MANAGERIAL ECONOMICS

Andrea Filippetti

Instructional goals

Managerial Economics is concerned with the application of economic principles and methodologies to key management decisions within organizations. It provides principles to foster the goals of the organization, as well as a better understanding of the external business environment in which an organization operates, focusing in particular on the global scale.

Prerequisites

Microeconomics

Intended learning outcomes

Students are expected to learn the fundamental economic theories of the firm, the internationalization strategies, and the evolution of the global value chains. Students will be able to navigate current trends of the organizational changes, industry strategies and the evolution of the global economy.

Course Contents

Topics will span from the various theories of the firm, technological change, global value chain and multinational corporations. While the material is theoretical and analytical, it is not mathematically technical.

Reference Books

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Teaching Methods

The classes are based on standard lectures and class discussion. The presentations from practitioners are meant to foster a debate on the topics presented.

Assessment Method

Intermediate exam and final exam will be written or oral depending on the circumstances. Weighting: midterm assignment (35%); motion (25%); class participation (10%); final exam (30%)

Thesis assignment criteria

Students are encouraged to propose their own topic.

Does the syllabus cover sustainability topics?

not directly

Week 1 Contenuto sessioni on line e on campus

Introductory fundamental microeconomics: The neoclassical theory of the firm. The classical theory of the market functioning. The theory of the firm (1): the transaction cost theory of the firm: Coase and Williamson. Readings: Paper: “The nature of the firm”, by R. Coase.

Week 2 Contenuto sessioni on line e on campus

The theory of the firm (2): Simon and Williamson; Readings: paper “The Economics of Organization: The Transaction Cost Approach”, by O. Williamson.

Week 3 Contenuto sessioni on line e on campus

A dynamic theory of the firm: the evolutionary approach of Nelson and Winter and the dynamic capabilities approach. Paper: the “The Behavioural, Evolutionary, and Dynamic Capabilities Theories of the Firm: Retrospective and Prospective dynamic capabilities approach”, by L. Pierce and D. Teece.

Week 4 Contenuto sessioni on line e on campus

The knowledge economy and the knowledge based theory. Readings: paper “Towards a knowledge-based theory of the firm”, by R. Grant.

Week 5 Contenuto sessioni on line e on campus

The origins of the big corporations and transnational corporations. Readings: Chapter "The rise of modern corporations", by F. Guy. Chapter: "The TNC: evolution and growth", by G. Ietto-Gillies

Week 6 Contenuto sessioni on line e on campus

The international location of multi- national corporations and the product cycle of the industry. Reading: paper “International investment and international trade” in the product cycle by R. Vernon.

Week 7 Contenuto sessioni on line e on campus

Clusters and globalization. Reading: paper "Globalization and economic geography: the world is curved, not flat", by P. McCann

Week 8 Contenuto sessioni on line e on campus

Multinational corporations; Reading chapter on MNCs by Grazia Ietto Gillies.

Week 9 Contenuto sessioni on line e on campus

Global value chains and the second unbundling. Reading: chapter "“The second unbundling divide” by R. Baldwin. Case study: The Apple Ipod value chain

Week 10 Contenuto sessioni on line e on campus

Global cities, global value chains and multinational corporations. Reading: chapter "Networks and the Role of Cities” by S. Iammarino and P. McCann

Week 11 Contenuto sessioni on line e on campus

Assignment: motions discussion in class

Week 12 Contenuto sessioni on line e on campus

Revision class.Reading: The innovation in reverse model. Reading: Chapter handbook innovation in reverse.