Managerial economics

About: Managerial economics is a research topic. Over the lifetime, 1524 publications have been published within this topic receiving 83965 citations.

Managerial Economics in a Global Economy

Abstract: Tastes, production, labor markets, financial markets, and competition have become highly globalized; financial and economic crises have become more frequent, and the risks of doing business have increased in a world economy that has become more sluggish (growing less rapidly than in past decades). Thoroughly recognizing and highlighting this new business environment, Managerial Economics in a Global Economy examines how firms reach optimal managerial decisions in the face of these modern constraints. Managerial Economics in a Global Economy synthesizes economic theory, decision sciences, and business administration to help instructors train students on how managerial deccisions are actually made in the modern, globalized world. Theory is explained clearly and the applications are numerous, real, and relevant. A global perspective permeates the presentation- examples, data and theory- to help illustrate how local economic decision making is now inescapably global.

Introduction: Issues in Network Economics

Abstract: Networks play an increasingly important role in the world economy. Some markets exhibit positive network effects in which the value of a good or service increases with the number of consumers. These include telecommunications, video formats such as Blu-ray, many computer software packages, and online social networks like eHarmony and Facebook. There can also be negative effects, which are present when an increase in the number of users makes the good or service less valuable. This is especially common in the transportation sector of the economy, where congestion can be a problem. Markets with network effects pose difficult policy questions. When strong positive network effects are present, no more than a few firms will exist in the long run, and surviving firms are likely to have market power. Although the market will be statically inefficient, consumer value rises when each supplier serves a greater number of consumers. In addition, firms in emerging markets with rapid technological change, such as broadband service providers, must invest heavily in research and development in order to remain viable. In this setting, dynamic efficiency may be better served with just one or a few firms. The articles in this series address fundamental theoretical and policy issues that are related to network economics. The first paper by Oz Shy contains a survey of both the theoretical and empirical literature that is related to network economics. The literature in this area is both broad and deep. Shy focuses his discussion on the influence of network effects on consumer demand, competition, technological progress, and intellectual property. He also discusses issues related to social networking and eco-

Essays on the financial governance of firms

Abstract: Four essays, or chapters, model the capital structure, governance, and investment decisions as part of a sequential game. Each chapter is separate in its context, assumptions, and conclusions. The titles of the chapters are below. Abstracts of each essay or chapter can be found at the beginning of each chapter. The titles of the chapters or essays are as follows: I. Managerial Ownership with Rent-Seeking Employees, II. Financing Professional Partnerships, III. Sunk Cost Efficiency with Identical Competitors, and IV. Business Stealing and Bankruptcy. With the exception of Chapter III, which is meant to complement Chapter IV, these essays argue that the structure of financial contracts can affect the real behavior of firms. The first chapter argues that financial governance policies affect the behavior of rank-and-file employees. In Chapter II, the governance and capital structure of professional service firms affects clients’ expectations of the firm’s quality. In Chapter IV, the enforcement of financial contracts by bankruptcy courts affects the number of firms that enter and exit the industry.

Computable and Experimental Economics at the University of Limerick

Abstract: Computable economics is the recasting of economics using the mathematics of the digital computer to make economic questions algorithmic and therefore decidable, so that empirical estimation and the resulting policy recommendations may be more concrete (Velupillai, 2000). Experimental economics is the use of laboratory controls in asking empirical economic questions (Kagel and Roth, 1997). This talk describes the activities of Ireland’s first experimental economics laboratory, iCEEL.