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Managerial Economics: Problem-Solving in a Digital World 2nd Revised edition [Pehme köide]

  • Formaat: Paperback / softback, 808 pages, kõrgus x laius x paksus: 245x190x38 mm, kaal: 1710 g, Worked examples or Exercises
  • Ilmumisaeg: 13-Jan-2022
  • Kirjastus: Cambridge University Press
  • ISBN-10: 1108984509
  • ISBN-13: 9781108984508
Teised raamatud teemal:
Managerial Economics: Problem-Solving in a Digital World 2nd Revised editionSuurem pilt
  • Formaat: Paperback / softback, 808 pages, kõrgus x laius x paksus: 245x190x38 mm, kaal: 1710 g, Worked examples or Exercises
  • Ilmumisaeg: 13-Jan-2022
  • Kirjastus: Cambridge University Press
  • ISBN-10: 1108984509
  • ISBN-13: 9781108984508
Teised raamatud teemal:
Püsilink: https://www.kriso.ee/db/9781108984508.html
Märksõnad:
Managerial economics, meaning the application of economic methods in the managerial decision-making process, is a fundamental part of any business or management course. The current business environment presents managers with increasingly difficult decisions, amidst the Covid-19 pandemic and associated lockdowns, as well as the digital revolution and improved technology. Now in its second edition, this textbook features a new focus on how managerial economics has been transformed by the increasing importance of digitization within both the workplace and wider economy. It also features a new chapter on consumer theory, which emphasizes psychological factors and behavioural economics. Wilkinson adapts a user-friendly problem-solving approach to take the reader in gradual steps from simple problems through increasingly difficult material to complex case studies, demonstrating how to apply the principles of managerial economics to real-life situations. This book will be invaluable to business and economics students at both undergraduate and graduate levels.

Now in its second edition, this textbook features a new focus on how managerial economics has been transformed by the digital revolution. Wilkinson adapts a user-friendly problem-solving approach to take the reader from simple problems through complex case studies and demonstrates real-life applications.

Arvustused

'As a second edition this is a virtually new book of some 776 pages. This reflects the growth of managerial economics itself in recent years. It defines and uses digitization where big data and other advances reflect the increasing ability to connect people, devices and objects anywhere. A distinctive feature of this much expanded new edition is the plethora of case studies which will not date. Each chapter expands the fundamental principles, clearly using mathematics and statistics where appropriate. The textbook package includes chapter slides, worked problems, further exercises and an instructors manual. It is the complete textbook which will endure for a long time to come. Each chapter has case studies and exercises which are up to date and can be adapted and expanded. It is managerial economics at its best, reflecting the latest advances in economic theory and behavioural economics. Nor are important aspects of macroeconomics neglected in this magisterial and user friendly book.' John Mark, Kings College London, University of London

Muu info

A user-friendly problem-solving approach to managerial economics, with a focus on the transformative effects of the digital revolution.
List of Figures xxii
List of Tables xxv
Preface xxvii
Acknowledgements xxxiv
Part I Introduction
1 Nature, Scope and Methods of Managerial Economics
3(30)
1.1 Introduction
4(6)
Case Study 1.1 Autonomous Vehicles - the Creation of New Ecosystems
5(5)
1.2 Definition and Relationships with Other Disciplines
10(3)
1.2.1 Definition
10(1)
1.2.2 Relationship with Economic Theory
11(1)
1.2.3 Relationship with Decision Sciences
12(1)
1.2.4 Relationship with Business Functions
13(1)
1.3 Elements of Managerial Economics
13(2)
1.3.1 Subject Areas and Relationships
13(1)
1.3.2 Presentation
14(1)
1.4 Methods
15(4)
1.4.1 Scientific Theories
15(2)
1.4.2 Learning Economics
17(1)
1.4.3 Tools of Analysis: Demand and Supply
18(1)
1.5 Themes
19(10)
1.5.1 Digitization
19(4)
Case Study 1.2 Amazon - Digital King
20(3)
1.5.2 Behavioural Factors
23(1)
1.5.3 Globalization
24(16)
Case Study 1.3 Facebook - Where's the Product?
