Microeconomics – MBA

Course textbook:

1. Consumer behaviour and negotiation

1a. Value creation* (+)

1b. Understanding cost* (+)

Textbook: Chapter 1.2 and Chapter 2.1

2. Supply decisions

2a. Cost curves* (+)

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

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

2b. 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?

Textbook: Chapter 2.2, 2.3 and 2.4

3. Markets and prices

3a. 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?

3b. Equilibrium assignment (+)

Textbook: Chapter 3.1, 3.2, and 3.3

4. Asymmetric information and market design

4a. Adverse selection (+)

4b. Prediction markets (+)

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

Textbook: Chapter 3.4 and Chapter 4.4 and 4.5

5. Strategic microeconomics

5a. Game Theory (+)

5b. Oligopoly (+)

Textbook: Chapter 5.2


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.