Managerial Economics

Managerial Economics applies economic theory and methods to business decision-making. Economic ideas related to optimization, the theory of consumer demand, the theory of the firm, industrial organization and decision making under uncertainty are studied using methods of numerical analysis, statistical estimation, game theory and constrained optimization.

The objective of the course is to provide undergraduate and graduate students in MAVT with an understanding of the use of economic concepts for firm-level management decisions. The course covers a number of models and methods of analysis which are commonly employed in business decisions. The course covers the economic theory of choice, models of oligopoly and industrial organization, applications of game theory to contract design and agency theory, and the theory of decision making under uncertainty focusing specifically on long-term investment decisions. The course will include three lectures by Professor Volker Hoffman focusing on related case-studies in management.