24(5)
Discussion of Case Study 1.1
29(1)
Summary
30(1)
Review Questions
31(1)
References
32(1)
2 The Theory of the Firm
33(64)
2.1 Introduction
34(6)
Case Study 2.1 Failure at Carillion
35(5)
2.2 The Nature of the Firm
40(9)
2.2.1 Economic Organizations
40(2)
2.2.2 Transaction Cost Theory
42(1)
2.2.3 Motivation Theory
43(3)
2.2.4 Property Rights Theory
46(3)
2.3 The Basic Profit-Maximizing Model
49(6)
2.3.1 Assumptions
50(3)
2.3.2 Limitations
53(1)
2.3.3 Usefulness
54(1)
2.4 The Agency Problem
55(13)
2.4.1 Contracts and Bounded Rationality
55(1)
2.4.2 Hidden Information
56(2)
2.4.3 Hidden Action
58(1)
2.4.4 Control Measures
59(4)
2.4.5 Limitations of the Agency Model
63(5)
Case Study 2.2 Executive Pay Disparities
64(3)
Case Study 2.3 Ryanair Boss Pay Deal Unpopular with Shareholders
67(1)
2.5 Measurement of Profit
68(5)
2.5.1 Nature of Measurement Problems
68(2)
2.5.2 Efficient Markets Hypothesis
70(1)
2.5.3 Limitations of the EMH
71(2)
2.6 Risk and Uncertainty
73(3)
2.6.1 Attitudes to Risk
74(1)
2.6.2 Risk and Objectives
75(1)
2.6.3 Risk and the Agency Problem
75(1)
2.7 Multi-Product Strategies
76(2)
2.7.1 Product Line Profit Maximization
77(1)
2.7.2 Product Mix Profit Maximization
77(1)
2.8 Psychological Biases
78(5)
2.8.1 Self-Evaluation Bias
78(1)
2.8.2 Conformity Bias
79(1)
2.8.3 Status Quo Bias
79(1)
2.8.4 Hindsight Bias
79(4)
Case Study 2.4 Debiasing Corporate Decision-Making
79(4)
2.9 Conclusion
83(5)
2.9.1 The Public Sector and Non-Profit Organizations
83(1)
2.9.2 Satisficing
84(1)
2.9.3 Surveys of Business Objectives
84(1)
2.9.4 Ethics
85(1)
2.9.5 Profit Maximization Revisited
86(2)
Discussion of Case Study 2.1
88(1)
Summary
89(2)
Review Questions
91(1)
References
91(6)
Part II Demand Analysis
3 Consumer Theory
97(52)
3.1 Introduction
98(3)
Case Study 3.1 The Psychology of Supermarket Selling
99(2)
3.2 The Neoclassical Model of Decision-Making
101(12)
3.2.1 Assumptions and Axioms
101(2)
3.2.2 Indifference Curve Analysis
103(4)
3.2.3 Derivation of the Demand Curve
107(1)
3.2.4 Income and Substitution Effects
107(3)
3.2.5 Expected Utility Theory
110(3)
3.3 Limitations of the Neoclassical Model
113(2)
3.3.1 Narrow Focus
113(1)
3.3.2 Anomalies in EUT
113(1)
3.3.3 Biases
114(1)
3.4 Biases in Expectations
115(6)
3.4.1 Estimating Probabilities
115(2)
3.4.2 Self-Evaluation Bias
117(4)
Case Study 3.2 Financial Crises
118(3)
3.5 Biases in Estimating and Maximizing Utilities
121(6)
3.5.1 Lack of Stable, Well-Formed Preferences
122(1)
3.5.2 Anchoring Effects
122(1)
3.5.3 Framing Effects
123(1)
3.5.4 Menu Effects
123(1)
3.5.5 Visceral Factors
124(1)
3.5.6 Social Preferences
125(2)
3.6 Biases in Discounting
127(3)
3.6.1 Exponential Discounting
127(1)
3.6.2 Inconsistent Time Preferences
128(1)
3.6.3 Hyperbolic Discounting
128(1)
3.6.4 Modifying the Instantaneous Utility Function
129(1)
3.7 Alternative Theories of Decision-Making
130(13)
3.7.1 Conventional Modifications to EUT
130(1)
3.7.2 Prospect Theory
130(3)
3.7.3 Mental Accounting
133(1)
3.7.4 Limitations of PTMA Models
134(1)
3.7.5 Other Behavioural Theories
134(1)
3.7.6 Beyond Behavioural Theories
134(22)
Case Study 3.3 The Obesity Problem
136(7)
Discussion of Case Study 3.1
143(1)
Summary
144(1)
Review Questions
144(1)
References
145(4)
4 Demand Theory
149(58)
4.1 Introduction
150(6)
Case Study 4.1 The Demand for Higher Education in England
150(6)
4.2 Definition and Representation
156(7)
4.2.1 Meaning of Demand
156(1)
4.2.2 Tables, Graphs and Equations
157(3)
4.2.3 Interpretation of Equations
160(2)
4.2.4 Demand and Revenue
162(1)
4.3 Factors Determining Demand
163(13)
4.3.1 Controllable Factors
163(2)
4.3.2 Uncontrollable Factors
165(4)
4.3.3 Demand and Quantity Demanded
169(7)
Case Study 4.2 How Do Sugar Taxes Affect Demand?
