Professor Luis Rayo NAB5.20.

This course is compulsory on the Executive Global MSc Management. This course is not available as an outside option.

A graduate-level introduction to the foundations of managerial economics and its application to high-level business decisions. Topics include:

1. Economics as a theory of organisation.

2. Demand, supply, and equilibrium: the determinants of consumers' and firms' market responses, the nature of non-strategic interaction, government intervention, international trade

3. Externalities and market failure

4. Strategic interaction: voting, oligopoly, sequential rationality

5. Price discrimination: nonlinear pricing, social economics

6. Choice under uncertainty: attitudes towards risk

7. Information and efficiency: adverse selection

8. Behavioural economics: some examples

32 hours of lectures in the MT.

Scheduled over two modules. Eight 4 hour sessions plus two review sessions.

Students will be expected to produce 1 problem sets in the MT.

Optional textbooks: Saul Estrin et al., Microeconomics, Prentice Hall, 2008. B. Douglas Bernheim and Michael D. Whinston, Microeconomics, McGraw Hill, 2008. Further readings will be provided at the beginning of the course.

Coursework (25%), other (15%), class participation (10%) and take home exam (50%).