Wk6 DQ - Managerial Economics - Economics
DQ (P) - Discussion Question 1 – (PDQ directed at upcoming PA) Graduate Level
Prior to reading this DQ, please read the PA 2 assignment and understand what the assignment is asking you to complete. Once you have an understanding of the PA 2 assignment, please continue to the paragraph below to complete DQ1.
Using the Library Information Resource Network (LIRN), JSTOR, or any other electronic journal database, research six (6) peer-reviewed articles that can be used to answer your upcoming PA 2 assignment. Your discussion should summarize the articles in such a way that it can justify any arguments you may present in your PA 2 assignment and should be different from the abstract. In addition to your researched peer-reviewed article, you must include an example of the article researched as it is applied by industry (company, business entity, and so forth).
Please note: This article summary should not be the only article researched for your PA 2 assignment. You may (and should) have several other articles researched to fully answer your PA 2 assignment. The concept of this DQ is to allow students to be proactive in the research necessary to complete this assignment. You may use your article summary, partially or in its entirety in your PA 2 assignment.
Important: Please ensure that your reference for the article is in correct APA format, as your reference in your discussion post. Depending on which electronic database you use, you should see a “Cite” selection for your article. In addition, there should be a variety of articles summarized and as such, students should have different articles summarized. Your summary MUST include ALL of the following in your DQ post (include every item in the bullet list below, or you will not receive full credit):
Do these in order:
- In correct APA format, write the Reference of the article.
- Clearly state what the article is about and its purpose.
- Describe how you will use it in your upcoming assignment.
- Repeat for a total of six (6) peer-reviewed sources.
Note:
1. Please find the related PowerPoint and textbook in the attachment.
2. Article List: (Needs to add one more peer-reviewed article)
Ali, B. J., & Anwar, G. (2021). Business strategy: The influence of Strategic Competitiveness on competitive advantage. International Journal of Electrical, Electronics and Computers, 6(2).
Galletta, S., Mazzù, S., & Naciti, V. (2021). Banks business strategy and environmental effectiveness: The monitoring role of the board of directors and the managerial incentives. Business Strategy and the Environment.
Ke, Y. (2021). Applications of Managerial Economics in Business Pricing Strategies. In E3S Web of Conferences (Vol. 235). EDP Sciences.
LESTARI, S. D., LEON, F. M., WIDYASTUTI, S., BRABO, N. A., & Putra, A. H. P. K. (2020). Antecedents and consequences of innovation and business strategy on performance and competitive advantage of SMEs. The Journal of Asian Finance, Economics, and Business, 7(6), 365-378.
Rahman, M. H., & Majumder, S. C. (2021). Relationship between developing manager and managerial economics: a theoretical overview. Independent Journal of Management & Production, 12(5), 1339-1356.
3. Please find the Course Learning Outcome list of this course in the attachment.
Textbook Information:
Baye, M. R., & Prince, J. T. (2017). Managerial economics and business strategy (9th ed.). McGraw-Hill Education
ISBN 9781259290619
Pricing Strategies for Firms with Market Power
© 2017 by McGraw-Hill Education. All Rights Reserved. Authorized only for instructor use in the classroom. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Chapter 11
Learning Objectives
Apply simple elasticity-based markup formulas to determine profit-maximizing prices in environments where a business enjoys market power, including monopoly, monopolistic competition, and Cournot oligopoly.
Formulate pricing strategies that permit firms to extract additional surplus from consumers—including price discrimination, two-part pricing, block pricing, and commodity bundling—and explain the conditions needed for each of these strategies to yield higher profits than standard pricing.
Formulate pricing strategies that enhance profits for special cost and demand structures—such as peak-load pricing, cross-subsidies, and transfer pricing—and explain the conditions needed for each strategy to work.
Explain how price-matching guarantees, brand loyalty programs, and randomized pricing strategies can be used to enhance profits in markets with intense price competition.
© 2017 by McGraw-Hill Education. All Rights Reserved.
2
Review of Basic Profit Maximization
Firms with market power face a downward-sloping demand.
Implication: there is a trade-off between selling many units at a low price and selling a few units at a high price.
Managers of firms with market power balance these competing forces by selecting the quantity that equates marginal revenue and marginal cost , and charging the maximum price that consumer will pay for this level of output.
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11-3
Basic Pricing Strategies
3
Basic Profit Maximization In Action
Suppose the (inverse) demand for a firm’s product is given by and the cost function is . What is the profit-maximizing level of output and price for this firm?
Answer:
The marginal revenue function is: .
The marginal cost function is: .
Equating these two functions yields , so . The profit-maximizing price is .
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11-4
Basic Pricing Strategies
4
Simple Pricing Rule: Monopoly and Monopolistic Competition
What if estimates of the demand and cost functions are not available?
Managers have a “crude” estimate of
marginal cost; the price paid to a supplier.
the price elasticity of demand, since it is typically available for a representative firm in an industry.
With this information, the monopoly and monopolistically competitive firm’s profit-maximizing price (markup) is computed from: MC =
, where .
So, set price such that: .
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11-5
Basic Pricing Strategies
5
Simple Pricing Rule In Action: Problem
The manager of a convenience store competes in a monopolistically competitive market and buys cola from a supplier at a price of $1.25 per liter. The manager thinks that because there are several supermarkets nearby, the demand for cola sold at her store is slightly more elastic than the elasticity for the representative food store. Specifically, the elasticity of demand for cola sold by her store is . What price should the manager charge for a liter of cola to maximize profits?
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11-6
Basic Pricing Strategies
6
Simple Pricing Rule In Action: Answer
The marginal cost of cola to the firm is , or per liter, and the markup factor is .
The profit-maximizing pricing rule for a monopolistically competitive firm is:
, or about per liter.
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11-7
Basic Pricing Strategies
7
Simple Pricing Rule for Cournot Oligopoly
When each of the firms operating in a Cournot oligopoly has identical cost structures and produces similar products, the simple profit-maximizing price (markup) in Cournot equilibrium is:
, where is the market elasticity of demand.
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11-8
Basic Pricing Strategies
8
Beyond the Single-Price-Per-Unit Model
In some markets, managers can enhance profits beyond those resulting from charging all consumers a single, per-unit price.
Models that yield greater profits fall into three categories:
Pricing strategies:
that extract surplus from consumers.
for special cost and demand structures.
in markets with intense price competition.
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11-9
Strategies that Yield Even Greater Profits
9
Models that Extract Surplus from Consumers
Strategies for surplus extraction:
Price discrimination (first, second and third degrees)
Two-part pricing
Block pricing
Commodity bundling
Each strategy is appropriate for firms with various cost structures and degrees of market interdependence.
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11-10
Strategies that Yield Even Greater Profits
10
Surplus Extraction:
First-Degree Price Discrimination
Price discrimination is the practice of charging different prices to consumers for the same good or service.
First-degree price discrimination is the practice of charging each consumer the maximum price he or she would be willing to pay for each unit of the good purchased.
Implication: the firm extracts all surplus from consumers and earns the highest possible profit.
Problem: managers rarely know each consumers’ maximum willingness to pay for each unit of the product.
