Managerial Economics and Strategy, 2nd edition

About the Book

Helps Future Managers Learn to Solve New Problems

• NEW! A Managerial Problem begins each chapter using a real-world, important issue to managers, including the effect of the introduction of generic drugs on the pricing of brand name drugs.
• A Managerial Solution concludes each chapter and illustrates how managers can use economic tools and concepts to address the chapter-opening managerial problem.
• Managerial Implications are boxed applications that illustrate how managers can use economic theory to make better decisions. Examples include how to avoid holdup problems in contract disputes, and whether a manager should focus on stock prices or profits.
• NEW! Learning objectives have been added to the beginning of each chapter.
• NEW! 88 End-of-chapter questions have been added to test students’ knowledge.  

Teaches Students the Business Implications of their Decisions Using Real-world Cases and Spreadsheet Analysis

• NEW! In-text examples and boxed mini­cases use actual data to illustrate how to use basic models. For example, to illustrate rivalry in oligopolistic markets, the authors look at rivalry between United and American Airlines and between Coke and Pepsi. Other examples include why American Apparel is vertically integrated, and why upscale manufacturers limit the number of designer hand­bags a customer is allowed to buy.
• Q&As help students learn how to solve qualitative or quantitative problems such as how to determine a firm’s best-pricing scheme.
• NEW! Spreadsheet Exercises show how to use regressions and other modeling tools to solve problems quickly and easily. Spreadsheet Exercises are integrated into the end­-of-­chapter exercises and are available in MyEconLab.
• Using Calculus sections present optional calculus treatments at appropriate points in the text (rather than in an appendix).

Specific Content Updates

• NEW! Material on corporate social responsibility has been added to chapters 7 and 16.
• NEW! Material on innovation is located in chapters 5 and 13.
• NEW! Supply and demand analysis in chapter 2 centers around the international coffee market.
• NEW! Illustration of econometric forecasting using Nike’s revenue is discussed in chapter 3.
• NEW! Discussion of opportunistic behavior is included in chapter 7.
• NEW! Simplified treatment of the Cournot model in the main text, with algebraic analysis of the n-firm case with general linear demand has been moved to its own appendix in chapter 11.
• NEW! Discussion of double auctions is included in chapter 12.
• NEW! An Appendix on the Stackelberg model with general linear demand has been added.
• NEW! Newly estimated supply and demand curves are used to analyze the effect of trade policy in the oil market in chapter 17.

Also available with MyEconLab^®

MyEconLab is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts.

• NEW! Q&As. Key Q&A features from the textbook are available in MyEconLab and give students a model of how to solve an economic problem by breaking it down step-by-step.
• NEW! Spreadsheet Exercises. MyEconLab provides Excel spreadsheets that students can work with, and worked-out answers for end-of-chapter spreadsheet exercises.
• End-of-chapter Questions and Problems, including algorithmic, draw-graph, and numerical, are available to students for additional practice or as assignments.
• NEW! Videos. Key figures, tables, and concepts from the textbook are presented in step-by-step animations with audio explanations of the action, to help students apply economics concepts to solving problems. Six videos cover normal-form games, one addresses correlation and diversification, two tackle moral hazard, and another two show students how to use Excel to run regressions.
• Experiments. Flexible, easy-to-assign, auto-graded, and available in Single and Multiplayer versions, Experiments in MyEconLab make learning fun and engaging.   
• NEW! Enhanced eText. The Pearson eText gives students access to their textbook anytime, anywhere. In addition to notetaking, highlighting, and bookmarking, the Pearson eText offers interactive and sharing features. Students actively read and learn, through embedded and auto-graded practice, real-time data-graphs, animations, author videos, and more. Instructors can share comments or highlights, and students can add their own, for a tight community of learners in any class.  
• Practice. Algorithmically generated homework and study plan exercises with instant feedback ensure varied and productive practice, helping students improve their understanding and prepare for quizzes and tests. Draw-graph exercises encourage students to practice the language of economics.
• Learning Resources. Personalized learning aids such as Help Me Solve This problem walkthroughs, Teach Me explanations of the underlying concept, and figure Animations provide on-demand help when students need it most.
• A Study Plan shows students sections to study next, gives easy access to practice problems, and provides an automatically generated quiz to prove mastery of the course material.
• Digital Interactives. Focused on a single core topic and organized in progressive levels, each interactive immerses students in an assignable and auto-graded activity. Digital Interactives are also engaging lecture tools for traditional, online, and hybrid courses, many incorporating real-time data, data displays, and analysis tools for rich classroom discussions.
• Learning Catalytics^™ is an interactive, student response tool that uses students’ smartphones, tablets, or laptops to engage them in more sophisticated tasks and thinking. Now included with MyLab & Mastering with eText, Learning Catalytics enables you to generate classroom discussion, guide your lecture, and promote peer-to-peer learning with real-time analytics. Instructors, you can:
  • Pose a variety of open-ended questions that help your students develop critical thinking skills.
  • Monitor responses to find out where students are struggling.
  • Use real-time data to adjust your instructional strategy and try other ways of engaging your students during class.
  • Manage student interactions by automatically grouping students for discussion, teamwork, and peer-to-peer learning.
• Real-Time Data Analysis Exercises. Using current macro data to help students understand the impact of changes in economic variables, Real-Time Data Analysis Exercises communicate directly with the Federal Reserve Bank of St. Louis’s FRED^® site and update as new data become available.
• Current News Exercises. Every week, current microeconomic and macroeconomic news stories, with accompanying exercises, are posted to MyEconLab. Assignable and auto-graded, these multi-part exercises ask students to recognize and apply economic concepts to real-world events.
• Reporting Dashboard. View, analyze, and report learning outcomes clearly and easily. Available via the Gradebook and fully mobile-ready, the Reporting Dashboard presents student performance data at the class, section, and program levels in an accessible, visual manner.
• LMS Integration. Link from any LMS platform to access assignments, rosters, and resources, and synchronize MyLab grades with your LMS gradebook. For students, new direct, single sign-on provides access to all the personalized learning MyLab resources that make studying more efficient and effective.
• Mobile Ready. Students and instructors can access multimedia resources and complete assessments right at their fingertips, on any mobile device.