170(6)
4.4 Elasticity
176(13)
4.4.1 Price Elasticity of Demand
176(8)
4.4.2 Promotional Elasticity of Demand
184(1)
4.4.3 Income Elasticity of Demand
185(2)
4.4.4 Cross-Elasticity of Demand
187(2)
4.5 A Problem-Solving Approach
189(12)
4.5.1 Examples of Solved Problems
190(26)
Case Study 4.3 The Demand for Cigarettes in Australia
196(5)
Discussion of Case Study 4.1
201(1)
Summary
202(1)
Review Questions
203(1)
Problems
203(1)
References
204(3)
5 Demand Estimation
207(62)
5.1 Introduction
209(7)
Case Study 5.1 Estimating the Price Elasticity of Demand for Alcohol
210(6)
5.2 Model Specification
216(2)
5.2.1 Mathematical Models
216(1)
5.2.2 Statistical Models
217(1)
5.3 Data Collection
218(5)
5.3.1 Types of Data
218(1)
5.3.2 Sources of Data
219(2)
5.3.3 Presentation of Data
221(2)
5.4 Simple Regression
223(2)
5.4.1 The OLS Method
223(1)
5.4.2 Application of OLS
224(1)
5.5 Goodness of Fit
225(3)
5.5.1 Correlation
226(1)
5.5.2 The Coefficient of Determination
226(2)
5.6 Power Regression
228(2)
5.6.1 Nature of the Power Model
228(1)
5.6.2 Application of the Model
229(1)
5.7 Forecasting
230(1)
5.7.1 Nature
230(1)
5.7.2 Application
230(1)
5.8 Multiple Regression
231(11)
5.8.1 Nature of the Model
231(1)
5.8.2 Advantages of Multiple Regression
232(1)
5.8.3 Dummy Variables*
233(2)
5.8.4 Mathematical Forms*
235(1)
5.8.5 Interpretation of the Model Results*
236(4)
5.8.6 Selecting the Best Model*
240(2)
Case Study 5.2 The Demand for Coffee
241(1)
5.9 Implications of Empirical Studies
242(2)
5.9.1 The Price-Quality Relationship
242(1)
5.9.2 Lack of Importance of Price
243(1)
5.9.3 Dynamic Relationships
243(1)
5.10 A Problem-Solving Approach
244(5)
5.10.1 Examples of Solved Problems
245(4)
Case Study 5.3 The Sports Connection
247(2)
Appendix A Statistical Inference*
249(9)
A.1 Nature of Inference in the OLS Model
250(1)
A.2 Assumptions
250(1)
A.3 Calculations for Statistical Inference
251(2)
A.4 Consequences of Assumptions
253(2)
A.5 Estimation
255(1)
A.6 Hypothesis Testing
256(1)
A.7 Confidence Intervals for Forecasts
257(1)
Appendix B Problems of the OLS Model*
258(5)
B.1 Specification Error
259(1)
B.2 The Identification Problem
259(1)
B.3 Violation of Assumptions Regarding the Error Term
260(2)
B.4 Multicollinearity
262(1)
Discussion of Case Study 5.1
263(1)
Summary
264(1)
Review Questions
264(1)
Problems
265(1)
References
266(3)
Part III Production And Cost Analysis
6 Production Theory
269(51)
6.1 Introduction
270(4)
Case Study 6.1 The Productivity Puzzle and the Solow Paradox
271(3)
6.2 Basic Terms and Definitions
274(4)
6.2.1 Factors of Production
275(1)
6.2.2 Intangible Factors
276(2)
6.3 Production Functions
278(4)
6.3.1 Fixed Factors
279(1)
6.3.2 Variable Factors
279(1)
6.3.3 The Short Run
279(1)
6.3.4 The Long Run
280(1)
6.3.5 Scale
280(1)
6.3.6 Efficiency
280(1)
6.3.7 Input-Output Tables
281(1)
6.4 The Short Run
282(10)
6.4.1 Production Functions and Marginal Product
282(2)
6.4.2 Derivation of the Short-Run Input-Output Table
284(1)
6.4.3 Increasing and Diminishing Returns
285(1)
6.4.4 Relationships between Total, Marginal and Average Product
286(3)
6.4.5 Determining the Optimal Use of the Variable Input
289(3)
6.5 The Long Run
292(10)
6.5.1 Isoquants
293(1)
6.5.2 The Marginal Rate of Technical Substitution
293(2)
6.5.3 Returns to Scale
295(3)
6.5.4 Determining the Optimal Combination of Inputs
298(4)
6.6 A Problem-Solving Approach