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11-11
Strategies that Yield Even Greater Profits
11
First-Degree Price Discrimination
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11-12
Strategies that Yield Even Greater Profits
Price
Quantity
Demand
MC
Firm profit under first-degree
price discrimination
12
Surplus Extraction:
Second-Degree Price Discrimination
Second-degree price discrimination is the practice of posting a discrete schedule of declining prices for different ranges of quantity.
Implication: firm extracts some surplus from consumers without needing to know the identity of various consumers’ demand.
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11-13
Strategies that Yield Even Greater Profits
13
Second-Degree Price Discrimination
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11-14
Strategies that Yield Even Greater Profits
Price
Quantity
Demand
MC
Contribution to profits under
second-degree price discrimination
14
Surplus Extraction:
Third-Degree Price Discrimination
Third-degree price discrimination is the practice of charging different prices based on systematic differences in demand across demographic consumer groups.
Implication: marginal revenue will be different for each group. That is, if there are two groups, , for example.
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11-15
Strategies that Yield Even Greater Profits
15
Surplus Extraction: Third-Degree
Price Discrimination Rule
To maximize profits, a firm with market power produces the output at which the marginal revenue (left-hand side of the following equations) to each group equals marginal cost.
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11-16
Strategies that Yield Even Greater Profits
16
Third-Degree
Price Discrimination Rule In Action:
You are the manager of a pizzeria that produces at a marginal cost of $6 per pizza. The pizzeria is a local monopoly near campus. During the day, only students eat at your restaurant. In the evening, while students are studying, faculty members eat there. If students have an elasticity of demand for pizza of and faculty has an elasticity of demand of , what should your pricing policy be to maximize profits?
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11-17
Strategies that Yield Even Greater Profits
17
Third-Degree
Price Discrimination Rule In Action:
Assuming faculty would be unwilling to purchase cold pizzas from students, the conditions for effective third-degree price discrimination hold. It will be profitable to charge a “lunch menu” price and a “dinner menu” price. These prices are determined as follows:
Solving these equations yield, and .
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11-18
Strategies that Yield Even Greater Profits
18
Surplus Extraction: Two-Part Pricing
Two-part pricing is a pricing strategy whereby a firm with market power charges a fixed fee for the right to purchase its goods, plus a per-unit charge for each unit purchased.
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11-19
Strategies that Yield Even Greater Profits
19
Two-Part Pricing
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11-20
Strategies that Yield Even Greater Profits
Price
Quantity
Demand
MC = AC
Fixed fee = $32 = profits
Consumer surplus = $0
Per-unit fee = $2
20
Surplus Extraction: Block Pricing
Block pricing is a pricing strategy in which identical products are packaged together in order to enhance profits by forcing customers to make an all-or-none decision to purchase.
The profit-maximizing price on a package is the total value the consumer receives for the package.
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11-21
Strategies that Yield Even Greater Profits
21
Block Pricing
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11-22
Strategies that Yield Even Greater Profits
Price
Quantity
Demand
MC = AC
Profit with block pricing = $32
Price charged for a block of 8 units = $48
22
Surplus Extraction: Commodity Bundling
Commodity bundling is the practice of bundling several different products together and selling them at a single “bundle price.”
Key assumption: Consumers differ with respect to the amounts they are willing to pay for multiple products sold by a firm.
Managers cannot observe different consumers’ valuations.
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11-23
Strategies that Yield Even Greater Profits
23
Pricing Strategies for Special Cost and Demand Structures: Peak-Load Pricing
Peak-load pricing is a pricing strategy in which higher prices are charged during peak hours than during off-peak hours.
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11-24
Strategies that Yield Even Greater Profits
24
Special Demand and Costs:
Peak-Load Pricing
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11-25
Strategies that Yield Even Greater Profits
Price
Quantity
Demand High
MC
MR High
Demand Low
MR Low
25
Special Demand and Costs:
Cross-Subsidies
Cross-subsidy is a pricing strategy in which profits gained from the sale of one product are used to subsidize sales of a related product.
Cross-Subsidization Principle:
Whenever the demands for two products produced by a firm are interrelated through costs or demand, the firm may enhance profits by cross-subsidization: selling one product at or below cost and the other product above cost.
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11-26
Strategies that Yield Even Greater Profits
26
Special Demand and Costs:
Transfer Pricing
Transfer pricing is a pricing strategy in which a firm optimally sets the internal price at which an upstream division sells an input to a downstream division.
Important since most division managers are provided an incentive to maximize their own division’s profits.
Transfer pricing aligns division manager’s incentives with that of the overall firm, and increases overall firm’s profit.
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11-27
Strategies that Yield Even Greater Profits
27
Special Demand and Costs:
Double Marginalization
Consider a large firm with two divisions:
upstream division is the sole provider of a key input.
downstream division uses the input produced by the upstream division to produce the final output.
Upstream division has market power and incentive to maximize divisional profits leads managers to produce where .
Implication: .
A similar situation exists for the downstream division; profit-maximization leads to .
Both divisions mark price up over marginal cost resulting in a phenomenon called double marginalization.
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11-28
Strategies that Yield Even Greater Profits
28
Special Demand and Costs:
Transfer Pricing Rule
Transfer pricing is used to overcome double marginalization.
A transfer pricing rule sets the internal price at which an upstream division sells inputs to a downstream division in order to maximize the overall firm profits.
Require the upstream division to produce such that its marginal cost, , equals the net marginal revenue to the downstream division:
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11-29
Strategies that Yield Even Greater Profits
29
Intense Price Competition:
Price Matching
Price matching is a strategy in which a firm advertises a price and a promise to match any lower price offered by a competitor.
Used to mitigate the stark outcome associated with firms competing in a homogeneous-product, Bertrand oligopoly.
Outcome: If all firms in the market adopt a price matching policy, all firms can set the monopoly price and earn monopoly profits; instead of the zero profits it would earn in the usual one-shot Bertrand oligopoly.
Potential issues:
Dealing with false consumer claims of low prices.
Competitor’s with lower cost structures.
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11-30
Strategies that Yield Even Greater Profits
30
Intense Price Competition:
Inducing Brand Loyalty
Brand loyal customers continue to buy a firm’s product even if another firm offers a (slightly) better price.
Strategy used to mitigate the tension of Bertrand competition.
Methods for inducing brand loyalty.
Advertising campaigns.
“Frequent-buyer” programs.
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11-31
Strategies that Yield Even Greater Profits
31
Intense Price Competition:
Randomized Pricing
Randomized pricing is a strategy in which a firm intentionally varies its price in an attempt to “hide” price information from consumers and rivals.
Benefits of randomized pricing to firms:
Consumers cannot learn from experience which firm charges the lowest price in the market.
Reduces the ability of rival firms to undercut a firm’s price.
Not always profitable.
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11-32
Strategies that Yield Even Greater Profits
32
The Economics of Information
© 2017 by McGraw-Hill Education. All Rights Reserved. Authorized only for instructor use in the classroom. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Chapter 12
Learning Objectives
Identify strategies to manage risk and uncertainty, including diversification and optimal search strategies.
Calculate the profit-maximizing output and price in an environment of uncertainty.
Explain why asymmetric information about “hidden actions” or “hidden characteristics” can lead to moral hazard and adverse selection, and identify strategies for mitigating these potential problems.
Explain how differing auction rules and information structures impact the incentives in auctions, and determine the optimal bidding strategies in a variety of auctions with independent or correlated values.
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2
Measuring Uncertain Outcomes
A variable that measures the outcome of an uncertain event is called a random variable.
