Managerial Economics

W. Bruce Allen (Ph.D., Economics, Northwestern University) is Professor of Business and Public Policy at the Wharton School of Business, the University of Pennsylvania. For many years he was the Vice Dean and Director of the Wharton Graduate Division. He is an internationally recognized expert in transportation economics, and he specializes in demand theory and logistics. In addition to his duties at Wharton, Professor Allen teaches each summer in India and consults for numerous companies domestically and abroad. He has won a number of teaching awards, including the coveted Anvil Award, the highest teaching honor at Wharton since it is voted on by the students. Keith Weigelt (Ph.D., Economics, Northwestern University) is the Rebecca and Morris Marks Professor of Management at the Wharton School of Business, the University of Pennsylvania. He is an internationally recognized expert in business strategy, game theory, and tournaments, with articles published in the following leading journals: Journal of Political Economy, Econometrica, American Economic Review, Quarterly Journal of Economics, Journal of Business, and Management Science. Professor Weigelt has won numerous teaching awards, most recently the Undergraduate Division Excellence in Teaching Award and the “Tough, but I will thank you in 5 years” Award. Neil A. Doherty (Ph.D. Cranfield Institute) is the Frederick H. Ecker Professor of Insurance and Risk Management at the Wharton School of Business, the University of Pennsylvania. He is an internationally recognized expert in corporate risk management, and is the author of Integrated Risk Management (McGraw-Hill, 2000). Professor Doherty has also won numerous teaching awards. The late Edwin Mansfield was for many years a distinguished professor of economics at the University of Pennsylvania. He was an internationally recognized expert in the economics of technology and industrial organization. His numerous texts, all published by W.W. Norton, have sold millions of copies around the world. In 1979, when Sino-American scientific agreements were finally reached, Mansfield was the first American economist to lecture in the People's Republic of China.

• Part 1: The Need for A GuideChapter 1: Introduction Part 2: The Nature of MarketsChapter 2: Demand Theory Chapter 3: Consumer Behavior and Rational Choice Chapter 4: Estimating Demand FunctionsPart 3: Production and Cost Chapter 5: Production Theory Chapter 6: The Analysis Of CostsPart 4: Market Structure and Simple Pricing Strategies Chapter 7: Perfect Competition Chapter 8: Monopoly and Monopolistic CompetitionPart 5: Sophisticated Market PricingChapter 9: Managerial Use of Price DiscriminationChapter 10: Bundling and Intrafirm PricingPart 6: The Strategic World of ManagersChapter 11: Oligopoly Chapter 12: Game Theory Chapter 13: AuctionsPart 7: Risk, Uncertainty, and IncentivesChapter 14: Risk Analysis Chapter 15: Principal–Agent Issues and Managerial Compensation Chapter 16: Adverse SelectionPart 8: Government Action and Managerial BehaviorChapter 17: Government and Business Chapter 18: Optimization TechniquesAppendix A: Technological Change and Industrial Innovation Appendix B: Business and Economic Forecasting Appendix C: Discounting and Present Values Appendix D: Answers to Select End-of-Chapter ProblemsAppendix E: TablesIndex