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
Papers and handouts
Teaching Methods
Standard class.
Case study approaches.
Team works, e.g. motions.
Invited speakers.
Open discussions based on hands-out provided by the teacher
Assessment Method
The grade is based on the Fully Enquiry Based model.
In particular:
- intermediate written assignment in class (30% of the grade)
- assignment in class: discussing motion (20%)
- participation during case study classes (20%)
- final exam (30%)
Exam for non-attending students
- final exam on the whole programme
- additional short paper to be agreed and discussed with the professor. Non attending students are required to contact the Professor to agree on the short paper to be prepared before the exam.
WARNING: all the grades for all the assignments cannot be rejected
Thesis assignment criteria
At least 30/30 grade at the exam
Week 1
The transaction costs theory of the firm (1). Paper: “The nature of the firm”, by R. Coase.
Week 2
The transaction costs theory of the firm (2). Paper: “The Economics of Organization: The Transaction Cost Approach”, by O. Williamson.
Week 3
A dynamic theory of the firm: the evolutionary approach of Nelson and Winter and the dynamic capabilities approach. Paper: “The Behavioural, Evolutionary, and Dynamic Capabilities Theories of the Firm: Retrospective and Prospective dynamic capabilities approach”, by L. Pierce and D. Teece.
Week 4
The knowledge economy and the knowledge based theory. paper “Towards a knowledge-based theory of the firm”, by R. Grant.
Week 5
Vernon - the international location of multi national corporations. paper “International investment and international trade” in the product cycle by R. Vernon.
Week 6
Theory of transnational corporations. paper "Knowledge of the firm and the evolutionary theory of the MNCs" by Kogut and Zander
Week 7
Multinational corporations and digitalization. "Paper by Grazia Ietto Gillies "Digitalization and the Transnational
Corporations"
Week 8
Global value chains. paper Baldwin "Global supply chains".
Week 9
Global clusters and the globalization of the economic activities. Paper "Globalization and economic geography".
Week 10
The delocalization of innovation activities. Paper: "New Product Development in
Emerging Economies"
Week 11
The globalization of intellectual property rights. Paper "The globalization of IPRs", Archibugi and Filippetti
Week 12
Review class.