Managerial Economics

The module Managerial Economics provides students with theoretical knowledge and analytical tools to analyse strategic behavior within and between firms. The first part of the module introduces students to game theory; a methodological concept widely used in business and social sciences. It studies outcomes of past strategic interactions, predicts outcomes of future interactions, and advices players involved in such interactions. The second part of the module introduces students to the theory of incentives (principal-agent theory). It studies the interaction between principals (managers) and agents (workers) in productive relationship and contracts under asymmetric information. Studying the games and models introduced in this course enables students to explain and understand a large number of phenomena in management and economics, to recognize resulting challenges, and to develop efficient solution concepts.