Managerial economics

This course aims to introduce students to the fundamental principles of managerial economics and provide them with an understanding of how economic concepts can be applied to real-world business decisions. The course includes basic economic concepts related to firm production, cost structures and objectives, as well as an in-dept analysis of firm behavior under competition and monopoly and the implication for societal welfare. Firms with market power can use the price instrument to pursue their objectives. Different forms of price discrimination, as well as bundling multiple goods into packages and the use of time dependent pricing schemes, are analyzed. An introduction to decision making in oligopoly markets is provided to gain a basic understanding of strategic competitive behavior. Firms act under incomplete knowledge of future events. As a consequence, firms must make decisions under uncertainty. The analyses of decision making by firms and individuals are extended to include uncertainty. Central concepts related to risk attitude, the consequences of risk-attitude for decision making, and strategies to avoid or eliminate risk, are studied. While the focus is on intuition and graphical explanations of microeconomic concepts and models, the course also contains mathematical analysis. The goal is to equip students with the tools and strategic thinking skills necessary for effective decision-making in a dynamic business environment.