Book description
A Problembased Approach that Uses Modern Theories and Realworld Examples
Managerial Economics and Strategy uses realworld issues and examples to illustrate how economic principles impact business decisions. Emphases on agency and contract theory, managerial behavioral economics, game theory, and pricing are especially valuable to future managers. Intext examples and boxed minicases use actual data to illustrate the use of basic economic models, while Q&As pose important managerial or economic problems and demonstrate a stepbystep approach to solving them.
The Second Edition has been fully revised and updated to reflect new supplyanddemand curves and include discussions of corporate social responsibility, opportunistic behavior, and innovation. It also features new learning objectives, examples, endofchapter questions, and spreadsheet exercises.
Table of contents
 Practice, Engage, and Assess
 Managerial Economics and Strategy
 The Pearson Series in Economics
 Managerial Economics and Strategy
 Brief Contents
 Contents
 Preface
 1 Introduction

2 Supply and Demand
 Learning Objectives
 2.1 Demand
 2.2 Supply
 2.3 Market Equilibrium
 2.4 Shocks to the Equilibrium
 2.5 Effects of Government Interventions
 2.6 When to Use the SupplyandDemand Model
 Summary

Questions
 1. Demand  Demand
 2. Supply  Supply
 3. Market Equilibrium  Market Equilibrium
 4. Shocks to the Equilibrium  Shocks to the Equilibrium
 5. Effects of Government Interventions  Effects of Government Interventions
 6. When to Use the SupplyandDemand Model  When to Use the SupplyandDemand Model
 7. Managerial Problem  Managerial Problem
 8. MyEconLab Spreadsheet Exercises 17 MyEconLab Spreadsheet Exercises 17

3 Empirical Methods for Demand Analysis
 Learning Objectives
 3.1 Elasticity
 3.2 Regression Analysis
 3.3 Properties and Statistical Significance of Estimated CoefficientsProperties and Statistical Significance of Estimated Coefficients
 3.4 Regression Specification
 3.5 Forecasting
 Summary

Questions
 1. Elasticity  Elasticity
 2. Regression Analysis  Regression Analysis
 3. Properties and Statistical Significance of Estimated Coefficients  Properties and Statistical Significance of Estimated Coefficients
 4. Regression Specification  Regression Specification
 5. Forecasting  Forecasting
 6. Managerial Problem  Managerial Problem
 7. MyEconLab Spreadsheet Exercises23

4 Consumer Choice
 Learning Objectives
 4.1 Consumer Preferences
 4.2 Utility
 4.3 The Budget Constraint
 4.4 Constrained Consumer Choice
 4.5 Deriving Demand Curves
 4.6 Behavioral Economics
 Summary

Questions
 1. Consumer Preferences  Consumer Preferences
 2. Utility  Utility
 3. The Budget Constraint  The Budget Constraint
 4.Constrained Consumer Choice
 5. Deriving Demand Curves  Deriving Demand Curves
 6. Behavioral Economics  Behavioral Economics
 7. Managerial Problem  Managerial Problem
 8. MyEconLab Spreadsheet Exercises 11 MyEconLab Spreadsheet Exercises 11
 Appendix 4A The Marginal Rate of Substitution The Marginal Rate of Substitution
 Appendix 4B The Consumer Optimum The Consumer Optimum

5 Production
 Learning Objectives
 5.1 Production Functions
 5.2 ShortRun Production
 5.3 LongRun Production
 5.4 Returns to Scale
 5.5 Innovation
 Summary

Questions
 1. Production Functions Production Functions
 2. ShortRun Production ShortRun Production
 3. LongRun Production LongRun Production
 4. Returns to Scale Returns to Scale
 5. Innovation Innovation
 6. Managerial Problem Managerial Problem
 7. MyEconLab Spreadsheet Exercises 9 MyEconLab Spreadsheet Exercises 9

6 Costs
 Learning Objectives
 6.1 The Nature of Costs
 6.2 ShortRun Costs
 6.3 LongRun Costs
 6.4 The Learning Curve
 6.5 The Costs of Producing Multiple Goods
 Summary

Questions
 1. The Nature of Costs The Nature of Costs
 2. ShortRun Costs ShortRun Costs
 3. LongRun Costs LongRun Costs
 4. The Learning Curve The Learning Curve
 5. The Costs of Producing Multiple Goods The Costs of Producing Multiple Goods
 6. Managerial Problem Managerial Problem
 7. MyEconLab Spreadsheet Exercises 7 MyEconLab Spreadsheet Exercises 7
 Appendix 6A LongRun Cost Minimization LongRun Cost Minimization

