Microeconomics – MBA


Course textbook:


1. Principles of demand and supply

1a. Incentives matter*

1b. Cost curves*

Evans, A.J., “La Marmotte”, January 2012

Instructions: Complete Exhibit 1 and provide suggestions for the two key decisions

2. Markets and prices

2a. 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?

2b. Comparative Statics Worksheet

3. Industry and supply decisions

3a. 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?

3b. CC Simulation

CC Simulation, February 2014

Discussion question: Is the market for airport services in the UK competitive?

4. Price discrimination

4a. Read through the following Twitter thread: https://twitter.com/anthonyjevans/status/993918866186297349

Choose one of the tweets and use it as the basis to apply some microeconomic theory. Make assumptions and perform calculations where necessary.

4b. Price discrimination  Debrief*

5. Corporate Applications

5a. Prediction markets

Coles, Peter, Lakhani, Karim and McAfee, Andrew, “Prediction Markets at Google” Harvard Business School Case No. 9-607-088, August 20, 2007

5b. Corporate entrepreneurship

Weston, Hilary A., “Automation Consulting Services”, Harvard Business School Case No. 9-190-053, November 2000

Note:

Sessions marked with an asterix (*) have a lecture handout available in advance, which can be downloaded.

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