AEM 4100 - Applied Managerial Economics

Fall. 3 credits. Letter grades only (no audit).

Prerequisite: AEM 2600 or ECON 3030 or equivalent.

T. Alexander.

Strategic management of businesses. Quantitative market analysis; costs, production processes, and firm organization; principle
agent problems, market structure, pricing strategies.

Outcome 1: Demand: Students will have an in depth understanding of markets and the importance of elasticities (price, income, advertising)and be able to utilize this knowledge for proper managerial decisions.

Outcome 2: Estimation: Students will be able to formulate and estimate simple statistical relations and interpret the output to improve managerial decisions.

Outcome 3: Input Usage: Students will be able to articulate the different aspects of hiring inputs in the short run and the long run.

Outcome 4: Principal Agent Issues: Students will be able to discuss the importance of tying pay to performance, but also the issues that arise from variable compensation schemes.

Outcome 5: Pricing Strategies: Students will be able to describe and implement various pricing strategies, including optimal markups, optimal price, types of price discrimination, and transfer pricing, to name a few.