302(13)
6.6.1 Planning
302(1)
6.6.2 Marginal Analysis
303(1)
6.6.3 Evaluating Trade-Offs
304(17)
Case Study 6.2 Fashion Production - the Future Is Fast and Flexible
306(4)
Case Study 6.3 Digital Doctors - an App a Day
310(5)
Discussion of Case Study 6.1
315(1)
Summary
316(1)
Review Questions
317(1)
Problems
318(1)
References
318(2)
7 Cost Theory
320(49)
7.1 Introduction
321(9)
7.1.1 Importance of Costs for Decision-Making
321(5)
Case Study 7.1 Vehicle Manufacturing and Brexit
322(4)
7.1.2 Explicit and Implicit Costs
326(1)
7.1.3 Historical and Current Costs
327(1)
7.1.4 Sunk and Incremental Costs
328(1)
7.1.5 Private and Social Costs
328(1)
7.1.6 Relevant Costs for Decision-Making
329(1)
Case Study 7.2 Brewster Roofing
329(1)
7.1.7 Summary of Cost Concepts
330(1)
7.2 Short-Run Cost Behaviour
330(9)
7.2.1 Classification of Costs
330(1)
7.2.2 Types of Unit Cost
331(1)
7.2.3 Derivation of Cost Functions from Production Functions
332(1)
7.2.4 Factors Determining Relationships with Output
332(4)
7.2.5 Efficiency
336(1)
7.2.6 Changes in Input Prices
337(1)
7.2.7 Different Forms of Cost Functions
337(2)
7.3 Long-Run Cost Behaviour
339(10)
7.3.1 Derivation of Cost Functions from Production Functions*
339(2)
7.3.2 Economies of Scale
341(2)
7.3.3 Diseconomies of Scale
343(1)
7.3.4 Economies of Scope
344(1)
7.3.5 Relationships between Short- and Long-Run Cost Curves
345(3)
7.3.6 Strategy Implications
348(1)
7.4 The Learning Curve
349(2)
7.5 Cost-Volume-Profit Analysis
351(3)
7.5.1 Purpose and Assumptions
351(1)
7.5.2 Break-Even Output
352(1)
7.5.3 Profit Contribution
352(1)
7.5.4 Operating Leverage*
353(1)
7.5.5 Limitations of CVP Analysis
353(1)
7.6 A Problem-Solving Approach
354(8)
7.6.1 Examples of Solved Problems
355(15)
Case Study 7.3 Charging Stations for Electric Vehicles and the Break-Even Problem
360(1)
Case Study 7.4 Converting to LPG: Is It Worth It?
361(1)
Discussion of Case Study 7.1
362(1)
Summary
363(1)
Review Questions
364(1)
Problems
365(2)
References
367(2)
8 Cost Estimation
369(40)
8.1 Introduction
370(7)
8.1.1 Importance of Cost Estimation for Decision-Making
370(3)
Case Study 8.1 Digital Banking and Economies of Scale
371(2)
8.1.2 Types of Cost Scenario
373(1)
8.1.3 Methodology
374(3)
8.2 Short-Run Cost Estimation
377(6)
8.2.1 Types of Empirical Study
377(1)
8.2.2 Problems in Short-Run Cost Estimation
378(3)
8.2.3 Different Forms of Cost Function, Interpretation and Selection
381(1)
8.2.4 Implications of Empirical Studies
382(1)
8.3 Long-Run Cost Estimation
383(12)
8.3.1 Types of Empirical Study
383(1)
8.3.2 Problems in Long-Run Cost Estimation
384(2)
8.3.3 Different Forms of Cost Function
386(1)
8.3.4 Implications of Empirical Studies
386(9)
Case Study 8.2 Estimating Returns to Scale in Airlines
389(3)
Case Study 8.3 Estimating the Costs of Electricity Generation
392(3)
8.4 The Learning Curve
395(3)
8.4.1 Types of Specification
395(1)
8.4.2 Application of the Learning Curve
396(2)
8.4.3 Implications of Empirical Studies
398(1)
8.5 A Problem-Solving Approach
398(3)
8.5.1 Examples of Solved Problems
399(2)
Discussion of Case Study 8.1
401(1)
Summary
402(1)
Review Questions
403(1)
Problems
403(2)
References
405(4)
Part IV Strategy Analysis
9 Market Structure and Pricing
409(50)
9.1 Introduction
410(5)
9.1.1 Characteristics of Markets
411(3)
Case Study 9.1 Competition on the High Street - Higher or Lower Prices?