Probabilities can be attached to different values of a random variable that denote the chance that a value occurs.
Information about uncertain outcomes can be summarized by the mean (or, expected value) and variance of a random variable.
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12-3
The Mean and the Variance
3
Measuring Uncertain Outcomes: Mean
The mean of a random variable is the sum of the probabilities that different outcomes will occur multiplied by the resulting payoffs.
If denote the possible outcomes of the random variable and the corresponding probabilities of the outcomes, then the mean of is:
, where .
The mean does not provide information about the risk associated with the random variable.
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12-4
The Mean and the Variance
4
Measuring Uncertain Outcomes:
Variance and Standard Deviation
The variance of a random variable is the sum of the probabilities that different outcomes will occur multiplied by the squared deviation from the mean of the resulting payoffs.
If denote the possible outcomes of the random variable, their corresponding probabilities are , and the expected value of is , then the variance of is:
The variance is a common measure of risk.
The standard deviation is the positive square root of the variance: .
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12-5
The Mean and the Variance
5
Risk Aversion
Attitudes toward risk differ among consumers.
A risk-averse consumer prefers a sure amount of to a risky prospect with an expected value of .
A risk-loving consumer prefers a risky prospect with an expected value of to a sure amount of .
A risk-neutral consumer is indifferent between a risky prospect with an expected value of and a sure amount of .
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12-6
Uncertainty and Consumer Behavior
6
Managerial Decisions with
Risk-Averse Consumers: Product Quality
Risk analysis can used to examine situations where consumers are uncertain about product quality.
Consider a consumer who regularly uses Brand X. If a new product enters the market, Brand Y, under what conditions will the consumer be willing to try the new product?
Issues to overcome and consider:
Relative certainty about Brand X.
At equal prices among other things, a risk averse consumer will continue to purchase Brand X, since a risk averse consumer prefers the sure thing (Brand X) to a risky prospect (Brand Y).
Two tactics can be employed to induce a risk averse consumer to try a new product:
Lower the price of Brand Y.
Try to convince consumer the new product’s quality is higher than the old product.
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12-7
Uncertainty and Consumer Behavior
7
Managerial Decisions with Risk- Averse Consumers
Chain stores: may be in a firm’s best interest to become part of a chain store
Standardization, reputation, increased chance of survival
Online reviews
Insurance: the fact that consumers are risk averse implies they are willing to pay to avoid risk.
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8
Consumer Search
To identify the low-price seller from among many firms selling an identical product, consumers sometimes incur a cost, , to obtain each price quote.
After observing each price quote, a consumer faces must weigh the expected benefit from acquiring an additional price quote with the additional cost.
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12-9
Uncertainty and Consumer Behavior
9
Consumer Search
Suppose that three-quarters of stores in a market charge and one-quarter charge .
A consumer observing a price of should stop searching since there is no price below .
What should a risk-neutral consumer do after observing a price of , if search occurs with free recall and with replacement?
One-quarter of the time the consumer will save .
Three-quarters of the time the consumer will save nothing.
The expected benefit from an additional search is: .
A consumer should search for a lower price as long as the expected benefits for an additional search are greater than the cost of an additional search.
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12-10
Uncertainty and Consumer Behavior
10
Optimal Search Strategy
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12-11
Uncertainty and Consumer Behavior
Price
Reservation price:
Price at which a consumer
is indifferent between
purchasing at that price and
searching for a lower price.
Expected
benefits
and costs
Acceptance Price Region
Rejection Price Region
11
Consumer’s Search Rule
The optimal search rule is such that the consumer rejects prices above the reservation price, , and accepts prices below the reservation price. Stated differently, the optimal search strategy is to search for a better price when the price charged by a firm is above the reservation price and stop searching when a price below the reservation price is found.
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12-12
Uncertainty and Consumer Behavior
12
Increasing Cost of Search
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12-13
Uncertainty and Consumer Behavior
Price
Expected
benefits
and costs
Due to
Increase
in search
costs.
13
Manager’s Risk Attitudes
While manager must understand the impact of uncertainty on consumer behavior, uncertainty also impacts the manager’s input and output decisions.
Manager’s risk profiles:
Risk averse: a manager who prefers a risky project with a lower expected value if the risk is lower than a project with a higher expected value.
Risk loving: manager who prefers a risky project with higher expected value and higher risk to one with lower expected value and lower risk.
Risk neutral: manager interested in maximizing expected profits; the variance of profits does not impact a risk-neutral manager’s decisions.
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12-14
Uncertainty and the Firm
14
Risk Aversion In Action: Problem
A risk-averse manager is considering two projects. The first project involves expanding the market for bologna; the second involves expanding the market for caviar. There is a 10 percent chance of recession and a 90 percent chance of an economic boom. The following table summarizes the profits under the different scenarios. Which project should manager undertake, and why?
a
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12-15
Uncertainty and the Firm
Project Boom
(90\%) Recession (10\%) Mean Standard Deviation
Bologna -$10,000 $12,000 -$7,800 $6,600
Caviar 20,000 -8,000 17,200 8,400
Joint 10,000 4,000 9,400 1,800
Safe (T-Bill) 3,000 3,000 3,000 0
15
Risk Aversion In Action: Answer
Managers should not invest in T-Bills
The joint project is assured of making at least $4,000, which is greater than $3,000 under the T-Bill scenario.
Since the expected returns of the bologna project are negative, neither a risk-neutral nor a risk-averse manager would choose to undertake this project.
The manager should adopt either the caviar project or the joint project. Which project will depend on his or her risk preferences.
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12-16
Uncertainty and the Firm
Project Boom
(90\%) Recession (10\%) Mean Standard Deviation
Bologna -$10,000 $12,000 -$7,800 $6,600
Caviar 20,000 -8,000 17,200 8,400
Joint 10,000 4,000 9,400 1,800
Safe (T-Bill) 3,000 3,000 3,000 0
16
Manager’s Risk Attitudes and Diversification
Notice from the previous problem that by investing in multiple projects, the manager may be able to reduce risk.
The process of potentially reducing risk by investing in multiple projects is called diversification.
Whether it is optimal to diversify depends on a manager’s risk preferences and the incentives provided to the manager to avoid risk.
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12-17
Uncertainty and the Firm
17
Producer Search
When producers are uncertain about the prices of inputs, an optimizing firm will use optimal search strategies.
These strategies mimic consumer search previously developed.
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12-18
Uncertainty and the Firm
18
Profit Maximization and Uncertainty
The basic principles of profit maximization can be modified to deal with uncertainty.
If demand (hence, revenue) is uncertain and the manager is risk neutral, then the manager will want to maximize expected profits by producing the output where the expected marginal revenue equals marginal cost:
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12-19
Uncertainty and the Firm
19
Profit Maximization and Uncertainty
In Action: Problem
Appleway Industries produces apple juice and sells it in a competitive market. The firm’s manager must determine how much juice to produce before he knows what the market (competitive) price will be. Economists estimate that there is a 30 percent chance the market price will be $2 per gallon and a 70 percent chance it will be $1 per gallon when the juice hits the market. If the firm’s cost function is , how much juice should be produced to maximize expected profits? What are the expected profits of Appleway Industries?
