ECONOMICS FOR MANAGERIAL DECISION MAKING-2 1.

INTRODUCTION Economics And Managerial Decision Making - Managerial decision making under perfect information, risky and uncertain situations. - Economics: Scope of economics; economics as a tool for decision making. - Managerial Economics: Definition and scope; distinction between economics and managerial eco. 2. CONSUMER DECISION MAKING Demand Side Of The Market - Factors influencing demand; managerial implications. - Demand elasticities and lessons for a manager. - Demand estimation and fore casting: Basic methods. Logic of Buying And Consumption Conventional explanation for consumer behavior: Review Attributes approach for explaining consumer choices 3. ECONOMICS OF SUPPLY AND PRODUCTION Supply Side of The Market - Factors determining after of a supplier. - Supply elasticities and lessons for a manager. Production: Conceptual Framework - Production concepts: review - Cost concepts; their role in decision making; incrementation; engineering cost curves. - Economies and diseconomies in production and supply. 4. PRICING DECISIONS AND IMPLEMENTATION Alternative Paradigms Of Decision Making By A Firm - The neoclassical model of firm: revenue, equilibrium, and profit positions. - Boumolss sales revenue maximization model. - Behavioral approach of Cyert and March. - Marris model of managerial enterprise. Various Market Models And Market Power - Market classification based on number of players and extent of competition; contestable markets. - Power of the marketer regarding price setting in each of the situations. Pricing Decisions And Implementations-1: Price Determination

- Pricing decisions when competitors would not react. - Pricing under mutual dependence conditions - Pricing for attaining long term objectives. Pricing Decisions And Implementation-2: Specific Models Of Pricing - Situation of multiplant operations - Cartelization - Price discrimination - Transfer pricing Pricing Decisions And Implementation-3: Decisions In Practice - Pricing under uncertainty. - Rule of thumb pricing. - Mark up pricing. - Product line pricing. - Price as quality indicator. - Pricing of product bundles - Promotional pricing. Pricing Decisions And Implementation-4: New Product Pricing Setting the initial price. Adjusting price overtime

5. PRICING IN A REGULATORY FRAMEWORK Market Failures And Price Regulations - Market failures and need for regulation. - Regulations and market structure, firm behavior etc. - Price regulation RECOMMENDED BOOKSS Managerial Economics (by) Ivon Ping (Blackwell Publishers) Economics of Business Policy (by) D N Sengupta and Anindya Sen (OUP) Micro Economics (by) Koutsayannis IVON PING: Managerial Economics (Blackwell Publishers) D N SENGUPTA AND ANINDYA SEN: Economics of Business Policy (OUP) ASSESSMENT Internal Assessments: 25% weightage Attendance and Class Participation: 10 marks Quizzes: 15 marks