Description: The MOST relevant content of any Managerial Economics Text. There is significant coverage of the economic crisis of 2008 and 2009. Bear Stearns, Lehman Brothers, Washington Mutual, and hazard, principal agent, adverse selection, and risk analysis — all critical for understanding the crisis — are treated at length and in depth.

The MOST experienced authors have created a text for the twenty-first century. For over ten years, Bruce Allen, Keith Weigelt, and Neil Doherty have taught the Managerial Economics course at the Wharton School of Business at the University of Pennsylvania. Managerial Economics, Seventh Edition, reflects the modern course that has evolved at Wharton. The theme of competitive strategy is maintained throughout the text; and the coverage of pricing is the most inventive available.

The MOST up-to-date case studies of any text. Managerial Economics, Seventh Edition, has nearly 100 real-world case studies, called Strategy Sessions. These sessions show students how managerial economics is practiced, using many case studies based on business news from, and events that have occurred in, 2005, 2006,2007,2008, and even 2009.

The MOST emphasis on problem solving of any Managerial Economics text. Solving problems is the best way for students to internalize the lessons of applied business economics. The many carefully solved problems — Problem solved boxes in the text — provide solutions to the types of quantitative questions that students will encounter as managers.

FOR STUDENTS

StudySpace wwwnorton.com/studyspace

This free student website provides a rich array of multimedia resources and review materials within a proven, task-oriented study plan. Features include updated Excel worksheets with exercises, audio podcasts, review quizzes, chapter summaries, chapter outlines, and flashcards

Resources include image PowerPoints, lecture PowerPoints, an image gallery of art from the text, Excel exercises with answers, and an electronic test bank.

Contents: Part 1: The need for a guide • Introduction • Part 2: The nature of markets • Demand theory • Consumer behaviour and rational choice • Part 3: Production and cost • Production theory • The analysis of costs • Part 4: Market structure and simple pricing strategies • Perfect competition • Monopoly and monopolistic competition • Part 5: Sophisticated market pricing • The managerial use of price discrimination • Bundling and intrafirm pricing • Part 6: The strategic world of managers • Oligopoly • Game theory • Auctions • Part 7: Risk, uncertainty and incentives • Risk analysis • Principal-agent issues and managerial compensation • Adverse selection • Part 8: Government actions and managerial behavior • Government and business • Appendix. Index

About the Authors: W. Bruce Allen is professor of business and public policy, regional science, and transportation at the Wharton School of the University of Pennsylvania. Professor Allen won the Anvil Award for Teaching Excellence in 1991, and the Miller-Sherred MBA Core Curriculum Teaching Award in 1994 and 1997. He has consulted with a variety of firms and government agencies in the area of transportation and energy economies.

Neil Doherty is Ronald A. Rosenfeld Professor and professor of insurance and risk management at the Wharton School of the University of Pennsylvania. He won the Undergraduate Excellence in Teaching Award in 1997 and the Miller-Sherred MBA Core Curriculum Teaching Award in 1998. Professor Doherty has consulted with numerous major firms including Amerco, Dow Chemical, Sears Roebuck, British Petroleum, Merck, GTE, CIGNA, and UPS.

The late Edwin Mansfield was for many years a distinguished professor of economics at the University of Pennsylvania. He was an internationally recognized expert in the economics of technology and industrial organization. His numerous texts, all published by WW. Norton, have sold millions of copies around the world. In 1979, when Sino American scientific agreements were finally reached, Mansfield was the first American economist to lecture in the People’s Republic of China.

Keith Weigelt is professor of strategy at the Wharton School of the University of Pennsylvania. His research interests lie in game theory, compensation, experimental economics, and the economics of sports. In addition to teaching managerial economics in the Wharton MBA program, Professor Weigelt runs the Field Application Program required at Wharton of all first year MBA students. Through this program, students work on consulting projects with a wide range of firms.

Target Audience: Students of MBA, CA, CWA and Economics.