Managerial Econ – Cotrugli

Course outline: Managerial Economics (Cotrugli) January/February 2018

Background readings:

The textbook is Markets for Managers by Anthony J. Evans (Wiley, 2014).

I wrote it specifically for this course and all students are advised to read it in conjunction with the lectures. In addition, the website provides a number of interactive features including videos. More details are here:

The final exam will be based on discussion questions.

There are plenty of other good textbooks on the market. I also recommend Managerial Economics by Luke M. Froeb, Brian T. McCann, Michael R. Ward and Mikhael Shor (Thomson Southwestern 3rd edition, 2013) and A Concise Guide to Macroeconomics by David Moss (Harvard Business School Press, 2007).

Course handouts: download here (zip)

Day 1

1. Incentives matter*

2. Understanding cost*

3. Auctions*

Hild, M., Dwidevy, A., and Raj, A., “The Biggest Auction Ever: 3G Licensing in Western Europe”, Darden Business Publishing, 2004 (£)

4. Adverse Selection

5. Prediction markets

Coles, Peter, Lakhani, Karim and McAfee, Andrew, “Prediction Markets at Google” Harvard Business School 9-607-088, August 20th 2007 (£)

Day 2

6. Monetary policy*

Video: Economic Prediction, January 2018

Video: “An introduction to the Dynamic AD-AS model“, September 2014

Video: “The four-fold path to monetary credibility“, July 2016

Video: “Optimal Currency Areas“, March 2017

7. Fiscal policy*

8. International Economics

Evans, Anthony J., “Josko Joras (A)”, December 2012

9. Behavioural Economics*

“Sun: A CEO’s Last Stand”, Business Week, July 26th 2004 (£)

10. Macro Policy Workshop

Evans, Anthony J., “Macro Policy Workshop”, March 2018

Choose your own financial crisis

Day 3

11. Probability theory

Krasker, William, “Freemark Abbey Winery”, Harvard Business School Case No. 9-181-027, March 24th 1994 (£)

12. Confidence intervals and significance testing*

Evans, Anthony J., “Taxi for Professor Evans” June 2018

Seeing Theory: Statistical Inference

13. Correlation and linear regression*

Evans, Anthony J., “The Suitcase Case” June 2018

Seeing Theory: Linear Regression

14. QM case workshop

15. Review session


Sessions marked with an asterix (*) have a lecture handout available in advance, which can be downloaded.

Cases marked with a pound sign (£) are available through the Programme Office.

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