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12-20
Uncertainty and the Firm
20
Profit Maximization and Uncertainty
In Action: Answer
Appleway Industries’ profits are
Since price is uncertain, the firm’s revenues and profit are uncertain. To maximize expected profits, the manager equates expected price with marginal cost.
The expected price is: .
Therefore, manager should produce output where gallons.
Expected profits are $645.
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12-21
Uncertainty and the Firm
21
Asymmetric Information
Uncertainty can profoundly impact markets abilities to efficiently allocate resources.
Some markets are characterized by individuals who have better information than others.
Implication: Those individuals with the least information may choose not to participate in a market.
When some people have better information than others in a market, the information people have is called asymmetric information.
There are two specific manifestations related to asymmetric information in markets:
Adverse selection
Moral hazard
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12-22
Uncertainty and the Market
22
Asymmetric Information: Adverse Selection
Adverse selection refers to situations where individuals have hidden characteristics and in which a selection process results in a pool of individuals with undesirable characteristics.
In this context, a hidden characteristic is something that one party to a transaction knows about itself but which are unknown by the other party.
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12-23
Uncertainty and the Market
23
Asymmetric Information: Moral Hazard
Moral hazard refers to a situation where one party to a contract takes a hidden action that benefits his or her at the expense of another party.
In this context, a hidden action is an action taken by one party in a relationship that cannot be observed by the other party.
One way to mitigate the moral hazard problem is an incentive contract.
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12-24
Uncertainty and the Market
24
Signaling
Another way to mitigate the problem of moral hazard is signaling, which is an attempt by an informed party to send an observable indicator of his or her hidden characteristics to an uninformed party.
For signaling to be effective it must be:
observable by the uninformed party.
a reliable indicator of the unobservable characteristic(s) and difficult for parties with other characteristics to easily mimic.
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12-25
Uncertainty and the Market
25
Screening
A final way to mitigate the moral hazard problem is by screening, which is an attempt by an uninformed party to sort individuals according to their characteristics.
Screening may be achieved through a self-selection device.
A self-selection device is a mechanism in which informed parties are presented with a set of options, and the options they choose reveal their hidden characteristics to an uninformed party.
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12-26
Uncertainty and the Market
26
Types of Auctions
An auction is a mechanism where potential buyers compete for the right to own a good, service, or, more generally, anything of value.
Sellers participating in an auction offer an item for sale, and wish to obtain the highest price.
Buyers participating in an auction seek to obtain the item at the lowest possible price.
Bidders’ risk preferences can affect bidding strategies and the expected revenue a seller receives.
Four basic auction types:
English (ascending-bid)
First-price, sealed-bid
Second-price, sealed-bid
Dutch (descending-bid)
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12-27
Auctions
27
Differences Among Auctions Types
The timing of bidder decisions (simultaneously or sequentially)
The amount the winner is required to pay.
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12-28
Auctions
28
English Auction
An English auction is an ascending sequential-bid auction in which bidders observe the bids of others and decide whether or not to increase the bid. The auction ends when a single bidder remains; this bidder obtains the item and pays the auctioneer the amount of the bid.
Bidders continually obtain information about one another’s bids.
Bidder who values the item the most will win.
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12-29
Auctions
29
First-Price, Sealed-Bid Auction
A first-price, sealed-bid auction is a simultaneous-move auction in which bidders simultaneously submit bids to an auctioneer. The auctioneer awards the item to the highest bidder, who pays the amount bid.
Bidders obtain no information about one another’s bids.
Bidder who values the item the most will win.
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12-30
Auctions
30
Second-Price, Sealed-Bid Auction
A second-price, sealed-bid auction is a simultaneous-move auction in which bidders simultaneously submit bids to an auctioneer. The auctioneer awards the item to the highest bidder, who pays the amount bid by the second-highest bidder.
Bidders obtain no information about one another’s bids.
Bidder who values the item the most will win, but pays the second-highest bid.
© 2017 by McGraw-Hill Education. All Rights Reserved.
12-31
Auctions
31
Dutch Auction
A Dutch auction is a descending sequential-bid auction in which the auctioneer beings with a high asking price and gradually reduces the asking price until one bidder announces a willingness to pay that price for the item.
Bidders obtain no information about one another’s bids throughout the auction process.
Bidder who values the item the most will win and pay the amount of his or her bid.
© 2017 by McGraw-Hill Education. All Rights Reserved.
12-32
Auctions
32
Strategic Equivalence of Dutch
and First-Price Auctions
The Dutch and first-price, sealed-bid auctions are strategically equivalent; that is, the optimal bids by participants are identical for both types of auctions.
© 2017 by McGraw-Hill Education. All Rights Reserved.
12-33
Auctions
33
Information Structures
While the four auction types differ with respect to the information bidders have about the bids of other bidders, bidders also have different information structures about the value of their own bids.
Perfect information
Independent private values
Affiliated (or correlated) value estimates
Special case: common-value auctions
© 2017 by McGraw-Hill Education. All Rights Reserved.
12-34
Auctions
34
Optimal Bidding Strategies
for Risk-Neutral Bidders
An optimal bidding strategy for risk-neutral bidders is a strategy that maximizes a bidder’s expected profit.
Optimal bids depends on the
type of auction.
information available to bidders at the time of bidding.
© 2017 by McGraw-Hill Education. All Rights Reserved.
12-35
Auctions
35
Strategies for Independent
Private Value Auctions
With independent private values, bidders know his or her own values prior to the auction start.
English auction
Remain active until the price exceeds his or her own valuation of the object.
Second-price, sealed-bid auction
Bid his or her own valuation of the item. This is a dominant strategy.
First-price, sealed-bid auction (strategically equivalent to the Dutch auction)
Bid less than his or her valuation of the item. If there are bidders who all perceive valuations to be evenly (or uniformly) distributed between a lowest and highest possible valuations, and , respectively, then the optimal bid, , for a player whose own valuation is is:
© 2017 by McGraw-Hill Education. All Rights Reserved.
12-36
Auctions
36
Strategies for Independent
Private Value Auctions In Action: Problem
Consider an auction where bidders have independent private values. Each bidder perceives that valuations are evenly distributed between and . Sam knows his own valuation is . Determine Sam’s optimal bidding strategy in:
A first-price, sealed-bid auction with two bidders.
A Dutch auction with three bidders.
A second-price, sealed-bid auction with 20 bidders.
© 2017 by McGraw-Hill Education. All Rights Reserved.
12-37
Auctions
37
Strategies for Independent
Private Value Auctions In Action: Answer
Sam’s optimal bid in a first-price, sealed-bid auction with two bidders is .
Sam’s optimal bid in a Dutch auction with three bidders is .
Sam’s optimal bid in a second-price, sealed-bid auction with 20 bidders is to bid his true valuation, which is .
© 2017 by McGraw-Hill Education. All Rights Reserved.
12-38
Auctions
38
Strategies for Correlated Values Auctions
Bidders do not know their own valuations for an item, nor others’ valuations.
Implication: makes bidders vulnerable to the winner’s curse, which is the “bad news” conveyed to the winner that his or her estimate of the item’s value exceeds the estimates of all other bidders.
To avoid the winner’s curve in a common-value auction, a bidder should revise downward his or her private estimate of the value to account for this fact.
The auction process may reveal information about how much the other bidders value the object.
The winner’s curse is most pronounced in sealed-bid auctions since bidders don’t learn about other player’s valuation.
