PMBA 6313 Managerial Economics and Decision-Making
Managerial economics and decision-making applies economics, strategy, and critical thinking processes to solve real-world problems in business. The course begins by introducing students to utility-maximization theory, production, cost, and institutional economic theory to explain how individuals and organizations make decisions in different types of market structures. Special emphasis is placed on the effect that the competitive environment and the role of incentives have on policies regarding price, output, and strategy. Strategic decision-making is further broken down using game theory, Porter’s five forces analysis, and Porter’s four corners analysis. Strategies to get employees and business units to work in the firm’s best interests will also be reviewed. Finally, traditional economics is elaborated upon to review problem-solving models that reduce the negative effects of cognitive biases and decision-making traps.