Syllabus Economics
Content
EEC5001 - Managerial Economics Syllabus
Fall 2015
Instructor Information
Instructor
Contact Info
Online Lectures & Office Hours
Emin Köksal, Asst.Prof.
[email protected]
Tuesday, 18:00-20:00
EminKoksal.com
@EminKoksal
Tuesday, 13:30-15:30
General Information
Description
Managerial Economics is an advanced course that aims to apply economic analysis to a wide array of business problems. The
course offers a balanced coverage of traditional and modern microeconomic tools. It begins by teaching the practical utility
of basic economic tools such as present value analysis, supply & demand, the basic models of perfect competition, monopoly,
and monopolistic competition. It also offers real-world examples which includes modern topics such as oligopoly, multistage &
repeated games, vertical & horizontal integration, networks, predatory pricing, principal–agent problems, adverse selection,
auctions, limit pricing, and a host of other pricing strategies for firms enjoying market power. The rest of the course is
reserved for the analysis of possible effects of macroeconomic policies on business activities.
Expectations and Goals
After completing this class you should be able to:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Explain the role of profits in a market economy
Use marginal analysis to determine the optimal level of a managerial control variable
Make investment decisions that increase firm value
Set optimal prices and price discriminate
Predict industry-level changes using demand/supply analysis
Develop long-run strategies to increase firm value
Use game theory to predict how your actions influence those of others
Make decisions in uncertain environments.
Solve the problems caused by moral hazard and adverse selection
Align individual incentives with the goals of the company
Manage relationships between upstream suppliers or downstream retailers
Identify sources of market failure
Read basic macroeconomic variables
Analyze and identify the possible effects of macroeconomic policies on business activities
Course Materials
Required Texts
The texts for the class that corresponds closely to the lectures are
•
•
Managerial Economics & Business Strategy, Michael BAYE & Jeffry T. PRINCE, McGraw-Hill, 8e, 2013.
Business Economics, Gregory MANKIW, Mark P.TAYLOR, & Andrew ASHWIN, Cengage, 2013.
Additional Materials
All course materials (slides, videos, articles, etc.) will be available on the course management system (itslearning.com).
Reading The Economist and BusinessWeek regularly keeps you up to date about the business news/analysis.
Page 1
Course Grading and Deliverables
The weightings for the grade of this class are:
•
•
•
Take-Home Exams covering discussed topics or supplied documents
Presentation
Final Exam covering all materials and class discussions
30%
20%
50%
Take-Home Exams
The take-home exams will be posted to your accounts on the course management system (itslearning.com). While I encourage
you to work together as you learn the material, you are expected to work alone on the take-home exams themselves. Please
submit your finished work no later than the due dates.
Presentation
The presentation is expected to be an analytical exhibition of a business problem or an experience which is closely related to
the topics of the course. The presentation style in TED Talks is strongly recommended.
Final Exam
The final exam will cover all of the material from the course, and class discussion. It will be ‘open-book’, which means that
you may bring in any reading materials or study aids that you choose, such as lecture notes, textbooks, and even handwritten
notes. But, you are not allowed to bring in any electronic devices, such as laptop computers, tablets, or mobile phones.
Course Schedule
Week
Topic
Reading
Week 1
The Fundamentals of Managerial Economics
BAYE & PRINCE, Ch.1
Week 2
Market Forces: Demand and Supply
BAYE & PRINCE, Ch.2
Week 3
Quantitative Demand Analysis and Consumer Behavior
BAYE & PRINCE, Ch.3, 4
Week 4
The Production Process, Costs, and The Organization of the Firm
BAYE & PRINCE, Ch.5, 6
Week 5
The Nature of Industry
BAYE & PRINCE, Ch.7
Week 6
Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets
BAYE & PRINCE, Ch.8
Week 7
Basic Oligopoly Models and Game Theory
BAYE & PRINCE, Ch.9, 10
Week 8
The Economics of Information
BAYE & PRINCE, Ch.12
Week 9
Advanced Topics in Business Strategy
BAYE & PRINCE, Ch.11, 13
Week 10
A Manager’s Guide to Government in the Marketplace
BAYE & PRINCE, Ch.14
Week 11
The Macroeconomic Environment
MANKIW et al. Ch.16
Week 12
Economic Fluctuations: Aggregate Demand and Aggregate Supply
MANKIW et al. Ch.17
Week 13
Inflation and Price Stability
MANKIW et al. Ch.19
Week 14
Fiscal, Monetary and Supply-Side Policy
MANKIW et al. Ch.20
Policy on Cheating and Plagiarism
Academic dishonesty in the form of cheating, lying, or plagiarizing will be punished to the fullest extent allowable by the
university.