About the Book

Helps Future Managers Learn to Solve New Problems

• A Managerial Problem begins each chapter using a real-world, important issue to managers, including the effect of the introduction of generic drugs on the pricing of brand name drugs.
• Learning objectives have been added to the beginning of each chapter.
• 88 End-of-chapter questions have been added to test students’ knowledge.  

Teaches Students the Business Implications of their Decisions Using Real-world Cases and Spreadsheet Analysis

• In-text examples and boxed mini­cases use actual data to illustrate how to use basic models. For example, to illustrate rivalry in oligopolistic markets, the authors look at rivalry between United and American Airlines and between Coke and Pepsi. Other examples include why American Apparel is vertically integrated, and why upscale manufacturers limit the number of designer hand­bags a customer is allowed to buy.
• Spreadsheet Exercises show how to use regressions and other modeling tools to solve problems quickly and easily. Spreadsheet Exercises are integrated into the end­-of-­chapter exercises and are available in MyEconLab.

Specific Content Updates

• Material on corporate social responsibility has been added to chapters 7 and 16.
• Material on innovation is located in chapters 5 and 13.
• Supply and demand analysis in chapter 2 centers around the international coffee market.
• Illustration of econometric forecasting using Nike’s revenue is discussed in chapter 3.
• Discussion of opportunistic behavior is included in chapter 7.
• Simplified treatment of the Cournot model in the main text, with algebraic analysis of the n-firm case with general linear demand has been moved to its own appendix in chapter 11.
• Discussion of double auctions is included in chapter 12.
• An Appendix on the Stackelberg model with general linear demand has been added.
• Newly estimated supply and demand curves are used to analyze the effect of trade policy in the oil market in chapter 17.

Also available with MyEconLab^®

MyEconLab is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts.

• Q&As. Key Q&A features from the textbook are available in MyEconLab and give students a model of how to solve an economic problem by breaking it down step-by-step.
• Spreadsheet Exercises. MyEconLab provides Excel spreadsheets that students can work with, and worked-out answers for end-of-chapter spreadsheet exercises.
• Videos. Key figures, tables, and concepts from the textbook are presented in step-by-step animations with audio explanations of the action, to help students apply economics concepts to solving problems. Six videos cover normal-form games, one addresses correlation and diversification, two tackle moral hazard, and another two show students how to use Excel to run regressions.
• Enhanced eText. The Pearson eText gives students access to their textbook anytime, anywhere. In addition to notetaking, highlighting, and bookmarking, the Pearson eText offers interactive and sharing features. Students actively read and learn, through embedded and auto-graded practice, real-time data-graphs, animations, author videos, and more. Instructors can share comments or highlights, and students can add their own, for a tight community of learners in any class.