Theory, Applications, and Cases
In today’s managerial world, it’s critical that students learn how to make strategic economic decisions.
The seventh edition of Managerial Economics is the most current text available, encouraging students to see beyond the equations and graphs to the general precepts, such as marginal analysis and backward induction. Its new content draws on dozens of contemporary case studies, inviting students to apply problem-solving skills and to reflect on real-world economic decisions.
The most experienced authors emphasize strategy throughout
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.
The most up-to-date case studies show how real-world business decisions are made
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.
The most relevant content delivers the knowledge students need to be successful managers
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.
A focus on real-world business decisions and the strategic problem-solving skills they require
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:
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- 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
Part I: The Need for a Guide
Part II: The Nature of Markets
2 Demand Theory
3 Consumer Behavior and Rational Choice
Part III: Production and Cost
4 Production Theory
5 The Analysis of Costs
Part IV: Market Structure
6 Perfect Competition
7 Monopoly and Monopolistic Competition
Part V: Sophisticated Market Pricing
8 The Managerial Use of Price Discrimination
9 Bundling and Intra-firm Pricing
Part VI: The Strategic World of Managers
11 Game Theory
Part VII: The Asymmetry of Managerial Life
13 Risk Analysis
14 Principle-Agent Issues and Managerial Compensation
15 Adverse Selection
16 Government-Business Relations and the Global Market
Appendix: Optimization Techniques