7 Firm Organization and Market Structure
 Learning Objectives
 7.1 Ownership and Governance of Firms
 7.2 Profit Maximization
 7.3 Owners’ Versus Managers’ ObjectivesOwners’ Versus Managers’ Objectives
 7.4 The Make or Buy Decision
 7.5 Market Structure
 Summary

Questions
 1. Ownership and Governance of Firms  Ownership and Governance of Firms
 2. Profit Maximization  Profit Maximization
 3. Owners’ Versus Managers’ Objectives  Owners’ Versus Managers’ Objectives
 4. The Make or Buy Decision  The Make or Buy Decision
 5. Market Structure  Market Structure
 6. Managerial Problem  Managerial Problem
 7. MyEconLab Spreadsheet Exercises 26 MyEconLab Spreadsheet Exercises 26
 Appendix 7A Interest Rates, Present Value, and Future Value Interest Rates, Present Value, and Future Value

8 Competitive Firms and Markets
 Learning Objectives
 8.1 Perfect Competition
 8.2 Competition in the Short Run
 8.3 Competition in the Long Run
 8.4 Competition Maximizes Economic WellBeing
 Summary

Questions
 1. Perfect Competition  Perfect Competition
 2. Competition in the Short Run  Competition in the Short Run
 3. Competition in the Long Run  Competition in the Long Run
 4. Competition Maximizes Economic WellBeing  Competition Maximizes Economic WellBeing
 5. Managerial Problem  Managerial Problem
 6. MyEconLab Spreadsheet Exercises 22 MyEconLab Spreadsheet Exercises 22

9 Monopoly
 Learning Objectives
 9.1 Monopoly Profit Maximization
 9.2 Market Power
 9.3 Market Failure Due to Monopoly Pricing
 9.4 Causes of Monopoly
 9.5 Advertising
 9.6 Networks, Dynamics, and Behavioral Economics
 Summary

Questions
 1. Monopoly Profit Maximization  Monopoly Profit Maximization
 2. Market Power Market Power
 3. Market Failure Due to Monopoly Pricing  Market Failure Due to Monopoly Pricing
 4. Causes of Monopoly  Causes of Monopoly
 5. Advertising  Advertising
 6. Networks, Dynamics, and Behavioral Economics
 7. Managerial Problem  Managerial Problem
 8. MyEconLab Spreadsheet Exercises 25 MyEconLab Spreadsheet Exercises 25

10 Pricing with Market Power
 Learning Objectives
 10.1 Conditions for Price Discrimination
 10.2 Perfect Price Discrimination
 10.3 Group Price Discrimination
 10.4 Nonlinear Price Discrimination
 10.5 TwoPart Pricing
 10.6 Bundling
 10.7 PeakLoad Pricing
 Summary

Questions
 1. Conditions for Price Discrimination   Conditions for Price Discrimination
 2. Perfect Price Discrimination  Perfect Price Discrimination
 3. Group Price Discrimination  Group Price Discrimination
 4. Nonlinear Price Discrimination  Nonlinear Price Discrimination
 5. TwoPart Pricing  TwoPart Pricing
 6. Bundling  Bundling
 7. PeakLoad Pricing  PeakLoad Pricing
 8. Managerial Problem  Managerial Problem
 9. MyEconLab Spreadsheet Exercises 23 MyEconLab Spreadsheet Exercises 23

11 Oligopoly and Monopolistic Competition
 Learning Objectives
 11.1 Cartels
 11.2 Cournot Oligopoly
 11.3 Bertrand Oligopoly
 11.4 Monopolistic Competition
 Summary

Questions
 1. Cartels  Cartels
 2. Cournot Oligopoly  Cournot Oligopoly
 3. Bertrand Oligopoly  Bertrand Oligopoly
 4. Monopolistic Competition  Monopolistic Competition
 5. Managerial Problem  Managerial Problem
 6. MyEconLab Spreadsheet Exercises 16 MyEconLab Spreadsheet Exercises 16
 Appendix 11A Cournot Oligopoly with Many Firms Cournot Oligopoly with Many Firms
 Appendix 11B NashBertrand Equilibrium NashBertrand Equilibrium

12 Game Theory and Business Strategy
 Learning Objectives
 12.1 Oligopoly Games
 12.2 Types of Nash Equilibria
 12.3 Information and Rationality
 12.4 Bargaining
 12.5 Auctions
 Summary