English auction, in contrast, provides bidders with information. Therefore, bidders may have to revise up their initial bids.
© 2017 by McGraw-Hill Education. All Rights Reserved.
12-39
Auctions
39
Expected Revenues in
Alternative Types of Auctions
Comparison of expected revenue in auctions with risk-neutral bidders
© 2017 by McGraw-Hill Education. All Rights Reserved.
12-40
Auctions
Information structure Expected revenues
Independent private values English=Second-price = First-Price = Dutch
Affiliated value estimates English > Second-price > First-price = Dutch
40
bay90611_fm_i-xxviii.indd i 10/31/16 04:45 PM
Managerial Economics
and Business Strategy
NINTH EDITION
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The McGraw-Hill Series Economics
ESSENTIALS OF ECONOMICS
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Essentials of Economics
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Managerial Economics
and Business Strategy
Michael R. Baye
Bert Elwert Professor of Business Economics & Public Policy
Kelley School of Business
Indiana University
Jeffrey T. Prince
Associate Professor of Business Economics & Public Policy
Harold A. Poling Chair in Strategic Management
Kelley School of Business
Indiana University
NINTH EDITION
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MANAGERIAL ECONOMICS AND BUSINESS STRATEGY, NINTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2017 by McGraw-Hill
Education. All rights reserved. Printed in the United States of America. Previous editions © 2014, 2010, 2008
and 2006. No part of this publication may be reproduced or distributed in any form or by any means, or stored in
a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not
limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
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DEDICATION
To my former students.
—Michael R. Baye
To Annie, Kate, and Elise.
—Jeffrey T. Prince
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vi
Michael R. Baye is the Bert Elwert Professor of Business Economics & Public Policy at
Indiana University’s Kelley School of Business, and served as the Director of the Bureau of
Economics at the Federal Trade Commission from July 2007 to December 2008. He received
his BS in economics from Texas A&M University in 1980 and earned a PhD in economics
from Purdue University in 1983. Prior to joining Indiana University, he taught graduate
and undergraduate courses at The Pennsylvania State University, Texas A&M University,
and the University of Kentucky. He has held a variety of editorial posts in economics, mar-
keting, and business, and currently serves as a co-editor for the Journal of Economics and
Management Strategy.
Professor Baye has won numerous awards for his outstanding teaching and research,
and teaches courses in managerial economics and industrial organization at the undergrad-
uate, MBA, and PhD levels. His research has been published in the American Economic
Review, Journal of Political Economy, Econometrica, Review of Economic Studies, Economic
Journal, and Management Science. It has also been featured in The Wall Street Journal, Forbes,
the New York Times, and numerous other outlets. When he is not teaching or engaged in research,
Mike enjoys activities ranging from camping to shopping for electronic gadgets.
Jeffrey T. Prince is Associate Professor of Business Economics & Public Policy at Indiana
University’s Kelley School of Business. He is also the Harold A. Poling Chair in Strategic
Management. He received his BA in economics and BS in mathematics and statistics from
Miami University in 1998 and earned a PhD in economics from Northwestern University in
2004. Prior to joining Indiana University, he taught graduate and undergraduate courses at
Cornell University.
Professor Prince has won top teaching honors as a faculty member at both Indiana
University and Cornell, and as a graduate student at Northwestern. He has a broad research
agenda within applied economics, having written and published on topics that include demand
in technology markets, Internet diffusion, regulation in health care, risk aversion in insurance
markets, and quality competition among airlines. He is one of a small number of economists
to have published in both the top journal in economics (American Economic Review) and
the top journal in management (Academy of Management Journal). He currently serves as a
co-editor for the Journal of Economics and Management Strategy and on the editorial board
for Information Economics and Policy. In his free time, Jeff enjoys activities ranging from
poker and bridge to running and racquetball.
About the Authors
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vii
Thanks to feedback from users around the world, Managerial Economics and Business
Strategy remains the best-selling managerial text in the market. We are grateful to all of you
for allowing us to provide this updated and improved edition. Before highlighting some of
the new features of the ninth edition, we would like to stress that the fundamental goal of
the book—providing students with the tools from intermediate microeconomics, game the-
ory, and industrial organization that they need to make sound managerial decisions—has not
changed. What has changed are the examples used to make managerial economics come to
life for this generation of students and the utilization of new technologies (such as Connect)
for enhancing the teaching and learning experiences of instructors and their students.
This book begins by teaching managers the practical utility of basic economic tools such
as present value analysis, supply and demand, regression, indifference curves, isoquants, pro-
duction, costs, and the basic models of perfect competition, monopoly, and monopolistic com-
petition. Adopters and reviewers also praise the book for its real-world examples and because
it includes modern topics not contained in any other single managerial economics textbook:
oligopoly, penetration pricing, multistage and repeated games, foreclosure, contracting, ver-
tical and horizontal integration, networks, bargaining, predatory pricing, principal–agent
problems, raising rivals’ costs, adverse selection, auctions, screening and signaling, search,
limit pricing, and a host of other pricing strategies for firms enjoying market power. This
balanced coverage of traditional and modern microeconomic tools makes it appropriate for a
wide variety of managerial economics classrooms. An increasing number of business schools
are adopting this book to replace (or use alongside) managerial strategy texts laden with anec-
dotes but lacking the microeconomic tools needed to identify and implement the business
strategies that are optimal in a given situation.
This ninth edition of Managerial Economics and Business Strategy has been revised to
include updated examples and problems, but it retains all of the basic content that made pre-
vious editions a success. The basic structure of the textbook is unchanged to ensure a smooth
transition to this edition.
KEY PEDAGOGICAL FEATURES
The ninth edition retains all of the class-tested features of previous editions that enhance
students’ learning experiences and make it easy to teach from this book. But this edition
includes a number of new features available to those using McGraw-Hill’s wonderful interac-
tive learning products, Connect and SmartBook. McGraw-Hill Connect® offers hundreds of
variations of end-of-chapter problems that may be electronically graded and provide students
with immediate, detailed, feedback. SmartBook® provides an adaptive reading experience.
Students and instructors can access these and other powerful resources directly from their
laptops, tablets, and phones. We know how important quality and accuracy is for both instruc-
tors and students when utilizing these enhanced features. For this reason, and unlike many
Preface
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viii Preface
competing books, we are directly involved in the generation and editing of material offered
through both Connect and SmartBook.
Headlines
As in previous editions, each chapter begins with a Headline that is based on a real-world
economic problem—a problem that students should be able to address after completing the
chapter. These Headlines are essentially hand-picked “mini-cases” designed to motivate stu-
dents to learn the material in the chapter. Each Headline is answered at the end of the relevant
chapter—when the student is better prepared to deal with the complications of real-world prob-
lems. Reviewers as well as users of previous editions praise the Headlines not only because
they motivate students to learn the material in the chapter, but also because the answers at the
end of each chapter help students learn how to use economics to make business decisions.
Learning Objectives
Each chapter includes learning objectives designed to enhance the learning experience. End-
of-chapter problems are denoted with the learning objective(s) to which they relate.
