BUS-G304 Managerial Economics
- 16 weeks
- 3 credits
- Prerequisite(s): BUS-G202 with a grade of C or higher
Only for business majors; non-majors should take G300. The main theme in the course is the application of formal analysis to managerial decisions in a variety of settings. We begin by using optimization theory to analyze the classical supply and demand model of large markets, in which firms make production decisions based on a market price that they cannot affect. Then, we move on to markets with fewer firms, using game-theoretic tools to study managerial decisions in an environment where those decisions impact the market as a whole. Lastly, we consider the firm as a unit, focusing on more advanced pricing strategies and contracting. This latter part of the course relies heavily on recent work in information economics. Credit not given for both G300 and G304.