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Managerial economics
About: Managerial economics is a research topic. Over the lifetime, 1524 publications have been published within this topic receiving 83965 citations.
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TL;DR: In this paper, a positive analysis of non-price competition in the context of setting price, advertising and product development budgets by firms is presented, and a profit maximizing rule for optimal marketing effort expenditures is derived which is shown to be a generalization of the Dorfman-Steiner rule.
Abstract: Intermediate microeconomic analysis traditionally treads lightly in matters of non-price competition. Most of the analysis in Microeconomic Theory, IO, and Managerial Economics texts that is devoted to the topic at both the graduate and undergraduate level is found in chapters on game theory as an application of the prisoner's dilemma, in a paragraph or two summarizing Dorfman and Steiner's profit maximizing rule for advertising, and some general comments on normative aspects of advertising and product development. This sparse treatment is not for lack of suitable conceptual tools for the job. This paper develops a positive analysis of non-price competition in the context of setting price, advertising and product development budgets by firms. In the process, first the relationship between advertising and product development is explored. Then the relationship between these and price is addressed. The analysis is done in the context of a profit-maximizing firm with price, advertising, and product development budgets as decision variables affecting its own and rival's demands. The analysis is built upon the use of "sales isoquants", and marketing effort budgets used in deriving the firm's "sales expansion path". Finally, a profit maximizing rule for optimal marketing effort expenditures is derived which is shown to be a generalization of the Dorfman-Steiner rule.
01 Jan 2009
TL;DR: Langemeier et al. as discussed by the authors used the Malmquist productivity index to estimate the productivity changes for each farm every year and to determine if farms are "catching-up" to the same levels of productivity as the top farms in the study.
Abstract: Michael Langemeier is a professor of Agricultural Economics at KSU. He has been on the faculty since 1990. Extension and research interests include benchmarking of technical and financial performance, strategic positioning, and economies of size. In addition to his extension and research program, Michael teaches courses in Farm Management, Production Economics, and Managerial Economics. Abstract/Summary This presentation will document changes in productivity across Kansas farms over the last 30 years. The Malmquist productivity index is used to estimate the productivity changes for each farm every year and to determine if farms are "catching-up" to the same levels of productivity as the top farms in the study. Differences among these farms in terms of size, sources of income, productivity indices, and financial ratios will be discussed.