Demonstration Problems
The best way to learn economics is to practice solving economic problems. So, in addition
to the Headlines, each chapter contains many Demonstration Problems sprinkled throughout
the text, along with detailed answers. This provides students with a mechanism to verify that
they have mastered the material, and reduces the cost to students and instructors of having
to meet during office hours to discuss answers to problems. Some of the more challenging
demonstration problems have an accompanying video tutorial that walks through the solution
step-by-step. These videos are available via Connect and at www.mhhe.com/baye9e.
Inside Business Applications
Most chapters contain boxed material (called Inside Business applications) to illustrate how
theories explained in the text relate to a host of different business situations. As in previous
editions, we have tried to strike a balance between applications drawn from the current eco-
nomic literature and the popular press.
Calculus and Non-Calculus Alternatives
Users can easily include or exclude calculus-based material without losing content or con-
tinuity. That’s because the basic principles and formulae needed to solve a particular class
of economic problems (e.g., MR = MC) are first stated without appealing to the notation of
calculus. Immediately following each stated principle or formula is a clearly marked Calculus
Alternative. Each of these calculus alternatives states the preceding principle or formula in
calculus notation, and explains the relation between the calculus-based and non- calculus-
based formula. More detailed calculus derivations are relegated to chapter Appendices. Thus,
the book is designed for use by instructors who want to integrate calculus into managerial
economics and by those who do not require students to use calculus.
Variety of End-of-Chapter Problems
Three types of problems are offered. Highly structured but nonetheless challenging Conceptual
and Computational Questions stress fundamentals. These are followed by Problems and
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Preface ix
Applications, which are far less structured and, like real-world decision environments, may
contain more information than is actually needed to solve the problem. Many of these applied
problems are based on actual business events.
Additionally, the Time Warner Cable case that follows Chapter 14 includes 13 problems
called Memos that have a “real-world feel” and complement the text. All of these case-based
problems may be assigned on a chapter-by-chapter basis as specific skills are introduced, or
as part of a capstone experience.
Detailed answers to all problems can be found among the instructor resource material
available via Connect.
Case Study
A case study in business strategy—Time Warner Cable—follows Chapter 14 and was pre-
pared especially for this text. It can be used either as a capstone case for the course or to
supplement individual chapters. The case allows students to apply core elements from man-
agerial economics to a remarkably rich business environment. Instructors can use the case
as the basis for an “open-ended” discussion of business strategy, or they can assign specific
“memos” (contained at the end of the case) that require students to apply specific tools from
managerial economics to the case. Teaching notes, as well as solutions to all of the memos,
are provided among the instructor resource material available via Connect.
Flexibility
Instructors of managerial economics have genuinely heterogeneous textbook needs. Reviewers
and users continue to praise the book for its flexibility, and they assure us that sections or
even entire chapters can be excluded without losing continuity. For instance, an instructor
wishing to stress microeconomic fundamentals might choose to cover Chapters 2, 3, 4, 5, 8,
9, 10, 11, and 12. An instructor teaching a more applied course that stresses business strategy
might choose to cover Chapters 1, 2, 3, 5, 6, 7, 8, 10, 11, and 13. Each may choose to include
additional chapters (for example, Chapter 14 or the Time Warner Cable case) as time permits.
More generally, instructors can easily omit topics such as present value analysis, regression,
indifference curves, isoquants, or reaction functions without losing continuity.
CHANGES IN THE NINTH EDITION
We have made every effort to update and improve Managerial Economics and Business
Strategy while assuring a smooth transition to the ninth edition. Following is a summary of
the pedagogical improvements, enhanced supplements, and content changes that make the
ninth edition an even more powerful tool for teaching and learning managerial economics and
business strategy.
∙ A brand new Case Study—Time Warner Cable—which introduces a whole new set of
managerial challenges beyond those posed in our previous case, Challenges at Time
Warner.
∙ New and updated end-of-chapter problems.
∙ Learning objective labels for each end-of-chapter problem, to help foster targeted
learning.
∙ New and updated Headlines.
∙ New and updated Inside Business applications.
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x Preface
Chapter-by-Chapter Changes
∙ Chapter 1 contains new and updated examples, several updated end-of-chapter prob-
lems, and a new end-of-chapter problem that carefully distinguishes total benefits and
total costs from marginal benefits and marginal costs in an applied setting.
∙ Chapter 2 contains updated demonstration problems and an expanded discussion of
price floors in the text and demonstration problems.
∙ Chapter 3 contains a new Headline and an updated table with accompanying discus-
sion. It also has several updated end-of-chapter problems.
∙ Chapter 4 contains an updated Headline and updated Inside Business applications. It
also has several updated end-of-chapter problems.
∙ Chapter 5 contains an updated Inside Business application with details about the
Affordable Care Act. It also includes a formal definition of the law of diminishing
marginal returns and has several updated end-of-chapter problems.
∙ Chapter 6 offers a new Inside Business on the duration of franchise contracts,
updated examples, and several updated end-of-chapter problems.
∙ Chapter 7 contains a new Headline, updated examples and industry data, as well as
several updated end-of-chapter problems.
∙ Chapter 8 contains an updated Inside Business concerning automobile competition in
China, updated examples, and several updated end-of-chapter problems.
∙ Chapter 9 contains an updated end-of-chapter problem, as well as a new end-of-
chapter problem looking at contestability within airline markets.
∙ Chapter 10 contains a new Inside Business application examining airline competition,
as well as improved Demonstration Problem exposition. It also has several updated
end-of-chapter problems.
∙ Chapter 11 contains a new Inside Business application discussing the use of fuel points
by major U.S. grocery chains. It also has several updated end-of-chapter problems.
∙ Chapter 12 includes a new discussion of online reviews as a means of attracting risk-
averse customers. It also includes a new Inside Business application, as well as several
updated end-of-chapter problems.
∙ Chapter 13 contains a new Inside Business on limit pricing and the “Southwest
Effect.” It also has two updated end-of-chapter problems.
∙ Chapter 14 contains a new Inside Business application discussing the Small Business
Act for Europe as a key distinction in competition policy between Europe and the
United States. In addition, it has two updated end-of-chapter problems, including one
discussing the Trans-Pacific Partnership (TPP).
ORGANIZED LEARNING IN THE NINTH EDITION
Chapter Learning Objectives
Students and instructors can be confident that the organization of each chapter reflects com-
mon themes outlined by four to seven learning objectives listed on the first page of each
chapter. These objectives, along with AACSB and Bloom’s taxonomy learning categories, are
connected to all end-of-chapter material and test bank questions to offer a comprehensive and
thorough teaching and learning experience.
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Preface xi
Assurance of Learning Ready
Many educational institutions today are focused on the notion of assurance of learning, an
important element of some accreditation standards. Managerial Economics and Business
Strategy is designed specifically to support your assurance of learning initiatives with a sim-
ple, yet powerful solution.
Instructors can use Connect to easily query for learning outcomes/objectives that directly
relate to the learning objectives of the course. You can then use the reporting features of
Connect to aggregate student results in similar fashion, making the collection and presenta-
tion of assurance of learning data simple and easy.
AACSB Statement
McGraw-Hill Global Education is a proud corporate member of AACSB International.
Understanding the importance and value of AACSB accreditation, Managerial Economics and
Business Strategy, 9/e, has sought to recognize the curricula guidelines detailed in the AACSB
standards for business accreditation by connecting questions in the test bank and end-of-chapter
material to the general knowledge and skill guidelines found in the AACSB standards.
