Managerial Economics
Instructors :
Schedule :
Dr : Ahmed F. Darwish / Mrs. Azza M. Hedia
Tuesday 9.00 : 11.00 A.M.
Course Objectives
This Course is designed to achieve the following objectives:
(i) Understand The economics’ view of behavior
(ii) Understand how organizational architecture affects company’s performance
(iii)Understand Different ways of evaluating performance
(iv) Understand how to design incentive plans
(v) Understand how self interested parties within organizations interact and how
corporate governance mechanisms control these interactions
(vi) Understand the economics of strategy : game theory
(vii) Understand the conventional topics of managerial economics such as :
a. Understand how a market economy functions.
b. Understand the theory of product demand.
c. Understand of the theory of production and cost
d. Understand of estimating cost functions
e. Understand of alternative market structures and pricing practices
In addition to the above, this course also seeks to develop your skills in:
 Analytical thinking.
 (viii) Problem solving.
Course Description
The course seeks to provide a solid conceptual framework for analyzing
organizational problems and structuring a more effective organizational
architecture. It also provides basic material on managerial economics through
discussing how it can be used for making operational decisions- for example, input,
output, and pricing decisions. This material will be used also to supply an
understanding of how markets operates; that is important for making good
organizational decisions
To do this we will apply microeconomic analysis that you learned in Principles of
Microeconomics to study such business topics
Text book
Managerial Economics & Organizational Architecture, 4th. Edition 2007,
McGRAW – HILL, International Edition.
By: James A. Brickly, Clifford W. Smith, Jr., Jerold M. Zimmerman.
Articles :
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Course Topics
Week
1
2
3
4
5
6
7
8
9
10
11
12
13
Topic
Part 1 : Basic Concepts
- Economists’ view of Behavior
- Markets, Organizations, and the role of knowledge
Part 2 : Managerial Economics
- Demand
- Production & Costs
Continuous Assessment
- Market Structure
- Pricing with Market Power
- Economics of Strategy : Creating & Capturing Value
Continuous Assessment
- Economics of Strategy: Game Theory
- Incentive Conflicts and Contracts
Mid – Term Exam
Part 3 : Designing Organizational Architecture
- Organizational Architecture
- Decision Rights: The Level of Empowerment
- Decision Rights: bundling Tasks into Jobs and
Subunits
- Attracting and retaining qualified Employees
- Incentive Compensation
Continuous Assessment
- Individual Performance Evaluation
- Divisional Performance Evaluation
Part 4 : Applications of Organizational Architecture
- Corporate Governance
Continuous Assessment
- Vertical integration and Outsourcing
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Chapter
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
14
15
16
- Leadership : Motivating Change Within Organization
Revision
Final Exam
20
Grading System
Continuous Assessment (4 assessments) *
20 %
Mid term Exam
20 %
Final Exam
60 %
Teaching Philosophy
The teaching method will be a combination of lecture, class discussions assigned topics, and
explanation. Individual participation by students in class room is strongly encourages. The
student is expected to read the materials prior to attending the class.
Please Note
1- To be allowed to set the exam you must attend 75% of lectures and tutorials.
2- Late submission of assignments are penalized
3- Please study the regulations thoroughly or if in doubt ask the instructor
With our Best wishes
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