Managerial economics syllabus

Imperial College London Business school

• Principles of supply and demand
• Allocation by supply and demand
  • Free markets and limited free markets
  • Market failure
• Demand and costs
  • Demand curve
  • Elasticity
  • Network effects
  • Opportunity costs
  • Short-run and long-run costs
• Pricing with market power
  • Pooled pricing
  • Marginal cost
  • Inverse elasticity rule
  • Targeted pricing
  • Price discrimination
  • Personalised pricing
  • Group pricing
  • Versioning
• Strategic interaction: Game theory
  • Simultaneous-choice games
  • Nash equilibrium
  • Prisoner's Dilemma
  • Tragedy of the commons
  • Coordination games
• Entry and exit
  • Natural and strategic barriers to entry
  • Industry equilibrium in a Bertrand setting
  • Game trees
  • Backward induction
  • Credible threats
  • Commitment mechanisms
• The language of macroeconomics
  • GDP as a welfare measure
  • Supply side
  • The production function
  • Capital accumulation and the capital stock
  • The determination of interest rates
• Labour market and trade
  • Natural rate of unemployment
  • Comparative advantage and terms of trade
  • Internation trade
• Consumption and investment
  • The drivers of consumption spending
  • Consumption and investment
  • Consumption and permanent income
  • Income and substitution effects and interest rates
  • Impact of interest rates on consumption
  • The determinants of investment spending
  • The determination of interest rates
• Money and prices
  • Prices and the rate of inflation
  • Money and prices
  • Conventional and unconventional monetary policies
  • Taylor rule
  • Zero bound, liquidity traps and Quantitative easing