggi