Managerial economics a problem solving approach

Title Page
Copyright Page
Brief Contents
Contents
Preface: Teaching Students to Solve Problems
Section I: Problem Solving and Decision Making
	Chapter 1: Introduction: What This Book Is About
		1.1 Using Economics to Solve Problems
		1.2 Problem-Solving Principles
		1.3 Test Yourself
		1.4 Ethics and Economics
		1.5 Economics in Job Interviews
		Summary & Homework Problems
		End Notes
	Chapter 2: The One Leson of Busines
		2.1 Capitalism and Wealth
		2.2 Does the Government Create Wealth?
		2.3 How Economics Is Useful to Business
		2.4 Wealth Creation in Organizations
		Summary & Homework Problems
		End Notes
	Chapter 3: Benefits, Costs, and Decisions
		3.1 Background: Variable, Fixed, and Total Costs
		3.2 Background: Accounting versus Economic Profit
		3.3 Costs Are What You Give Up
		3.4 Sunk-Cost Fallacy
		3.5 Hidden-Cost Fallacy
		3.6 A Final Warning
		Summary & Homework Problems
		End Notes
	Chapter 4: Extent (How Much) Decisions
		4.1 Fixed Costs Are Irrelevant to an Extent Decision
		4.2 Marginal Analysis
		4.3 Deciding between Two Alternatives
		4.4 Incentive Pay
		4.5 Tie Pay to Performance Measures That Reflect Effort
		4.6 Is Incentive Pay Unfair?
		Summary & Homework Problems
		End Notes
	Chapter 5: Investment Decisions: Look Ahead and Reason Back
		5.1 Compounding and Discounting
		5.2 How to Determine Whether Investments Are Profitable
		5.3 Break-Even Analysis
		5.4 Choosing the Right Manufacturing Technology
		5.5 Shut-Down Decisions and Break-Even Prices
		5.6 Sunk Costs and Post-Investment Hold-Up
		Summary & Homework Problems
		End Notes
Section II: Pricing, Costs, and Profits
	Chapter 6: Simple Pricing
		6.1 Background: Consumer Values and Demand Curves
		6.2 Marginal Analysis of Pricing
		6.3 Price Elasticity and Marginal Revenue
		6.4 What Makes Demand More Elastic?
		6.5 Forecasting Demand Using Elasticity
		6.6 Stay-Even Analysis, Pricing, and Elasticity
		6.7 Cost-Based Pricing
		Summary & Homework Problems
		End Notes
	Chapter 7: Economies of Scale and Scope
		7.1 Increasing Marginal Cost
		7.2 Economies of Scale
		7.3 Learning Curves
		7.4 Economies of Scope
		7.5 Diseconomies of Scope
		Summary & Homework Problems
		End Notes
	Chapter 8: Understanding Markets and Industry Changes
		8.1 Which Industry or Market?
		8.2 Shifts in Demand
		8.3 Shifts in Supply
		8.4 Market Equilibrium
		8.5 Predicting Industry Changes Using Supply and Demand
		8.6 Explaining Industry Changes Using Supply and Demand
		8.7 Prices Convey Valuable Information
		8.8 Market Making
		Summary & Homework Problems
		End Notes
	Chapter 9: Market Structure and Long-Run Equilibrium
		9.1 Competitive Industries
		9.2 The Indifference Principle
		9.3 Monopoly
		Summary & Homework Problems
		End Notes
	Chapter 10: Strategy: The Quest to Kep Profit from Eroding
		10.1 A Simple View of Strategy
		10.2 Sources of Economic Profit
		10.3 The Three Basic Strategies
		Summary & Homework Problems
		End Notes
	Chapter 11: Foreign Exchange, Trade, and Bubles
		11.1 The Market for Foreign Exchange
		11.2 The Effects of a Currency Devaluation
		11.3 Bubbles
		11.4 How Can We Recognize Bubbles?
		11.5 Purchasing Power Parity
		Summary & Homework Problems
		End Notes
Section III: Pricing for Greater Profit
	Chapter 12: More Realistic and Complex Pricing