412(2)
9.1.2 Types of Market Structure
414(1)
9.1.3 Methodology
414(1)
9.2 Perfect Competition
415(9)
9.2.1 Conditions
415(1)
9.2.2 Demand and Supply
416(1)
9.2.3 Graphical Analysis of Equilibrium
417(4)
9.2.4 Algebraic Analysis of Equilibrium
421(1)
9.2.5 Adjustment to Changes in Demand
422(2)
9.3 Monopoly
424(11)
9.3.1 Conditions
424(1)
9.3.2 Barriers to Entry and Exit
425(3)
9.3.3 Graphical Analysis of Equilibrium
428(1)
9.3.4 Algebraic Analysis of Equilibrium
429(1)
9.3.5 Pricing and Price Elasticity of Demand
430(3)
9.3.6 Comparison of Monopoly with Perfect Competition
433(2)
9.4 Monopolistic Competition
435(5)
9.4.1 Conditions
436(1)
9.4.2 Graphical Analysis of Equilibrium
436(1)
9.4.3 Algebraic Analysis of Equilibrium
437(2)
9.4.4 Comparison with Perfect Competition and Monopoly
439(1)
9.4.5 Comparison with Oligopoly
439(1)
9.5 Oligopoly
440(6)
9.5.1 Conditions
440(1)
9.5.2 The Kinked Demand Curve Model
441(2)
9.5.3 Collusion and Cartels
443(3)
9.5.4 Price Leadership
446(1)
9.6 Relationships between Structure, Conduct and Performance
446(6)
9.6.1 Nature of Variables and Measurement
446(1)
9.6.2 Traditional Approach
447(1)
9.6.3 Modern Approach
447(13)
Case Study 9.2 Walmart - Predator or Prey? Part 1 (Pre-Covid)
449(1)
Case Study 9.3 Walmart - Predator or Prey? Part 2 (Post-Covid)
450(2)
9.7 A Problem-Solving Approach
452(2)
Discussion of Case Study 9.1
454(1)
Summary
455(1)
Review Questions
455(1)
Problems
456(1)
References
457(2)
10 Game Theory
459(60)
10.1 Introduction
460(7)
10.1.1 Nature and Scope of Game Theory
461(1)
Case Study 10.1 The Keynesian Beauty Contest
461(1)
10.1.2 Elements of a Game
462(3)
10.1.3 Types of Game
465(2)
10.2 Static Games
467(15)
10.2.1 Equilibrium
467(3)
10.2.2 Oligopoly Models
470(8)
10.2.3 Property Rights*
478(2)
10.2.4 Nash Bargaining
480(2)
Case Study 10.2 Experiments Testing the Cournot Equilibrium
481(1)
10.3 Dynamic Games
482(8)
10.3.1 Equilibrium
482(2)
10.3.2 Strategic Moves and Commitment
484(3)
10.3.3 Stackelberg Oligopoly
487(3)
10.4 Games with Uncertain Outcomes*
490(9)
10.4.1 Mixed Strategies
490(4)
10.4.2 Moral Hazard and Pay Incentives
494(2)
10.4.3 Moral Hazard and Efficiency Wages
496(3)
10.5 Repeated Games*
499(6)
10.5.1 Infinitely Repeated Games
499(5)
10.5.2 Finitely Repeated Games
504(1)
10.6 Behavioural Game Theory
505(7)
10.6.1 Nature and Assumptions
505(1)
10.6.2 Social Preferences and Fairness
506(4)
Case Study 10.3 Ultimate Bargaining Games and Fairness
507(3)
10.6.3 Bounded Rationality and Iterations
510(14)
Case Study 10.4 Signalling and Learning in a Market Entry Game
510(2)
10.7 A Problem-Solving Approach
512(1)
Discussion of Case Study 10.1
513(1)
Summary
514(1)
Review Questions
515(1)
Problems
515(1)
References
516(3)
11 Positioning and Growth Strategy
519(41)
11.1 Introduction
520(4)
