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Managerial Economics
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Table of Contents

SECTION I: PROBLEM SOLVING AND DECISION MAKING. 1. Introduction: What This Book is About. 2. The One Lesson of Business. 3. Benefits, Costs, and Decisions. 4. Extent (How Much) Decisions. 5. Investment Decisions: Look Ahead and Reason Back. SECTION II: PRICING, COSTS, AND PROFITS. 6. Simple Pricing. 7. Economies of Scale and Scope. 8. Forecasting Industry Changes. 9. How to Keep Profit from Eroding. SECTION III: PRICING FOR GREATER PROFIT. 10. More Realistic and Complex Pricing. 11. Direct Price Discrimination. 12. Indirect Price Discrimination. SECTION IV: STRATEGIC DECISION MAKING. 13. Strategic Games. 14. Bargaining. SECTION V: UNCERTAINTY. 15. Making Decisions With Uncertainty. 16. The Problem of Adverse Selection. 17. The Problem of Moral Hazard. SECTION VI: ORGANIZATIONAL DESIGN. 18. Getting Employees to Work in the Best Interests of the Firm. 19. Getting Divisions to Work in the Best Interests of The Firm. 20. Managing Vertical Relationships. SECTION VII: WRAPPING UP. 21. You Be The Consultant. Epilog: Those Who Cannot Do, Teach.

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"Managerial Economics: A Problem Solving Approach is a breath of fresh air. After having taught managerial economics for 20 years, I became dissatisfied with texts that confront students with graphs, economic principles only loosely connntected to business problems, and tedious calculations. I wanted a text that really helps students to see how economic principles could help them solve business problems. This new text does just that."

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