Managerial Economics and Strategy, Global Edition, 2nd edition

For courses in Managerial Economics.

A Problem-based Approach that Uses Modern Theories and Real-world Examples

Managerial Economics and Strategy uses real-­world issues and examples to illustrate how economic principles impact business decisions. Emphases on agency and contract theory, managerial behavioral economics, game theory, and pricing are especially valuable to future managers. In-text examples and boxed mini­-cases use actual data to illustrate the use of basic economic models, while Q&As pose important managerial or economic problems and demonstrate a step-by-step approach to solving them.

The Second Edition has been fully revised and updated to reflect new supply-and-demand curves and include discussions of corporate social responsibility, opportunistic behavior, and innovation. It also features new learning objectives, examples, end-of-chapter questions, and spreadsheet exercises.

Key features

• A Managerial Solution concludes each chapter and illustrates how managers can use economic tools and concepts to address the chapter-opening managerial problem.
• Managerial Implications are boxed applications that illustrate how managers can use economic theory to make better decisions. Examples include how to avoid holdup problems in contract disputes, and whether a manager should focus on stock prices or profits.
• Q&As help students learn how to solve qualitative or quantitative problems such as how to determine a firm's best-pricing scheme.
• Using Calculus sections present optional calculus treatments at appropriate points in the text (rather than in an appendix).

Specific Content Updates

• Material on corporate social responsibility has been added to chapters 7 and 16.
• Material on innovation is located in chapters 5 and 13.
• Supply and demand analysis in chapter 2 centers around the international coffee market.
• Illustration of econometric forecasting using Nike’s revenue is discussed in chapter 3.
• Discussion of opportunistic behavior is included in chapter 7.
• Simplified treatment of the Cournot model in the main text, with algebraic analysis of the n-firm case with general linear demand has been moved to its own appendix in chapter 11.
• Discussion of double auctions is included in chapter 12.
• An Appendix on the Stackelberg model with general linear demand has been added.
• Newly estimated supply and demand curves are used to analyze the effect of trade policy in the oil market in chapter 17.