Page 2
Fall 2015
Instructor Information
Instructor
Contact Info
Online Lectures & Office Hours
Emin Köksal, Asst.Prof.
[email protected]
Tuesday, 18:00-20:00
EminKoksal.com
@EminKoksal
Tuesday, 13:30-15:30
General Information
Description
Managerial Economics is an advanced course that aims to apply economic analysis to a wide array of business problems. The
course offers a balanced coverage of traditional and modern microeconomic tools. It begins by teaching the practical utility
of basic economic tools such as present value analysis, supply & demand, the basic models of perfect competition, monopoly,
and monopolistic competition. It also offers real-world examples which includes modern topics such as oligopoly, multistage &
repeated games, vertical & horizontal integration, networks, predatory pricing, principal–agent problems, adverse selection,
auctions, limit pricing, and a host of other pricing strategies for firms enjoying market power. The rest of the course is
reserved for the analysis of possible effects of macroeconomic policies on business activities.
Expectations and Goals
After completing this class you should be able to:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Explain the role of profits in a market economy
Use marginal analysis to determine the optimal level of a managerial control variable
Make investment decisions that increase firm value
Set optimal prices and price discriminate
Predict industry-level changes using demand/supply analysis
Develop long-run strategies to increase firm value
Use game theory to predict how your actions influence those of others
Make decisions in uncertain environments.
Solve the problems caused by moral hazard and adverse selection
Align individual incentives with the goals of the company
Manage relationships between upstream suppliers or downstream retailers
Identify sources of market failure
Read basic macroeconomic variables
Analyze and identify the possible effects of macroeconomic policies on business activities
Course Materials
Required Texts
The texts for the class that corresponds closely to the lectures are
•
•
Managerial Economics & Business Strategy, Michael BAYE & Jeffry T. PRINCE, McGraw-Hill, 8e, 2013.
Business Economics, Gregory MANKIW, Mark P.TAYLOR, & Andrew ASHWIN, Cengage, 2013.
Additional Materials
All course materials (slides, videos, articles, etc.) will be available on the course management system (itslearning.com).
Reading The Economist and BusinessWeek regularly keeps you up to date about the business news/analysis.
Page 1
Course Grading and Deliverables
The weightings for the grade of this class are:
•
•
•
Take-Home Exams covering discussed topics or supplied documents
Presentation
Final Exam covering all materials and class discussions
30%
20%
50%
Take-Home Exams
The take-home exams will be posted to your accounts on the course management system (itslearning.com). While I encourage
you to work together as you learn the material, you are expected to work alone on the take-home exams themselves. Please
submit your finished work no later than the due dates.
Presentation
The presentation is expected to be an analytical exhibition of a business problem or an experience which is closely related to
the topics of the course. The presentation style in TED Talks is strongly recommended.
Final Exam
The final exam will cover all of the material from the course, and class discussion. It will be ‘open-book’, which means that
you may bring in any reading materials or study aids that you choose, such as lecture notes, textbooks, and even handwritten
notes. But, you are not allowed to bring in any electronic devices, such as laptop computers, tablets, or mobile phones.
Course Schedule
Week
Topic
Reading
Week 1
The Fundamentals of Managerial Economics
BAYE & PRINCE, Ch.1
Week 2
Market Forces: Demand and Supply
BAYE & PRINCE, Ch.2
Week 3
Quantitative Demand Analysis and Consumer Behavior
BAYE & PRINCE, Ch.3, 4
Week 4
The Production Process, Costs, and The Organization of the Firm
BAYE & PRINCE, Ch.5, 6
Week 5
The Nature of Industry
BAYE & PRINCE, Ch.7
Week 6
Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets
BAYE & PRINCE, Ch.8
Week 7
Basic Oligopoly Models and Game Theory
BAYE & PRINCE, Ch.9, 10
Week 8
The Economics of Information
BAYE & PRINCE, Ch.12
Week 9
Advanced Topics in Business Strategy
BAYE & PRINCE, Ch.11, 13
Week 10
A Manager’s Guide to Government in the Marketplace
BAYE & PRINCE, Ch.14
Week 11
The Macroeconomic Environment
MANKIW et al. Ch.16
Week 12
Economic Fluctuations: Aggregate Demand and Aggregate Supply
MANKIW et al. Ch.17
Week 13
Inflation and Price Stability
MANKIW et al. Ch.19
Week 14
Fiscal, Monetary and Supply-Side Policy
MANKIW et al. Ch.20
Policy on Cheating and Plagiarism
Academic dishonesty in the form of cheating, lying, or plagiarizing will be punished to the fullest extent allowable by the
university.
Page 2
