Министерство образования Республики Беларусь

УО «Белорусский государственный экономический университет»

План 
семинарских занятий 
по курсу

«Managerial economics»
(Управленческая экономика)

для студентов 1 курса МВА
дневной формы обучения

 

Topic 1: Introduction into Managerial Economics

Lesson 1.
1.1.	Introduction 
1.2.	Definition and relationships with other disciplines 
1.2.1.Relationship with economic theory 
1.2.2.Relationship with decision sciences 
1.2.3.Relationship with business functions
1.3.	Elements of managerial economics 
1.3.1.	Subject areas and relationships 
1.3.2.	Presentation of topics 
1.4.	 Methods 
1.4.1. Scientific theories 
1.4.2. Learning economics 

Topics of Essays and Case Studies
Elements of managerial economics
Import quotas on Japanese cars 
Equal prize money in tennis 

Literature
1. [101-105], 2. [5-55], 4 [3-47]

Topic 2:  The theory of the firm

Lesson 1 

1. The nature of the firm 
2. Economic organizations 
2.1. Transaction cost theory
2.2. Motivation theory 
2.3. Property rights theory 
3. The basic profit-maximizing model
3.1. Assumptions 
3.2. Limitations 
3.3. Usefulness 
4 The agency problem 
4.1. Contracts and bounded rationality
4.2. Hidden information
4.3. Hidden action 
4.4. Control measures 
4.5. Limitations of the agency model
Lesson 2

1. Measurement of profit 
1.1. Nature of measurement problems
1.2. Efficient markets hypothesis
1.3. Limitations of the EMH
2.  Risk and uncertainty
2.1. Attitudes to risk 
2.2. Risk and objectives 
2.3. Risk and the agency problem 
3.  Multiproduct strategies 
3.1. Product line profit maximization 
3.2. Product mix profit maximization

Topics of Essays and Case Studies
Case study 1: Corporate governance
Case study 2: Enron fail
The public sector and non-profit organizations

Literature:
2. [105-125], 5. [123-145], 7. [5-32]

Topic 3: Demand analysis 

Lesson1: Demand theory
1.  Definition and representation
1.1. Meaning of demand
1.2.Tables, graphs and equations
1.3. Interpretation of equations
2.  Consumer theory
2.1. Assumptions
2.2. Analysis
2.3. Limitations
2.4. Alternative approaches
3. Factors determining demand
3.1. Controllable factors 
3.2. Uncontrollable factors 
3.3. Demand and quantity demanded
4.  Elasticity 
4.1. Price elasticity 
4.2. Promotional elasticity 
4.3. Income elasticity 
4.4. Cross-elasticity 

Lesson 2. Demand estimation
1. Methods 
1.1. Consumer surveys
1.2.  Market experiments
1.3. Statistical methods
2.  Model specification
2.1. Mathematical models
2.2. Statistical models
3. Data collection 
3.1. Types of data 
3.2. Sources of data 
3.3. Presentation of data 
4. Simple regression 
4.1. The OLS method 
4.2. Application of OLS 
5. Goodness of fit 
5.1. Correlation 
5. 2. The coefficient of determination 
6.  Forecasting 

Topics of Essays and Case Studies
Case study 1: The demand for coffee
 Implications of empirical studies
Case study 2: Determinants of car prices
Case study 3: The Sports Connection

Literature:
1. [2-24], 3. [5-23]

Topic 4. Production and Cost Analysis

1. Basic terms and definitions
1.1. Factors of production
1.2. Production functions
1.3. Fixed factors 
1.4. Variable factors 
1.5. The short run 
1.6. The long run 
1.7. Scale effect
2. The short run 
2.1. Production functions and marginal product 
2.2. Derivation of the short-run input-output table
2.3. Increasing and diminishing returns 
2.4. Relationships between total, marginal and average product 
2.5. Determining the optimal use of the variable input 
2.  The long run 
2.1. Isoquants 
2.2. The marginal rate of technical substitution 
2.3. Returns to scale 
2.4. Determining the optimal combination of inputs