Case Study 11.1 Apple and Blackberry - Two Very Different Fruits
521(3)
11.2 Competitive Advantage
524(2)
11.2.1 Nature of Competitive Advantage
524(1)
11.2.2 Value Creation
525(1)
11.3 Market Positioning, Segmentation and Targeting
526(5)
11.3.1 Cost Advantage
527(1)
11.3.2 Benefit Advantage
527(1)
11.3.3 Competitive Advantage, Price Elasticity and Pricing Strategy
528(1)
11.3.4 Segmentation and Targeting
529(2)
11.4 Vertical Integration
531(12)
11.4.1 Nature of Vertical Integration
531(1)
11.4.2 Benefits of Vertical Integration
532(2)
11.4.3 Costs of Vertical Integration
534(1)
11.4.4 Vertical Restrictions
535(4)
11.4.5 Effects of Vertical Restrictions
539(1)
11.4.6 Franchising
540(1)
11.4.7 Trends and Empirical Evidence
540(3)
11.5 Horizontal Integration
543(2)
11.5.1 Nature of Horizontal Integration
543(1)
11.5.2 Benefits of Horizontal Integration
543(2)
11.5.3 Costs of Horizontal Integration
545(1)
11.6 Diversification
545(1)
11.7 Trends and Empirical Evidence
546(9)
Case Study 11.2 Netflixonomics
547(5)
Case Study 11.3 Tesla
552(3)
Discussion of Case Study 11.1
555(2)
Summary
557(1)
Review Questions
558(1)
References
558(2)
12 Marketing Mix Strategy
560(57)
12.1 The Nature of Marketing Mix Decisions
562(2)
Case Study 12.1 Toys "R" Us - Another Retailer Bites the Dust
562(2)
12.2 Price Discrimination
564(9)
12.2.1 Definition and Conditions
564(1)
12.2.2 Types of Price Discrimination
565(3)
12.2.3 Price Discrimination in the European Union
568(1)
12.2.4 Analysis
569(4)
Case Study 12.2 Price Discrimination in Airlines
572(1)
12.3 Multi-Product Pricing
573(6)
12.3.1 Context
573(1)
12.3.2 Demand Interrelationships
573(2)
12.3.3 Production Interrelationships
575(1)
12.3.4 Joint Products
575(4)
12.4 Transfer Pricing
579(5)
12.4.1 Context
579(1)
12.4.2 Products with No External Market
579(4)
12.4.3 Products with Perfectly Competitive External Markets
583(1)
12.4.4 Products with Imperfectly Competitive External Markets
583(1)
12.5 Dynamic Aspects of Pricing
584(1)
12.5.1 Significance of the Product Life Cycle
584(1)
12.5.2 Early Stages of the Product Life Cycle
585(1)
12.5.3 Later Stages of the Product Life Cycle
585(1)
12.6 Psychological Pricing
585(11)
12.6.1 Reference Prices
586(1)
12.6.2 Sales Promotions
587(2)
12.6.3 Lowballing
589(1)
12.6.4 Pricing for Quality
590(1)
12.6.5 Price Bundling
590(2)
12.6.6 Decoy Pricing
592(1)
12.6.7 Disaggregated Pricing
592(1)
12.6.8 Two-Part Tariffs
593(2)
12.6.9 Instalment Plans
595(1)
12.6.10 Renewal Pricing
595(1)
12.6.11 Sound and Round
596(1)
12.7 Advertising
596(8)
12.7.1 Nature, Types and Objectives of Advertising
596(1)
12.7.2 Strategy Variables
597(1)
12.7.3 Content
597(2)
12.7.4 Media Selection
599(1)
12.7.5 Effects of Advertising on Welfare
600(4)
Case Study 12.3 Native Advertising - Are We Being Fooled?
