This class exists in these courses :
• IÉSEG > IESEG Degree - Programme Grande École > Semester 1 > 2,00 ECTS

Prerequisites

The course Economics for managers presents different market structures and analyses the strategies developed by firms to maximize profit and to avoid competitors from entering the markets. The course studies different market structures which constitute market failures such as monopoly, oligopoly, mopolisitics competitive market and other market structures. This course will help the students understand how the economy is structured and how the firms compete in these markets.

Learning outcomes

Be able to think like an economist
Identify market structures
Be able to maximize profit of firms in different market structures
Develop strategies for firms
Calculate various measures o market power
Formulate various pricing strategies that allows firms with market power to maximize profit

Course description

Chapter 0 Introduction to the causes market failures
Chapter 1 Monopoly Market: Profit Maximization in a Monopoly Market, The Economic Effects of Monopoly
Chapter 2 Oligopoly Market: Duopoly of Cornot, Bertrand and Stackelberg
Chapter 3 Monopolistic Competitive Market: Theory of Chambarlain, Theory of Robinson, Profit Maximization in a MCM
Chapter 4 Contestable Market: Theory of Baumol Panzar and Willig
Chapter 5 Theory of Transaction Cost: Theory of Coase and Williamson

Class type

Class structure

Teaching methods

• E-learning
• Interactive class
• Presentation
• Project work
• Research

Assessment

Recommended reading

• The Principle of Economics. 2nd Edition - Mankiw, N.G.

• Microeconomics. Addiwerson-Wesley, Pearson, 6th Ed - Perlof, J.M. 2012

• Intermediate Microeconomics. A Modern Approach. W.W. Norton & Company, 8th Edition - Varian, H.R. 2010