Managerial Economics

✍ Scribed by Ivan Png

• Publisher: Routledge
• Year: 2022
• Tongue: English
• Leaves: 341
• Edition: 6
• Category: Library

✦ Synopsis

Now in its sixth edition, Ivan Png's Managerial Economics has been extensively revised with

• an introductory chapter emphasizing decision-making and behavioral biases,
• intensive application to current business and economic issues including technology, globalization, and pandemics,
• a closing chapter highlighting business responses to climate change,
• a streamlined presentation focusing on the economics that managers need to know.

As always, the text presents the key concepts of microeconomics intuitively, without sophisticated mathematics. Throughout, it emphasizes actual management applications.

The new sixth edition is updated with fresh up-to-date vignettes and discussion questions from all over the world and enhanced with detailed instructor supplements. It is an ideal text for any course focusing on the practical application of microeconomic principles to management.

The book provides truly useful economics for managers. In the words of one professor, "I can use your book for serious conversation with adult students."

✦ Table of Contents

Cover
Half Title
Endorsement
Title Page
Copyright Page
Dedication
Table of Contents
Preface
Acknowledgments
About the Author
Chapter 1 Introduction to Managerial Economics
1.1 What Is Managerial Economics?
1.2 Value Added
1.3 Decision-Making
1.4 Bounded Rationality
Sunk-cost Fallacy
Status Quo Bias
Anchoring
1.5 Organization
Organizational Boundaries
Outsourcing
1.6 Markets
Competitive Markets
Market Power
Imperfect Markets
Sources
Part I Competitive Markets
Chapter 2 Demand
2.1 Introduction
2.2 Individual Demand
Construction
Marginal Benefit
Preferences
2.3 Demand and Income
Income Changes
Normal and Inferior Products
2.4 Other Factors in Demand
Complements and Substitutes
Advertising
Business Demand
2.5 Buyer Surplus
Benefit
Benefit and Expenditure
Price Changes
Package Deals and Two-Part Pricing
2.6 Market Demand
Market Demand Curve: Construction
Sources
Chapter 3 Elasticity
3.1 Introduction
3.2 Own-Price Elasticity
Estimation
Properties
Accuracy
Elastic/inelastic Demand
3.3 Forecasting
Quantity Demanded
Expenditure
Pricing Strategy
3.4 Behavioral Factors
Benefits/costs of Economizing
Availability of Substitutes
Buyer’s Prior Commitments
Adjustment Time
Sunk-cost Fallacy
Anchoring
3.5 Other Elasticities
Income Elasticity
Cross-price Elasticity
Advertising Elasticity
Forecasting Multiple Factors
Sources
Chapter 4 Supply
4.1 Introduction
4.2 Short-Run Costs
Fixed and Variable Costs
Marginal Cost
Average Cost
Production Technology
4.3 Short-Run Individual Supply
Production Rate
Break-even Analysis
Individual Supply Curve
4.4 Long-Run Individual Supply
Long-run Costs
Production Rate
Break-even Analysis
Individual Supply Curve
4.5 Market Supply
Short and Long Run
Properties
4.6 Elasticity of Supply
Price Elasticity
Intuitive Factors
Available Production Capacity
Adjustment Time
4.7 Seller Surplus
Market Supply Curve: Construction
Short Run
Long Run
Sources
Chapter 5 Market Equilibrium
5.1 Introduction
5.2 Perfect Competition
5.3 Market Equilibrium
Demand and Supply
Excess Supply
Excess Demand
5.4 Demand Shift
Equilibrium Change
Price Elasticity of Supply
Price Elasticity of Demand
5.5 Supply Shift
5.6 Intermediation
Buyer’s Price and Seller’s Price
Incidence
5.7 Invisible Hand
Economic Efficiency
Two Roles of Prices
Distortion
Sources
Part II Market Power
Chapter 6 Costs
6.1 Introduction
6.2 Economic Cost
6.3 Opportunity Cost
Alternative Courses of Action
Identifying Opportunity Cost
Decision-making
