Theory, Applications, and Cases
Thoroughly updated to reflect the post-crisis, global, and digital economy.
Modernized for the 21st century, the Eighth Edition emphasizes strategic thinking by managers and includes over 50 new case studies on events from 2010 to 2012 that prepare students for today’s changing economy.
Reflective of today’s constantly evolving business environment
A wealth of updated case studies introduce students to today’s economy. New or updated case studies include the Roles of the Chief Innovation Officer; Water Shortage Problems in China; Apple, iPads, and Monopoly; and Netflix and Bundling/Unbundling. Revisions to the coverage of consumer theory, producer theory, market structure, and pricing, as well as chapters on game theory, auctions, risk analysis, principle–agent issues, and adverse selection are relevant to today’s business climate.
Introduces students to strategic thinking
The authors weave their experience as business strategists throughout the book, ensuring that students a tangible focus on strategic thinking.
An emphasis on problem solving
Managerial Economics has more solved problems than any competing text. These “Problem Solved” exercises relate directly to real-world business decisions and prepare students to tackle end of chapter and exam questions.
Table of Contents
Part 1: The Need for A Guide
Chapter 1: Introduction
Part 2: The Nature of Markets
Chapter 2: Demand Theory
Chapter 3: Consumer Behavior and Rational Choice
Chapter 4: Estimating Demand Functions
Part 3: Production and Cost
Chapter 5: Production Theory
Chapter 6: The Analysis Of Costs
Part 4: Market Structure and Simple Pricing Strategies
Chapter 7: Perfect Competition
Chapter 8: Monopoly and Monopolistic Competition
Part 5: Sophisticated Market Pricing
Chapter 9: Managerial Use of Price Discrimination
Chapter 10: Bundling and Intrafirm Pricing
Part 6: The Strategic World of Managers
Chapter 11: Oligopoly
Chapter 12: Game Theory
Chapter 13: Auctions
Part 7: Risk, Uncertainty, and Incentives
Chapter 14: Risk Analysis
Chapter 15: Principal–Agent Issues and Managerial Compensation
Chapter 16: Adverse Selection
Part 8: Government Action and Managerial Behavior
Chapter 17: Government and Business
Chapter 18: Optimization Techniques
Appendix A: Technological Change and Industrial Innovation
Appendix B: Business and Economic Forecasting
Appendix C: Discounting and Present Values
Appendix D: Answers to Select End-of-Chapter Problems
Appendix E: Tables