Managerial economics
ECON 3389
ECON 3389
Econ 3389 (Managerial Economics) explores how microeconomic tools can be used to make effective managerial decisions. The course equips students with frameworks for analyzing how firms set prices, make production choices, respond to market conditions, and develop competitive strategies. Topics include demand analysis, production and cost, market structure, pricing strategies, auctions, regulation, and the role of information in decision-making.
The objective of the course is to prepare students to apply economic reasoning to managerial problems across a range of industries. While the course draws on economic theory, the emphasis is on real-world applications and decision-making. Mathematical and statistical tools will be introduced as needed but will not be the central focus.
A key component of the course is a series of detailed case studies that examine actual business decisions in context. These include Netflix’s pricing strategy, Burger King's value menu, Whole Foods' acquisition of Wild Oats, Google’s antitrust investigations, McDonald’s market experiments, American Airlines’ pricing behavior, and Spectrum’s strategic response to cord-cutting. The course also covers broader regulatory and policy issues such as electricity deregulation and net neutrality. These case studies are used to reinforce core concepts and show how economic tools can be applied in practice.
FAQ
Do I need to take Econometrics or Intermediate Micro first?
No. ECON 3389 does not require Econometrics or Intermediate Micro. It’s accessible to students from a range of majors and is ideal if you want to apply economics without advanced math or stats.
What is this course about?
Managerial Economics teaches you how firms make decisions about pricing, production, competition, and strategy. You’ll use economic reasoning to understand real business choices.
What kinds of topics are covered?
Topics include demand analysis, production and cost, market structure, pricing strategies, auctions, government regulation, and strategic behavior.
What’s the format of the course?
The course is case-based and interactive. You’ll analyze real business cases (Netflix, McDonald’s, Google, etc.), read articles, and sometimes share brief takeaways with classmates.
Will I need to use software?
No statistical software is required. Some assignments involve Excel, but only with basic spreadsheet functions. No coding or econometrics.
What kind of assignments will I have?
There are 10 homework assignments (8 count toward your final grade) and 3 midterm exams. Homework is submitted on Canvas.
What kind of students take this class?
This course is ideal for students interested in business, consulting, management, strategy, or policy. It’s also a great option if you want applied economics without technical prerequisites.
How is this class different from Intermediate Microeconomics?
In two main ways. First, Intermediate Micro (ECON 3332) focuses heavily on consumer decision-making — things like indifference curves, utility functions, and consumer choice models. Managerial Economics (ECON 3389), on the other hand, focuses almost entirely on the firm's decision-making, such as pricing, production, and strategy, taking consumer behavior as given. Second, Managerial is more applied and case-based, while Intermediate Micro is more theoretical.
Will I learn anything new if I already took Intermediate Micro?
Yes — while the core theory may feel familiar on the firm side, this course uses real-world case studies to apply those ideas in practical settings. It’s less abstract than Intermediate Micro and focuses more on how firms actually make decisions. It’s also a good refresher if you want to strengthen your micro foundation in a more applied context.
Should I take Intermediate Micro if I’ve already taken Managerial Economics?
Yes, absolutely. Managerial Economics skips some key topics like consumer theory, utility maximization, and externalities, which are typically covered in Intermediate Micro. That said, after Managerial, you'll already be familiar with many firm-side concepts, so you'll likely have a strong head start going into Intermediate Micro.
Do we follow the textbook closely in this course?
Yes — most topics are paired with a specific textbook chapter, which you can find listed in the syllabus. Some case studies are supported by textbook content, but we’ll also use additional materials such as news articles or reports. These will either be posted on Canvas or brought into class discussions based on current events.