Fordham University, Gabelli School of Business Managerial Economics ONLINE COURSE INSTRUCTOR: Mario J. DiFiore, PhD TEXTBOOK: Managerial Economics in a Global Economy, Ninth Edition AUTHOR: Dominick Salvatore SIMULATION: Economics-games.com OFFICE: Hughes Hall Room 517, RH Campus METHODOLOGY 4 Week, Asynchronous Course CONTACT 718.817.4109 AND difiore@fordham.edu ____________________________________________________ Course Description: Managerial Economics effectively applies the concepts of Microeconomics to managerial decision making within the firm. The tools, strategies and analytical techniques associated with Managerial Economics are used for making appropriate decisions in the areas of assessing demand, determining production, costs, pricing, forecasting and even in areas of advertising and distribution, among many others. Through conceptually exploring microeconomics in the course introduction, students will then focus on demand, the various components and types of demand, and demand analysis. After a deeper understanding of demand, students then progress through the analytical tools and strategies in economics to determine and forecast optimum and appropriate production, cost, and product pricing while understanding the various market structures in which these decisions are made. An application of macroeconomic policy will also illustrate its impact upon the business environment and managerial decision making. The course incorporates lecture, case studies, tests and assessments, and a separate computer-based simulation to bring theory and concept directly to applied practice. Course Objectives: Upon completion of this course, students should be able to: Demonstrate knowledge of Managerial Economics topics and concepts. Apply research in Managerial Economics to explain demand, cost, pricing, and forecasting as applied to decision making in both the private and public sectors. Identify and apply the concepts of Managerial Economics in order to make management and operational decisions. Understand the regulatory expectations and market structure environment in which Managerial Economics decisions are made. Apply analytical tools and skills associated with Managerial Economics in a computerbased online simulation game. Recommended Supplementary Reading: Students should regularly read at least one of the following financial periodicals: Wall Street Journal, New York Times, Financial Times, and the Economist, among others. Computer-Based Online Simulation Game: The simulation games contained in Economicsgames.com are designed for students to apply Managerial Economics tools, strategies, and skills developed in the course in order to make managerial decisions that directly affect the success of a company. Students will be required to run 2 simulations individually and produce one written report of their outcomes. The report should include a short description of the simulation, the specific problem that they are to solve (one for each simulation), a detailed reflection of how they applied the appropriate skills, tools, and strategies in their managerial decision making for each simulation. Assessment: Assessment 1 (See Pre-Reading Section Below) Due First Week of Class (Stengl Pre-Readings only) 15% Simulations and Simulation Report 40% Sim A due end of Week 3; Sim B due end of Week 4 3-5 Page Report on both Sims due end of Week 4 Hind Oil Case Assessment 2 (Final Exam) 35% Due at the end of Week 4 Participation and Engagement (questions addressed to the professor, articles sent to the professor etc) 10% Grading Policy: A = 94 to 100 B+ = 86 to 89 C+ = 76 to 79 D = 61 to 69 AB C F = 90 to 93 = 82 to 85 B- = = 72 to 75 C- = = 60 and below 80 to 81 70 to 71 Course Modules PART ONE INTRODUCTION 1: The Nature and Scope of Managerial Economics 2: Demand, Supply, and Equilibrium Analysis 3: Optimization Techniques and New Management Tools PART TWO DEMAND ANALYSIS 4: Demand Theory; 5: Demand Estimation: 6: Demand Estimation; 7: Demand Forecasting PART THREE PRODUCTION AND COST ANALYSIS 7: Production Theory and Estimation 8: Cost Theory and Estimation PART FOUR MARKET STRUCTURE AND PRICING PRACTICES 9: Market Structure: Perfect Competition, Monopoly, and Monopolistic Competition 10: Oligopoly and Firm Architecture 11: Game Theory and Strategic Behavior; 12: Pricing Practices PART FIVE REGULATION, RISK ANALYSIS, AND CAPITAL BUDGETING 13: Regulation and Antitrust: The Role of Government in the Economy 14: Risk Analysis 15: Long-Run Investment Decisions: Capital Budgeting Course Structure and Methodology This class is a pre-requisite for the MS in Finance Degree Program as well as others. Therefore, the course consists of 4 main elements 1. Pre-readings to prepare for the course. 2. Online asynchronous lectures and case study exercises. 3. Economics-games.com Simulation Games. The largest single block of points for the course grade is from your Simulation Game experience. Each student will engage in multiple Managerial Economics simulation game where your understanding and ability to apply your understanding of course concepts will be practiced in a widely used simulation game. 4. Assessments as noted above. Pre-Course Readings Please Complete Readings Below By The First Day of Class. Please be sure to include for submission a 5 page, double spaced, briefing of numbers 1 and 2 below. The Case Study will be used during the remainder of the class. 1. Introduction to Managerial Economics, Donald Siegel, Business Expert Press (hbsp.harvard.edu) 5 pages…include in your 5 page briefing due first day of class. 2. Managerial Economics: Concepts and Principles Chapter 3, Donald Siegel, Business Expert Press (hbsp.harvard.edu) 18 pages……include in your 5 page briefing due first day of class 3. Case Study: Hind Oil Industries: Demand Analysis, Abhishek Rohit, Debhama. A 3 page double spaced paper outlining the specific problem in the case and, a briefing of the case, and an outlined solution. This is due at the end of the third week of the course. Mario J. DiFiore, PhD is Senior Assistant Dean and Director of Student Investment Funds and Finance Applied Learning at the Gabelli School of Business, Fordham University; and Editor of the international, peer-reviewed Journal of Financial Compliance. Dr. DiFiore also serves as Director of the Compliance Risk Management program for Euromoney. Dr. DiFiore joined Fordham’s GSB Administration, July 2010 after a 25 year career on Wall Street and the Federal Reserve Bank of New York. Prior to Fordham, he was Director and Co-Global Head of Deutsche Bank AG’s Compliance and Risk Training Group for the Commercial and Investment Bank, as well as Head of Americas Compliance Training. He was responsible for one of the largest financial regulation and Compliance training programs on Wall Street. In addition to his career at Deutsche Bank AG, Dr. DiFiore was an Assistant Director at Ten Squared LLP, a medium-sized hedge fund, as well as the Head of Professional and Continuing Education for Prudential Securities. Dean DiFiore began his career with the Federal Reserve Bank of New York where he spent over 12 years in the Research and Statistics, International Affairs, and Public Information areas. While at the Federal Reserve, Dean DiFiore was responsible for the management, production, distribution, and communication of official Federal Reserve statistical data and reporting for the weekly Fed press briefing: one of the broadest and most comprehensive assessments of US macroeconomic and financial data, globally. In addition to teaching at Fordham University’s Gabelli School of Business since 2002, Dean DiFiore has taught Finance, Economics, and Investment Management courses at New York University, Baruch College, Pace University, SUNY Empire State College, and the Mountbatten Institute (St. Mary’s College, U.K.). He is a frequent speaker at industry events and at major corporations. As an international consultant in the areas of Risk, Compliance, Behavioral Finance, and Financial Markets, he has taught in Europe, Asia, Africa, North America, and the Middle East. Dean DiFiore received his MBA and BA (summa cum laude) from Fordham University and a PhD in Financial Economics from the NEOMA Business School (Paris, France).