Topics of Essays and Case Studies
Case study 1: Microsoft – increasing or diminishing returns
Case study 2: Factor Substitution in the National Health Service
A problem-solving approach

Literature:
1. [105-125], 2. [123-145], 4. [84-178], 5. [12-31]

Topic 5: Strategy Analysis

Lesson 1 Market structure and pricing
1. Perfect competition 
1.1. Conditions 
1.2. Demand and supply
1.3. Graphical analysis of equilibrium 
1.4. Algebraic analysis of equilibrium 
1.5. Adjustment to changes in demand 
2.  Monopoly 
2.1. Conditions 
2.2. Barriers to entry and exit 
2.3. Graphical analysis of equilibrium 
2.4. Algebraic analysis of equilibrium 
2.5. Pricing and price elasticity of demand 
2.6. Comparison of monopoly with perfect competition
3. Monopolistic competition 313
3.1. Conditions 
3.2. Graphical analysis of equilibrium 
3.3. Algebraic analysis of equilibrium 
3.4 Comparison with perfect competition and monopoly 
3.5. Detailed contents xvii
3.6. Comparison with oligopoly 
4.  Oligopoly 
4.1. Conditions 
4.2. The kinked demand curve model
4.3. Collusion and cartels
4.4. Price leadership

Lesson 2. Pricing strategy

1. Competitive advantage
1.1. Nature of competitive advantage
1.2. Value creation 
2.  Market positioning, segmentation and targeting 
2.1. Cost advantage 
2.2. Benefit advantage 
2.3. Competitive advantage, price elasticity and pricing strategy 
2.4. Segmentation and targeting 
2.5. Role of pricing in managerial decision-making 
3. Price discrimination 
3.1. Definition and conditions 
3.2. Types of price discrimination 
3.3. Price discrimination in the European Union Analysis 
4.  Multiproduct pricing 
4.1. Context 
4.2. Production interrelationships 
4.3. Joint products 
5.  Transfer pricing 
5.1. Products with no external market 
5.2. Example of a solved problem 
5.3. Products with perfectly competitive external markets 
5.4. Products with imperfectly competitive external markets 

Topics of Essays and Case Studies
Case study 1: Mobile phones – Nokia
Case study 2: Handheld Computers – Palm
Price discrimination: Examples of a solved problem

Literature:
2. [91-104], 4. [105-145], 7. [45-72]

Literature:

1.	Baye, Michael. Managerial Economics and Business Strategy. 6th Edition. 2007, – 652 p.
2.	Keat, Paul, Young, Philip. Managerial Economics, Global Edition. Prentice Hall Publication. 7th Edition. – 512 p.
3.	Longman, Hague D. Managerial Economics. London, – 448 p.
4.	McGuigan, James R., Moyer, R. Charles. Managerial Economics: Applications, Strategies, and Tactics. 11th Edition, 2007, – 576 p.
5.	Aier, Jagadison K, Joseph, Comprix, Matthew T Gunlock, Deanna Lee. “The Financial Expertise of CFOs and Accounting Restatements.” Accounting Horizons, vol. 19, no. 3 (September 2005) – 123 p.
6.	 Arora. M. N., Cost Accounting- Principles & Practice, Vikas Publishing House Pvt. Ltd., New Delhi, Tenth edition, 2007, – 558 p.
7.	Boyce, William. The New Managerial Economics Biztantra, – 336p.
8.	Gopalakrishna, Himalaya. A study of Managerial Economics, Mumbai, – 670 p.
9.	Joel, Dean, Managerial Economics. Eastern Edition, – 540 p.
10.	Keat, Paul, Young, Philip. Managerial Economics, Global Edition. Prentice Hall Publication. 7th Edition. – 512 p.
11.	 Lee ,Curtis M. Grimm Hun, Smith, Ken G. Strategy As Action: Competitive Dynamics and Competitive Advantage (Strategic Management Series). 2005, - 384 p.
12.	Suma, Damodaran. Managerial Economics. Oxford University Press, – 448 p.
13.	Sytse Douma,  Hein Schreuder. Economic Approaches to Organisations. 5th Edition. Nov 2012, – 470 p