Managerial Economics: Theory And Practice
The theory of Managerial Economics includes a focus on; incentives, business organization, biases, advertising, innovation, uncertainty, pricing, analytics, and competition.[9] In other words, managerial economics is a combination of economics and managerial theory. It helps the manager in decision-making and acts as a link between practice and theory.[10]Furthermore, managerial economics provides the device and techniques for managers to make the best possible decisions for any scenario.
Managerial Economics: Theory and Practice
With regard to macroeconomic trends, the forecasting and analysis of areas such as output, unemployment, inflation and societal issues are essential in managerial economics.[66] This is because these areas in the macroeconomy have the ability to provide an overview of global market conditions, which can be imperative for managers to understand.[67] An example of managerial economics using macroeconomic principles is a manager choosing to hire new staff rather than training old ones in a time where the rate of unemployment is high, as the possible talent pool would be very large.[68] The political structure of a country (whether authoritarian or democratic), political stability and attitudes towards the private sector can also affect the growth and development of organizations.[69] This can be seen through the influence different government policies can have on management quality.[68] In particular, policies around product market competition has been seen to significantly impact collective management practices in countries by either reducing or supporting poorly managed firms.[68] A clear understanding of relevant markets and their different conditions is a vital task for a managerial economist, as even with market instability and fluctuations the goal is to always steer the company to profits.[61]
EL 707 - Managerial Economics(3.00 cr.)Combines theory and practice in using economics for making profitable business decisions. Theory includes demand and cost analysis of the firm, as well as competitive market situation analysis. This course also incorporates topics surrounding how the firm is impacted by the macroeconomic environment, including theories of the business cycle, economic growth, and international trade and finance. In addition to theory, there is practical application of the tools discussed. Quantitative techniques for managers are also covered as appropriate, and the course provides a basic understanding of how to use economic data in the business environment. Restrictions: Restricted to Emerging Leaders MBA students.Sessions Typically Offered: FallYears Typically Offered: Annually
Managerial economics involves decision-making with both short-term business goals and long-term economic growth in mind. It combines economic principles and econometrics with managerial theory, looking at business decisions from multiple perspectives to ease long-term planning.
Using economic theory to ground business decisions is a way to bridge the gap between theory and practice. It looks at goods and services, investment decisions, and market structures through the lens of microeconomic theory and is appropriate for both profit and non-profit organizations.
Economists can help us understand the industry as a whole, but putting theory to practice requires special decision-making skills. edX can help you build those skills and form a knowledge base designed to make forecasting practical and managerial problems a matter of perspective. It's time to build the skills you need to lead your business in the right direction.
Managerial Economics assists the managers of a firm in a rational solution of obstacles faced in the firm’s activities. It makes use of economic theory and concepts. It helps in formulating logical managerial decisions.
Managerial economics uses both Economic theory as well as Econometrics for rational managerial decision making. Econometrics is defined as use of statistical tools for assessing economic theories by empirically measuring relationship between economic variables. It uses factual data for solution of economic problems.
Managerial Economics is associated with the economic theory which constitutes “Theory of Firm”. Theory of firm states that the primary aim of the firm is to maximize wealth. Decision making in managerial economics generally involves establishment of firm’s objectives, identification of problems involved in achievement of those objectives, development of various alternative solutions, selection of best alternative and finally implementation of the decision.
Applications of microeconomic theory to problems of formulating managerial decisions. Emphasis on economics as a science that facilitates decision making. Topics considered include optimization techniques, risk analysis and estimation of demand and costs of production, market structures and pricing practice, and antitrust economics. Integrates theory and practice.
Professor Harrington has published more than 75 articles and his research has appeared in many leading journals including the American Economic Review, Journal of Political Economy, Econometrica, Management Science, and American Journal of Sociology. His current research focuses on collusion and cartels, with the objectives of understanding observed collusive practices, developing observable markers of collusion, and designing competition policy to detect and deter collusion. His research is on the interface of theory and practice and has been presented before competition authorities throughout the world including those of Chile, European Union, Japan, South Africa, and the U.S. He has also published two textbooks: Economics of Regulation and Antitrust (4th edition, MIT Press) with Kip Viscusi and John Vernon, and Games, Strategies, and Decision Making (2nd edition, Worth Publishers).
This course will introduce you to "managerial economics" which is the application of microeconomic theory to managerial decision-making. Microeconomic theory is a remarkably useful body of ideas for understanding and analyzing the behavior of individuals and firms in a variety of economic settings. The goal of the course is for you to understand this body of theory well enough so that you can effectively analyze managerial (and other) problems in an economic framework. While this is a "tools" course, we will cover many real-world applications, particularly business applications, so that you can witness the usefulness of these tools and acquire the skills to use them yourself. We will depart from the usual microeconomic theory course by giving more emphasis to prescription: What should a manager do in order to achieve some objective? That course deliverable is to compare with description: Why do firms and consumers act the way they do? The latter will still be quite prominent in this course because only by understanding how other firms and customers behave can a manager determine what is beswt for him or her to do. Strategic interaction is explored both in product markets and auctions. Finally, the challenges created by asymmetric information - both in the market and within the firm - are investigated.
The objective of this course is to make you more skilled in strategic reasoning. Strategic situations permeate our lives and we will examine many such situations through the lens of game theory. The course is composed of game-theoretic concepts, applications, and experiential learning. The bulk of the applications are to business situations including product entry, bargaining, managerial incentive contracts, and network effects. Given the ubiquitous presence of strategic situations in human societies, applications will also extend to politics, war, sports, history, crime, theology, and every day life, and cover such topics as steroid use in sports, traffic congestion, corruption, racial discrimination, and sexual harassment. Students will regularly participate in experiments involving strategic reasoning, and form teams to compete in a simulated industry environment.
David de Meza is the Eric Sosnow Professor of Management in the LSE Department of Management. His research interests include the property rights theory of the firm, optimism and entrepreneurship, and finance and insurance gaps in theory and practice.
Managerial economics is a discipline that combines economic theory with managerial practice. It helps in covering the gap between the problems of logic and the problems of policy. The subject offers powerful tools and techniques for managerial policy making.
Intermediate level course in macroeconomic theory and practice oriented toward industrial economy issues, with explicit, frequent reference to the global economic and financial turbulence of the last five years. Begins with rigorous coverage of national income accounting and definitions of the most important macroeconomic variables. Covers short-run Keynesian underemployment equilibria, money and financial assets, labor markets, inflation, economic growth and technological change, monetary and fiscal policy, the origins of the financial crisis of 2007-08. Includes interpretation of the most important macroeconomic indicators. Prerequisite: Comfort with basic economic principles at level of E201 or equivalent.
Combines economic and political perspectives to develop an interdisciplinary understanding of selected topics in economic development. Each session addresses a particular question that arises as policymakers contend with the dynamic interplay between economics and politics as competing influences on policy choice. How can it be rational for policymakers to adopt policies that harm a majority of their own citizens? In what ways do institutions shape the development process? How does history shape the evolution of institutions? Do elections lead to better or worse policy choices? Does democracy benefit the poor and promote economic growth? Comprehensive answers to these types of questions require a political economy perspective -- one that combines an understanding of the underlying economics with consideration of the interests and political influence of various stakeholders and pressure groups. In addition, a central goal of this seminar is to bridge the gap between theory and practice by providing tools for incorporating political economy perspectives into development policy analysis. 041b061a72