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. Absence not exceeding two units in total is accepted. More missing lectures must be excused/reasoned by mail.

Interactive lecture with examples and group assignments; Online moduels with Multiple Choice (MC) questions.

The content of the course will be covered in 8 learning modules. Each learning module contains slides, the hint to the related chapters in the book  and a Multiple Choice question. A maximum of 1.25 points can be gained for each MC question.

The total grade is calculated as follows:

• MC-questions 10%
• Group work 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.

Active classroom participation can influence the grade positively!

Grading scheme:

100% - 90% = excellent (1)
 89% -  80% = good (2)
 79% -  70% = satisfactory (3)
 69% -  60% = sufficient (4)
           <59% = deficient (5)

Positive completion of “Introduction to Management”

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

Department of Economics

Per mail: francesco.scarazzato@wu.ac.at.