In case the course cannot be held in presence mode (presence mode is the default), it will be held in "hybrid mode", i.e., the lecturer will give the course at the ususal times, but in addition the session will be streamed live (synchronous event) and the stream will be recorded as well. The recorded material might be edited for better clarity and will then be provided to the students (asynchronous content).

In this course, central aspects of economic thinking will be applied to managerial contexts, including:

• Demand theory and estimation (basics)
• Pricing strategies (price discrimination, bundling)
• Strategic decision making (game theory, oligopolistic markets)
• Principal-Agent situations (incentive contracts)

After completing this course, students will be able to apply basic contents and methods from the field of managerial economics to solve problems in practical situations. Managerial economics uses 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 will learn to understand market demand and how to empirically estimate it; pricing strategies like price discrimination and bundling are discussed in particular detail. Based on simple game-theoretic concepts will be understood. Students will be able to approach strategic situations regarding other companies (e.g., in oligopolistic markets) as well as within the company (e.g., incentive contracts). 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. Note that for this course this translates into a minimum attendence of 4 units!

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 (e.g., 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 (e.g., 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, and the unit schedule of this course has been communicated well in advance.

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:

• Class participation 10%
• Home exercises 30%
• Final exam 60%

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”

It would be advantageous if students would repeat principles of economics (basics of demand and supply, welfare considerations) before attending this course.

The general communication (questions to lecturer and discussions among the group) are supposed to take place in the respective learn@WU forums.

Only in personal matters (e.g., illness) the lecturer can be reached under sonntag@ihs.ac.at. All content-wise communication should take place in the respective learn@WU forums.