It is important to note that the statements contained in Managerial Economics and
Business Strategy, 9/e, are provided only as a guide for the users of this text. The AACSB
leaves content coverage and assessment within the purview of individual schools, the mission
of the school, and the faculty. While Managerial Economics and Business Strategy, 9/e, and
the teaching package make no claim of any specific AACSB qualification or evaluation, we
have labeled questions according to the general knowledge and skill areas.
ACKNOWLEDGMENTS
We thank the many users of Managerial Economics and Business Strategy who provided both
direct and indirect feedback that has helped improve your book. This includes thousands of
students at Indiana University’s Kelley School of Business and instructors worldwide who
have used this book in their own classrooms, colleagues who unselfishly gave up their own
time to provide comments and suggestions, and reviewers who provided detailed suggestions
to improve this and previous editions of the book. We especially thank the following profes-
sors, past and present, for enlightening us on the market’s diverse needs and for providing
suggestions and constructive criticisms to improve this book.
Contributing reviewers for this edition:
Narine Badasyan, Murray State University
Cristanna Cook, Husson University
Robert Daffenbach, University of
Oklahoma
Jeffrey Edwards, North Carolina A&T
University
Silke Forbes, Case Western Reserve
University
Martin Heintzelman, Clarkson University
Craig Hovey, Brenau University, Gainesville
Anand Jha, Texas A&M International
University
Harlan Platt, Northeastern University
Stefan Ruediger, Arizona State University
Charles Sebuhara, Virginia Technical
University
Thomas White, Fontbonne University
Keith Willett, Oklahoma State University,
Stillwater
Laura Youderian, Xavier University
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xii Preface
Contributing reviewers for previous editions:
Fatma Abdel-Raouf, Goldey-Beacom
College
Burton Abrams, University of Delaware
Rashid Al-Hmoud, Texas Tech University
Anthony Paul Andrews, Governors State
University
Sisay Asefa, Western Michigan University
Simon Avenell, Murdoch University
Joseph P. Bailey, University of Maryland
Dale G. Bails Christian Brothers University
Dean Baim, Pepperdine University
Sheryl Ball, Virginia Polytechnic University
Klaus Becker, Texas Tech University
Richard Beil, Auburn University
Barbara C. Belivieu, University of
Connecticut
Dan Black, University of Chicago
Louis Cain, Northwestern University
Kerem Cakirer, Indiana University
Leo Chan, University of Kansas
Robert L. Chapman, Florida Metropolitan
University
Joni Charles, Texas State University—San
Marcos
Basanta Chaudhuri, Rutgers University—
New Brunswick
Shuo Chen, State University of New York at
Geneseo
Xiujian Chen, State University of New
York—Binghamton University
Kwang Soo Cheong, Johns Hopkins
University
Christopher B. Colburn, Old Dominion
University
Daniel Patrick Condon, Dominican
University
Michael Conlin, Syracuse University
Cristanna Cook, Husson University
Keith Crocker, Penn State University
Ian Cromb, University of Western Ontario
Dean Croushore, Federal Reserve
Wilffrid W. Csaplar Jr., Bethany College
Shah Dabirian, California State University,
Long Beach
Joseph DaBoll-Lavioe, Nazareth College of
Rochester
George Darko, Tusculum College
Tina Das, Elon University
Ron Deiter, Iowa State University
Jonathan C. Deming, Seattle Pacific
University
Casey Dirienzo, Appalachian State
University
Eric Drabkin, Hawaii Pacific University
Martine Duchatelet, Barry University
Keven C. Duncan, University of Southern
Colorado
Yvonne Durham, Western Washington
University
Eugene F. Elander, Brenau University
Ibrahim Elsaify, Goldey-Beacom College
David Ely, San Diego State University
Mark J. Eschenfelder, Robert Morris
University
Li Feng, Texas State University–San Marcos
David Figlio, University of Florida
Ray Fisman, Graduate School of Business,
Columbia University
Silke Forbes, University of California—San
Diego
David Gerard, Carnegie Mellon University
Sharon Gifford, Rutgers University
Lynn G. Gillette, Northeast Missouri State
University
Otis Gilley, Louisiana Tech University
Roy Gobin, Loyola University
Stephan Gohmann, University of Louisville
Steven Gold, Rochester Institute of
Technology
Julie Hupton Gonzalez, University of
California—Santa Cruz
Thomas A. Gresik, Mendoza College of
Business (University of Notre Dame)
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Preface xiii
Andrea Mays Griffith, California State
University
Madhurima Gupta, University of Notre
Dame
Carl Gwin, Pepperdine University
Gail Heyne Hafer, Lindenwood College
Karen Hallows, George Mason University
William Hamlen Jr., SUNY Buffalo
Shawkat Hammoudeh, Drexel University
Mehdi Harian, Bloomsburg University
Nile W. Hatch, Marriott School (Brigham
Young University)
Clifford Hawley, West Virginia University
Ove Hedegaard, Copenhagen Business
School
Steven Hinson, Webster University
Hart Hodges, Western Washington
University
Robert L. Holland, Purdue University
Jack Hou, California State University—
Long Beach
Lowel R. Jacobsen, William Jewell
College
Thomas D. Jeitschko, Michigan State
University
Jaswant R. Jindia, Southern University
Russell Kashian, University of
Wisconsin—Whitewater
Paul Kattuman, Judge Business School
(Cambridge University)
Brian Kench, University of Tampa
Kimberley L. Kinsley, University of Mary
Washington
Peter Klein, University of Georgia,
University of Missouri—Columbia
Audrey D. Kline, University of Louisville
Robert A. Krell, George Mason
University
Paul R. Kutasovic, New York Institute of
Technology
W. J. Lane, University of New Orleans
Daniel Lee, Shippensburg University
Dick Leiter, American Public University
Canlin Li, University of
California—Riverside
Chung-Ping Loh, University of North
Florida
Vahe Lskavyan, Ohio University—Athens
Heather Luea, Newman University
Nancy L. Lumpkin, Georgetown
College
Thomas Lyon, University of Michigan
Richard Marcus, University of
Wisconsin—Milwaukee
Vincent Marra, University of Delaware
Wade Martin, California State University,
Long Beach
Catherine Matraves, Michigan State
University—East Lansing
John Maxwell, Indiana University
David May, Oklahoma City University
Alan McInnes, California State University,
Fullerton
Christopher McIntosh, University of
Minnesota Duluth
Kimberly L. Merritt, Oklahoma Christian
University
Edward Millner, Virginia Commonwealth
University
John Moran, Syracuse University
Shahriar Mostashari, Campbell University
John Morgan, Haas Business School
(University of California—Berkeley)
Ram Mudambi, …
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e. Embedded Entrepreneurship
f. Three Social Entrepreneurship Models
g. Social-Founder Identity
h. Micros-enterprise Development
Outcomes
Subset 2. Indigenous Entrepreneurship Approaches (Outside of Canada)
a. Indigenous Australian Entrepreneurs Exami
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of these three) to reflect and analyze the potential ways these (
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Identify a specific consumer product that you or your family have used for quite some time. This might be a branded smartphone (if you have used several versions over the years)
or the court to consider in its deliberations. Locard’s exchange principle argues that during the commission of a crime
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aragraphs (meaning 25 sentences or more). Your assignment may be more than 5 paragraphs but not less.