602(2)
12.8 The Marketing Mix*
604(5)
12.8.1 An Approach to Marketing Mix Optimization
604(1)
12.8.2 The Constant Elasticity Model
605(3)
12.8.3 Complex Marketing Mix Interactions
608(1)
Discussion of Case Study 12.1
609(1)
Summary
610(1)
Review Questions
611(1)
Problems
611(2)
References
613(4)
13 Investment Analysis
617(54)
13.1 Introduction
618(9)
Case Study 13.1 HS2 - High-Speed Error?
618(5)
13.1.1 The Nature and Significance of Capital Budgeting
623(1)
13.1.2 Types of Capital Expenditure
624(2)
13.1.3 A Simple Model of the Capital-Budgeting Process
626(1)
13.2 Cash Flow Analysis
627(6)
13.2.1 Identification of Cash Flows
627(1)
13.2.2 Measurement of Cash Flows
628(5)
Case Study 13.2 Investing in a Corporate Fitness Programme
632(1)
13.3 Risk Analysis
633(6)
13.3.1 Nature of Risk in Capital Budgeting
633(1)
13.3.2 Measurement of Risk
634(5)
13.4 The Cost of Capital
639(5)
13.4.1 Nature and Components
639(1)
13.4.2 Cost of Debt
639(1)
13.4.3 Cost of Equity
640(3)
13.4.4 Weighted Average Cost of Capital
643(1)
13.5 Evaluation Criteria
644(10)
13.5.1 Net Present Value
644(1)
13.5.2 Internal Rate of Return
645(1)
13.5.3 Comparison of NPV and IRR
646(1)
13.5.4 Other Criteria
647(1)
13.5.5 Decision-Making under Risk
648(5)
13.5.6 Decision-Making under Uncertainty
653(1)
13.6 The Optimal Capital Budget
654(3)
13.6.1 The Investment Opportunity Schedule
654(1)
13.6.2 The Marginal Cost of Capital Schedule
655(1)
13.6.3 Equilibrium of IOS and MCC
656(1)
13.7 A Problem-Solving Approach
657(5)
Case Study 13.3 5G - Way to Go?
657(5)
Discussion of Case Study 13.1
662(1)
Summary
663(1)
Review Questions
664(1)
Problems
665(1)
References
666(5)
Part V Government Policy
14 Government Policy and Regulation
671(62)
14.1 Introduction
672(5)
Case Study 14.1 Energy Regulation and Nudges
672(3)
14.1.1 Importance of Government Policy
675(1)
14.1.2 Objectives of Government Policy
675(2)
14.2 Market Failure
677(4)
14.2.1 Definition and Types
677(1)
14.2.2 Externalities
678(1)
14.2.3 Public Goods
678(1)
14.2.4 Imperfect Information
679(1)
14.2.5 Transaction Costs
679(1)
14.2.6 Monopolies
680(1)
14.3 Externalities
681(5)
14.3.1 Optimality with Externalities
681(2)
14.3.2 Implications for Government Policy
683(2)
14.3.3 Implications for Managerial Policy
685(1)
14.4 Imperfect Information
686(10)
14.4.1 Incomplete Information
686(3)
14.4.2 Asymmetric Information
689(2)
14.4.3 Implications for Government Policy
691(2)
14.4.4 Implications for Managerial Policy
693(3)
Case Study 14.2 A Minimum Price for Alcohol
694(2)
14.5 Monopoly and Competition Policy
696(31)
14.5.1 Basis of Government Policy
696(3)
14.5.2 The SCP Model
699(1)
14.5.3 Detection of Monopoly
700(1)
14.5.4 Collusion
701(6)
14.5.5 Other Strategic Behaviour
707(3)
14.5.6 Public Ownership
710(5)
14.5.7 Privatization and Regulation
715(5)
14.5.8 Promoting Competition
720(7)
Case Study 14.3 Increasing Concentration in the Global Economy
723(4)
Discussion of Case Study 14.1
727(1)
Summary
728(1)
Review Questions
729(1)
References
730(3)
15 Global Issues in Managerial Economics
733(31)
Case Study 15.1 Challenges of Digitization for Government Policy
734(4)
Case Study 15.2 Covid: to Lock, or Not to Lock? That Is the Question
738(12)
Case Study 15.3 Climate Change Revisited
750(11)
References
761(3)
Index 764
Nick Wilkinson is Professor of Economics at Richmond International University. He has authored two books, Managerial Economics: A Problem-Solving Approach (Cambridge University Press), and An Introduction to Behavioral Economics (Palgrave Macmillan), now in its third edition.