Economics – IFBM

aje on July 9, 2025

Managerial Economics shows the application of economic principles and methodologies to key management decisions within organizations. It provides a better understanding of the external business environment in which an organization operates and the understanding of the principles relevant to foster the goals of the organization.

Textbook:

Lecture handouts: to follow.

Assessment instructions: download here.

Course content

Pre-course activity
An optional online course is available here: Economics for IFBM, ESCP.

Here is a short video about what to read:
Session 1 
1. Value creation* +

Textbook reading: Chapter 1.2
Session 2
2a. Cost curves* +

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

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

Textbook reading: Chapter 2.3

2b. 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?

Textbook reading: Chapter 3.3

Extra activity: The Dutch flower auction

Extra activity: Porta Palazzo
Session 3
3a. Market applications +

Textbook reading: Chapter 3.2

3b. Adverse selection +

Textbook reading: Chapter 3.4
Session 4
4a. Read the following X/Twitter thread (also available here).

4b. Price discrimination – Debrief* +

Textbook reading: Chapter 1.3 and Chapter 4.3
Session 5: Online
5a. Group presentations

5b. Debrief
Notes: Sessions marked with an asterix (*) have a lecture handout available in advance, which can be downloaded. Cases marked with a pound sign (£) are available via Blackboard. Follow the + links for additional resources.

Extra: Best croissant in Paris (Luis); 48 hours in Paris (TOPJAW), Ploughman’s Lunch (Tweedy Pubs), a 3 course meal for £5 (Gary Eats) and how global warming is changing the wine industry.