INSTRUCTIONS:
To access the FNU Online Library for journals and articles you can go the FNU library link here:
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In order to
n that draws upon the theoretical reading to explain and contextualize the design choices. Be sure to directly quote or paraphrase the reading
ce to the vaccine. Your campaign must educate and inform the audience on the benefits but also create for safe and open dialogue. A key metric of your campaign will be the direct increase in numbers.
Key outcomes: The approach that you take must be clear
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Topic
You will need to pick one topic for your project (5 pts)
Literature search
You will need to perform a literature search for your topic
Geophysics
you been involved with a company doing a redesign of business processes
Communication on Customer Relations. Discuss how two-way communication on social media channels impacts businesses both positively and negatively. Provide any personal examples from your experience
od pressure and hypertension via a community-wide intervention that targets the problem across the lifespan (i.e. includes all ages).
Develop a community-wide intervention to reduce elevated blood pressure and hypertension in the State of Alabama that in
in body of the report
Conclusions
References (8 References Minimum)
*** Words count = 2000 words.
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*** In Task section I’ve chose (Economic issues in overseas contracting)"
Electromagnetism
w or quality improvement; it was just all part of good nursing care. The goal for quality improvement is to monitor patient outcomes using statistics for comparison to standards of care for different diseases
e a 1 to 2 slide Microsoft PowerPoint presentation on the different models of case management. Include speaker notes... .....Describe three different models of case management.
visual representations of information. They can include numbers
SSAY
ame workbook for all 3 milestones. You do not need to download a new copy for Milestones 2 or 3. When you submit Milestone 3
pages):
Provide a description of an existing intervention in Canada
making the appropriate buying decisions in an ethical and professional manner.
Topic: Purchasing and Technology
You read about blockchain ledger technology. Now do some additional research out on the Internet and share your URL with the rest of the class
be aware of which features their competitors are opting to include so the product development teams can design similar or enhanced features to attract more of the market. The more unique
low (The Top Health Industry Trends to Watch in 2015) to assist you with this discussion.
https://youtu.be/fRym_jyuBc0
Next year the $2.8 trillion U.S. healthcare industry will finally begin to look and feel more like the rest of the business wo
evidence-based primary care curriculum. Throughout your nurse practitioner program
Vignette
Understanding Gender Fluidity
Providing Inclusive Quality Care
Affirming Clinical Encounters
Conclusion
References
Nurse Practitioner Knowledge
Mechanics
and word limit is unit as a guide only.
The assessment may be re-attempted on two further occasions (maximum three attempts in total). All assessments must be resubmitted 3 days within receiving your unsatisfactory grade. You must clearly indicate “Re-su
Trigonometry
Article writing
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5. June 29
After the components sending to the manufacturing house
1. In 1972 the Furman v. Georgia case resulted in a decision that would put action into motion. Furman was originally sentenced to death because of a murder he committed in Georgia but the court debated whether or not this was a violation of his 8th amend
One of the first conflicts that would need to be investigated would be whether the human service professional followed the responsibility to client ethical standard. While developing a relationship with client it is important to clarify that if danger or
Ethical behavior is a critical topic in the workplace because the impact of it can make or break a business
No matter which type of health care organization
With a direct sale
During the pandemic
Computers are being used to monitor the spread of outbreaks in different areas of the world and with this record
3. Furman v. Georgia is a U.S Supreme Court case that resolves around the Eighth Amendments ban on cruel and unsual punishment in death penalty cases. The Furman v. Georgia case was based on Furman being convicted of murder in Georgia. Furman was caught i
One major ethical conflict that may arise in my investigation is the Responsibility to Client in both Standard 3 and Standard 4 of the Ethical Standards for Human Service Professionals (2015). Making sure we do not disclose information without consent ev
4. Identify two examples of real world problems that you have observed in your personal
Summary & Evaluation: Reference & 188. Academic Search Ultimate
Ethics
We can mention at least one example of how the violation of ethical standards can be prevented. Many organizations promote ethical self-regulation by creating moral codes to help direct their business activities
*DDB is used for the first three years
For example
The inbound logistics for William Instrument refer to purchase components from various electronic firms. During the purchase process William need to consider the quality and price of the components. In this case
4. A U.S. Supreme Court case known as Furman v. Georgia (1972) is a landmark case that involved Eighth Amendment’s ban of unusual and cruel punishment in death penalty cases (Furman v. Georgia (1972)
With covid coming into place
In my opinion
with
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The ability to view ourselves from an unbiased perspective allows us to critically assess our personal strengths and weaknesses. This is an important step in the process of finding the right resources for our personal learning style. Ego and pride can be
· By Day 1 of this week
While you must form your answers to the questions below from our assigned reading material
CliftonLarsonAllen LLP (2013)
5 The family dynamic is awkward at first since the most outgoing and straight forward person in the family in Linda
Urien
The most important benefit of my statistical analysis would be the accuracy with which I interpret the data. The greatest obstacle
From a similar but larger point of view
4 In order to get the entire family to come back for another session I would suggest coming in on a day the restaurant is not open
When seeking to identify a patient’s health condition
After viewing the you tube videos on prayer
Your paper must be at least two pages in length (not counting the title and reference pages)
The word assimilate is negative to me. I believe everyone should learn about a country that they are going to live in. It doesnt mean that they have to believe that everything in America is better than where they came from. It means that they care enough
Data collection
Single Subject Chris is a social worker in a geriatric case management program located in a midsize Northeastern town. She has an MSW and is part of a team of case managers that likes to continuously improve on its practice. The team is currently using an
I would start off with Linda on repeating her options for the child and going over what she is feeling with each option. I would want to find out what she is afraid of. I would avoid asking her any “why” questions because I want her to be in the here an
Summarize the advantages and disadvantages of using an Internet site as means of collecting data for psychological research (Comp 2.1) 25.0\% Summarization of the advantages and disadvantages of using an Internet site as means of collecting data for psych
Identify the type of research used in a chosen study
Compose a 1
Optics
effect relationship becomes more difficult—as the researcher cannot enact total control of another person even in an experimental environment. Social workers serve clients in highly complex real-world environments. Clients often implement recommended inte
I think knowing more about you will allow you to be able to choose the right resources
Be 4 pages in length
soft MB-920 dumps review and documentation and high-quality listing pdf MB-920 braindumps also recommended and approved by Microsoft experts. The practical test
g
One thing you will need to do in college is learn how to find and use references. References support your ideas. College-level work must be supported by research. You are expected to do that for this paper. You will research
Elaborate on any potential confounds or ethical concerns while participating in the psychological study 20.0\% Elaboration on any potential confounds or ethical concerns while participating in the psychological study is missing. Elaboration on any potenti
3 The first thing I would do in the family’s first session is develop a genogram of the family to get an idea of all the individuals who play a major role in Linda’s life. After establishing where each member is in relation to the family
A Health in All Policies approach
Note: The requirements outlined below correspond to the grading criteria in the scoring guide. At a minimum
Chen
Read Connecting Communities and Complexity: A Case Study in Creating the Conditions for Transformational Change
Read Reflections on Cultural Humility
Read A Basic Guide to ABCD Community Organizing
Use the bolded black section and sub-section titles below to organize your paper. For each section
Losinski forwarded the article on a priority basis to Mary Scott
Losinksi wanted details on use of the ED at CGH. He asked the administrative resident