Questions
 1. Oligopoly Games  Oligopoly Games
 2. Types of Nash Equilibria  Types of Nash Equilibria
 3. Information and Rationality  Information and Rationality
 4. Bargaining  Bargaining
 5. Auctions  Auctions
 6. Managerial Problem  Managerial Problem
 7. MyEconLab Spreadsheet Exercises 21 MyEconLab Spreadsheet Exercises 21

13 Strategies over Time
 Learning Objectives
 13.1 Repeated Games
 13.2 Sequential Games
 13.3 Deterring Entry
 13.4 Cost and Innovation Strategies
 13.5 Disadvantages of Moving First
 13.6 Behavioral Game Theory
 Summary

Questions
 1. Repeated Games  Repeated Games
 2. Sequential Games  Sequential Games
 3. Deterring Entry  Deterring Entry
 4. Cost and Innovation Strategies  Cost and Innovation Strategies
 5. Disadvantages of Moving First  Disadvantages of Moving First
 6. Behavioral Game Theory  Behavioral Game Theory
 7. Managerial Problem  Managerial Problem
 8. MyEconLab Spreadsheet Exercises 16
 Appendix 13A A Mathematical Approach to Stackelberg Oligopoly A Mathematical Approach to Stackelberg Oligopoly

14 Managerial Decision Making Under Uncertainty
 Learning Objectives
 14.1 Assessing Risk
 14.2 Attitudes Toward Risk
 14.3 Reducing Risk
 14.4 Investing Under Uncertainty
 14.5 Behavioral Economics and Uncertainty
 Summary

Questions
 1. Assessing Risk  Assessing Risk
 2. Attitudes Toward Risk  Attitudes Toward Risk
 3. Reducing Risk  Reducing Risk
 4. Investing Under Uncertainty  Investing Under Uncertainty
 5. Behavioral Economics and Uncertainty  Behavioral Economics and Uncertainty
 6. Managerial Problem  Managerial Problem
 7. MyEconLab Spreadsheet Exercises 24

15 Asymmetric Information
 Learning Objectives
 15.1 Adverse Selection
 15.2 Reducing Adverse Selection
 15.3 Moral Hazard
 15.4 Using Contracts to Reduce Moral Hazard
 15.5 Using Monitoring to Reduce Moral Hazard
 Summary

Questions
 1. Adverse Selection  Adverse Selection
 2. Reducing Adverse Selection  Reducing Adverse Selection
 3. Moral Hazard  Moral Hazard
 4. Using Contracts to Reduce Moral Hazard  Using Contracts to Reduce Moral Hazard
 5. Using Monitoring to Reduce Moral Hazard  Using Monitoring to Reduce Moral Hazard
 6. Managerial Problem  Managerial Problem
 7. MyEconLab Spreadsheet Exercises 14 MyEconLab Spreadsheet Exercises 14

16 Government and Business Government and Business
 Learning Objectives
 16.1 Market Failure and Government Policy
 16.2 Regulation of Imperfectly Competitive Markets
 16.3 Antitrust Law and Competition Policy
 16.4 Externalities
 16.5 OpenAccess, Club, and Public Goods
 16.6 Intellectual Property

Summary

Questions
 1.Market Failure and Government Policy
 2.Regulation of Imperfectly Competitive Markets
 3.Antitrust Law and Competition Policy
 4.Externalities
 5.OpenAccess, Club, and Public Goods
 6. Intellectual Property Intellectual Property
 7. Managerial Problem Managerial Problem
 8. MyEconLab Spreadsheet Exercises19 MyEconLab Spreadsheet Exercises19

Questions

17 Global Business
 Learning Objectives
 17.1 Reasons for International Trade
 17.2 Exchange Rates
 17.3 International Trade Policies
 17.4 Multinational Enterprises
 17.5 Outsourcing
 Summary

Questions
 1. Reasons for International Trade  Reasons for International Trade
 2. Exchange Rates  Exchange Rates
 3. International Trade Policies  International Trade Policies
 4. Multinational Enterprises  Multinational Enterprises
 5. Outsourcing  Outsourcing
 6. Managerial Problem  Managerial Problem
 7. MyEconLab Spreadsheet Exercises 25 MyEconLab Spreadsheet Exercises 25
 Answers to Selected Questions
 Definitions
 References
 Sources for Managerial Problems, MiniCases, and Managerial Implications
 Index
 Credits
 Featured MiniCases in This Book
 Featured Managerial Implications in This Book
Product information
 Title: Managerial Economics and Strategy, 2/e
 Author(s):
 Release date: February 2016
 Publisher(s): Pearson
 ISBN: 9780134472553
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