Managerial Economics and Strategy, 4th edition

For managerial economics courses.

Problem-based learning based on real market data

Managerial Economics and Strategy shows how managers can use modern economic theories to address issues they’ll encounter on the job. The authors emphasize problem-solving, together with real-world issues and examples, knowing, from their own teaching experience, that this is often how students learn best.

The heavily revised 4th Edition includes many new worked problems, explanations and end-of-chapter questions. New topics are captured in both text and problems, including the expanding role of the digital economy and the ever-evolving economics of health care.

Hallmark features of this title

Worked problems and solutions

• Chapter-opening Managerial Problems pose real managerial questions, while chapter-closing Managerial Solutions answer those questions using principles from the chapter.
• Mini Cases apply economic theory to managerial problems, such as how price increases on iTunes affect music downloads.
• Q&As pose qualitative or quantitative problems, then use a step-by-step approach to solve them.

Alternate presentations of theory

• Using Calculus sections and exercises reinforce the graphical, verbal and algebraic treatment of topics, for courses requiring calculus.
• Spreadsheet Q&As and exercises demonstrate the uses of spreadsheets for applying economic theory.
• EXPANDED: Cartoons (32 total, 11 new) convey economic points in a memorable, entertaining way.

New and updated features of this title

New problem-solving opportunities

• EXPANDED: 87% of Managerial Problems and Mini-Cases (applications of theory) are new (29%) or revised and updated (58%). New topics include AI in organizations, electrification mandates, the growth of private equity, telematic car insurance, self-driving trucks and zero-price digital monopolies.
• EXPANDED: Managerial Implications features (11 new or revised) explain how managers can use economic principles to make decisions, such as assessing whether they’re maximizing profit.
• EXPANDED: End-of-chapter questions (683 total, 73 new or revised) help students gauge their understanding.

New theoretical and policy analysis

• NEW: Unintended Consequences (22 total) is a new feature pointing out unintended and usually undesirable effects of actions and policies.
• EXPANDED: Added Common Confusions boxes (24 total) use economic theory to clarify or debunk common assumptions.
• NEW: New content addresses the expanding role of the digital economy (e.g., AI, digital ads, disruption of traditional industries); the social responsibility of business; and the economics of health care (e.g., health insurance, pharmaceutical pricing, vaccines).