Econ for Managers – MIM

Course outline: Economics for Managers (MIM) 2016/17

Course textbook:

Course handouts: download here (zip)

Problem set: download here.

1. Consumer behaviour and basic review

1a. Max U
Evans, A.J., Maximilian Untergrundbahn, January 2013
Instructions: Complete the assignment questions

1b. Course Introduction

2. Supply decisions

2a. Cost curves*
Evans, A.J., La Marmotte, January 2012
Instructions: Complete Exhibit 1 and provide suggestions for the two key decisions

Video: “The Planning Horizon“, June 2016

2b. Economies of scale
Rivkin, J.W., “Dogfight over Europe: Ryanair (A)” Harvard Business School case no. 9-700-115, November 21st 2007 (£)

Discussion question: What are some sources of economies of scale? How do they apply to British Airways in 1986?

3. Microeconomics and strategy

3a. Introduction to Game Theory*

Video: “Game Theory“, February 2015

3b. Oligopolistic competition

4. Competition and market design

4a. Competition and the market process*

4b. Auctions
Hild, M., Dwidevy, A., and Raj, A., (2004) “The Biggest Auction Ever: 3G Licensing in Western Europe”, Darden Business Publishing (£)

Discussion question: What are the alternatives to auctions?

5. Asymmetric information

5a. Signalling*
Spence, M., (1973). “Job Market Signaling“. Quarterly Journal of Economics 87(3):355–374 (£)

Video: “Econ Duel: Is Education Signaling or Skill Building?” Marginal Revolution, March 2016


6. National income accounting

6a. Economic growth*
Solow, R., (1956) “A Contribution to the Theory of Economic Growth” The Quarterly Journal of Economics, 70(1):65-94 (£)

Video: “Growth is like an iPhone“, June 2016

6b. Capital theory*
James, D.N., (2002) “The Trouble I’ve Seen” Harvard Business Review

7. Monetary policy

7. Monetary policy*
Video: An Introduction to the Dynamic AD-AS Model”, September 2014

8. Fiscal policy

8. Fiscal policy*

9. Financial crises

9a. Banking crises*
Diamond, D.W., and Dybvig, P.H., (1983) “Bank Runs, Deposit Insurance, and Liquidity“, Journal of Political Economy, 91(3):401-419 (£)

9b. Debt crises

Blustein, P., “And the Money Kept Rolling In” Public Affairs, 2005 (pp.39-60) (£)

Discussion question: As of July 1998 should the IMF suspend their program in Argentina, or continue their support?

10. European and global competitiveness

10a. Foreign investment and competitiveness
Porter, M., and Ketels, C., “Indonesia: Attracting foreign investment” Harvard Business School case no. 9-708-420, January 11th 2013 (£)

Evans, A.J., “Foreign Investment in Indonesia“, May 2016



Sessions marked with an asterix (*) have a lecture handout available in advance.

Cases marked with a pound sign (£) are either available via Blackboard or through the library.