AEM 4100

Applied Managerial Economics

Course Description

Course information provided by the Courses of Study 2023-2024. Courses of Study 2023-2024 is scheduled to publish mid-June.

Strategic management of businesses. Quantitative market analysis; costs, production processes, and firm organization; principle agent problems, market structure, pricing strategies.

When Offered Fall.

Prerequisites/Corequisites Prerequisite: AEM 2600 or ECON 3030 or equivalent.

• Demand: Students will have an in depth understanding of markets and the importance of elasticities (price, income, advertising)and be able to utilize this knowledge for proper managerial decisions.
• Estimation: Students will be able to formulate and estimate simple statistical relations and interpret the output to improve managerial decisions.
• Input Usage: Students will be able to articulate the different aspects of hiring inputs in the short run and the long run.
• Principal Agent Issues: Students will be able to discuss the importance of tying pay to performance, but also the issues that arise from variable compensation schemes.
• Pricing Strategies: Students will be able to describe and implement various pricing strategies, including optimal markups, optimal price, types of price discrimination, and transfer pricing, to name a few.

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