W. Bruce Allen, Keith Weigelt, and Neil Doherty regularly teach the managerial economics course at the Wharton School of Business. The authors have drawn upon their extensive experience as teachers, advisors, and leaders in industry and government to integrate the most current coverage of business and public policy, risk management, pricing, and more into every chapter of Managerial Economics.

Drawing upon their extensive experience in industry and government, the authors include the most engaging and current case studies available. Identified as Strategy Session boxes throughout the text, these case studies show students how to apply strategic thinking to actual situations and project the outcomes of their management decisions.

Answering instructors’ call for contemporary, practical, and streamlined content that prepares students to make smart decisions in today’s dynamic business markets, Managerial Economics provides the best coverage of the foundational topics students need to know and the cutting-edge content instructors love to teach.

The Seventh Edition also includes extensive coverage of topics students are reading about in the news and that relate to the economic crisis—risk analysis, principle-agent issues, moral hazard, and adverse selection—as well as up-to-date chapters on game theory and auctions.

Numerous Problem Solved boxes in each chapter challenge students to fully understand and apply chapter concepts to real-world business decisions. Students who exercise their problem-solving skills with these features are prepared to tackle the end-of-chapter problems.

Examples of Problem Solved boxes in Chapter 13: Risk Analysis include:

• Pfizer’s risk analysis in deciding whether or not to release a new cholesterol drug
• Evaluating a potential investment in a new chemical plant
• TomCo decision to drill for oil in Blair West, Kansas