In this course, the behavior of buyers or sellers with a dominant market position (monopolies and monopsonies) will be analyzed; corporate strategies like price discrimination, bundling, and coupling are discussed in particular detail. Based on simple game-theory concepts, strategic decision-making for oligopolistic markets (incl. price and non-price competition, entry restrictions) will be discussed.

After completing this course, students should be able to apply basic contents and methods from the field of managerial economics to solve problems in practical situations. Managerial economics used economic concepts and methods to aid decision making processes in companies or to solve management-related problems. The course provides an introduction to the field’s most important methods and concepts. Students should learn to understand the behavior of buyers or sellers with a dominant market position (monopolies and monopsonies); corporate strategies like price discrimination, bundling, and coupling are discussed in particular detail. Based on simple game-theory concepts, strategic decision making for oligopolistic markets (incl. price and non-price competition, entry restrictions) and within companies (principal-agent problems) will be discussed. In the empirical part of the course, students gain a first insight into empirical data analysis methods and learn how to interpret the results of empirical studies and independently conduct simple analyses.

Continuous assessment courses (PI) are high-interactive courses.

For a positive completion of the course an 80% presence is required.

Should there be an important reason for an absence in the course, then a maximum of 20% of the entire course duration can be missed. For cumulative absences of more than 20%, the course must be repeated. A confirmation (eg. a medical certificate) must be provided for the absence.

According to the examination regulations of the WU, important reasons are those which are outside the disposition of the student (illness, accident, death of a close relative). Professional obligations are not considered as an important reason within the meaning of the examination regulations, because they are in the disposition of the students.

The course consists of two parts: a lecture section and a practical lab section. The most important contents and methods are presented by the instructors. The lecture section covers aspects of theory, and in the practical lab section, relevant practical examples and basic empirical data analysis are presented.

The total grade is calculated as follows:

• Practice exam 20%
• Class participation 10%
• Final exam 70%

The final exam covers the contents of the course and relevant literature. At least 50% of the maximum achievable points must be attained for a positive grade.

Students are expected to prepare for each class unit by reading the relevant literature. Practice examples are handed out at each class, to be completed by the next class.

Positive completion of “Introduction to Management”

Health Economics and Policy Division:
by e-mail: Mujaheed Shaikh

Building D4, Office 3.276

Phone: +43 (01) 31336 6018

Email: mujaheed.shaikh@wu.ac.at