		12.1 Pricing Commonly Owned Products
		12.2 Revenue or Yield Management
		12.3 Advertising and Promotional Pricing
		12.4 Psychological Pricing
		Summary & Homework Problems
		End Notes
	Chapter 13: Direct Price Discrimination
		13.1 Why (Price) Discriminate?
		13.2 Direct Price Discrimination
		13.3 Robinson-Patman Act
		13.4 Implementing Price Discrimination
		13.5 Only Schmucks Pay Retail
		Summary & Homework Problems
		End Notes
	Chapter 14: Indirect Price Discrimination
		14.1 Indirect Price Discrimination
		14.2 Volume Discounts as Discrimination
		14.3 Bundling Different Goods Together
		Summary & Homework Problems
		End Notes
Section IV: Strategic Decision Making
	Chapter 15: Strategic Games
		15.1 Sequential-Move Games
		15.2 Simultaneous-Move Games
		15.3 Prisoners’ Dilemma
		15.4 Other Games
		Summary & Homework Problems
		End Notes
	Chapter 16: Bargaining
		16.1 Strategic View of Bargaining
		16.2 Nonstrategic View of Bargaining
		16.3 Conclusion
		Summary & Homework Problems
		End Note
Section V: Uncertainty
	Chapter 17: Making Decisions with Uncertainty
		17.1 Random Variables and Probability
		17.2 Uncertainty in Pricing
		17.3 Data-Driven Decision Making
		17.4 Minimizing Expected Error Costs
		17.5 Risk versus Uncertainty
		Summary & Homework Problems
		End Notes
	Chapter 18: Auctions
		18.1 Oral Auctions
		18.2 Second-Price Auctions
		18.3 First-Price Auctions
		18.4 Bid Rigging
		18.5 Common-Value Auctions
		Summary & Homework Problems
		End Notes
	Chapter 19: The Problem of Adverse Selection
		19.1 Insurance and Risk
		19.2 Anticipating Adverse Selection
		19.3 Screening
		19.4 Signaling
		19.5 Adverse Selection and Internet Sales
		Summary & Homework Problems
		End Notes
	Chapter 20: The Problem of Moral Hazard
		20.1 Introduction
		20.2 Insurance
		20.3 Moral Hazard versus Adverse Selection
		20.4 Shirking
		20.5 Moral Hazard in Lending
		20.6 Moral Hazard and the 2008 Financial Crisis
		Summary & Homework Problems
		End Notes
Section VI: Organizational Design
	Chapter 21: Geting Employees to Work in the Firm’s Best Interests
		21.1 Principal–Agent Relationships
		21.2 Controlling Incentive Conflict
		21.3 Marketing versus Sales
		21.4 Franchising
		21.5 A Framework for Diagnosing and Solving Problems
		Summary & Homework Problems
		End Notes
	Chapter 22: Geting Divisions to Work in the Firm’s Best Interests
		22.1 Incentive Conflict between Divisions
		22.2 Transfer Pricing
		22.3 Organizational Alternatives
		22.4 Budget Games: Paying People to Lie
		Summary & Homework Problems
		End Notes
	Chapter 23: Managing Vertical Relati onships
		23.1 How Vertical Relationships Increase Profit
		23.2 Double Marginalization
		23.3 Incentive Conflicts between Retailers and Manufacturers
		23.4 Price Discrimination
		23.5 Antitrust Risks
		23.6 Do Buy a Customer or Supplier Simply Because It Is Profitable
		Summary & Homework Problems
		End Notes
Section VII: Wrapping Up
	Chapter 24: Test Yourself
		24.1 Should You Keep Frequent Flyer Points for Yourself?
		24.2 Should You Lay Off Employees in Need?
		24.3 Manufacturer Hiring
		24.4 American Airlines
		24.5 Law Firm Pricing
		24.6 Should You Give Rejected Food to Hungry Servers?
		24.7 Managing Interest-Rate Risk at Banks
		24.8 What You Should Have Learned
Epilogue: Can Those Who Teach, Do?
Glossary
Index