6.4 Sunk Costs
Alternative Courses of Action
Identifying Sunk Costs
Decision-making
Strategic Implications
6.5 Economies of Scale
Fixed and Variable Costs
Marginal and Average Costs
Diseconomies of Scale
Strategic Implications
Sunk and Fixed Costs
6.6 Economies of Scope
Joint Cost
Strategic Implications
Diseconomies of Scope
6.7 Bounded Rationality
Status Quo Bias
Sunk-cost Fallacy
Fixed-cost Fallacy
Sources
Chapter 7 Monopoly
7.1 Introduction
7.2 Sources of Market Power
Product Differentiation
Intellectual Property
Economies of Scale and Scope
Regulation
7.3 Profit Maximum
Revenue
Costs
Profit-maximizing Rate
Break-even Analysis
Profit Measures
7.4 Demand and Cost Changes
Demand Change
Marginal Cost Change
Fixed-cost Change
7.5 Advertising
Profit-maximizing Advertising
Advertising–sales Ratio
7.6 Research and Development
7.7 Market Structure
7.8 Monopsony
Benefit and Expenditure
Maximizing Net Benefit
Sources
Chapter 8 Pricing
8.1 Introduction
8.2 Uniform Pricing
Price Elasticity
Profit-maximizing Price
Demand and Cost Changes
Common Misconceptions
8.3 Complete Price Discrimination
Shortcomings of Uniform Pricing
Price Discrimination
Economic Efficiency
Information and Resale
8.4 Direct Segment Discrimination
Homogeneous Segments
Heterogeneous Segments
Implementation
8.5 Indirect Segment Discrimination
Structured Choice
Implementation
8.6 Selecting the Pricing Policy
Technology
Cannibalization
Sources
Chapter 9 Strategic Thinking
9.1 Introduction
9.2 Nash Equilibrium
Definition
Solving Equilibrium – Formal Method
Solving Equilibrium – Informal Method
Non-equilibrium Strategies
9.3 Randomized Strategies
Nash Equilibrium in Randomized Strategies
Why Randomize?
9.4 Competition Or Coordination
9.5 Sequencing
Backward Induction
Equilibrium Strategy
First-mover Advantage
9.6 Strategic Move
9.7 Conditional Strategic Move
Promise
Threat
Solving Nash Equilibrium in Randomized Strategies
Graphical Solution
Algebraic Solution
Note
Sources
Part III Imperfect Markets
Chapter 10 Externalities
10.1 Introduction
10.2 Positive Externality
Individual Maximum
Joint Maximum
10.3 Negative Externality
10.4 Benchmark
Common Ownership
Agreement
Assignment of Rights
Free-riding
10.5 Network Effects and Externalities
Critical Mass
Expectations
Tipping
Price Elasticity
10.6 Public Goods
Rivalness
Benchmark: Economic Efficiency
10.7 Excludability
Content and Delivery
Law
Technology
Sources
Chapter 11 Asymmetric Information
11.1 Introduction
11.2 Imperfect Information
Imperfect and Asymmetric Information
Risk
Risk Aversion
11.3 Adverse Selection
Demand and Supply
Market Equilibrium
Economic Inefficiency
Market Failure
11.4 Appraisal
11.5 Screening
Self-selection
Differentiating Variables
11.6 Signaling
11.7 Contingent Contracts
Sources
Chapter 12 Incentives and Organization
12.1 Introduction
12.2 Moral Hazard
Asymmetric Information About Actions
Economic Inefficiency
Degree of Moral Hazard
12.3 Monitoring and Incentives
Monitoring
Incentives
Risk
12.4 Holdup
Specific Investments
Incomplete Contracts
12.5 Ownership
Residual Income
Vertical Integration
12.6 Organizational Architecture
Holdup
Moral Hazard
Internal Market Power
Economies of Scale and Scope
Balance
Sources
Chapter 13 Regulation
13.1 Introduction
13.2 Natural Monopoly
Government Ownership
Price Regulation
Rate-of-return Regulation
13.3 Potentially Competitive Market
Competition Law
Conduct Regulation
Structural Regulation
13.4 Asymmetric Information
Disclosure
Conduct Regulation
Structural Regulation
13.5 Externalities
User Fee/tax
Quota/standard
13.6 Global Externalities
Multilateral Regulation
Information and Biases
13.7 Contingent Externalities
Sources
Index