{"product_id":"managerial-economics-in-a-global-economy-9780190848255","title":"Managerial Economics in a Global Economy","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003e.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTrade Review\u003c\/b\u003e\u003cbr\u003e\"Interesting, well-written, and global--a good text!\"  --Evelina Mengova, Governors State University \"This is the flagship textbook for managerial economics.\"  --Daniel Farhat, Radford University \"The breadth of material and range of topics allow instructors to assemble a course that is appropriate for undergraduate economics students, business students, and students pursuing an MBA.\"  --David McClough, Ohio Northern University\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003ePART ONE: INTRODUCTION  CHAPTER 1. The Nature and Scope of Managerial Economics  1-1 The Scope of Managerial Economics  Definition of Managerial Economics  Relationship to Economic Theory Relationship to the Decision Sciences  Relationship to the Functional Areas of Business Administration Studies 1-2 The Basic Process of Decision Making  CASE STUDY 1-1 Peter Drucker-The Man Who Invented Management  CASE STUDY 1-2 The Management Revolution  1-3 The Theory of the Firm  Reasons for the Existence of Firms and Their Functions  The Objective and Value of the Firm Constraints on the Operation of the Firm  Limitations of the Theory of the Firm  BOX 1 Managerial Economics at Work: The Objective and Strategy of Firms in the Cigarette Industry  1-4 The Nature and Function of Profits Business versus Economic Profit  Theories of Profit  Function of Profit  CASE STUDY 1-3 Profits in the Personal Computer Industry 1-5 Business Ethics  CASE STUDY 1-4 Business Ethics at Boeing  CASE STUDY 1-5 Enron-Andersen and Other Financial Disasters  CASE STUDY 1-6 The Global Financial Crisis  1-6 The International Framework of Managerial Economics  CASE STUDY 1-7 The Rise of the Global Corporation  CASE STUDY 1-8 The Global Business Leader  CASE STUDY 1-9 Global Most Admired Companies  1-7 Managerial Economics in a More Risky, Crisis-Prone, and Sluggish Global Economy  CASE STUDY 1-10 Terrorism, Cyber Espionage, Financial Crises, and Globalization  1-8 Managerial Economics and the Internet CASE STUDY 1-11 The Most Important Internet Site Addresses for Managerial Economics  Summary   Discussion Questions  Problems Appendix to Chapter 1: Solving Managerial Decision Problems Using Spreadsheets  Microsoft Excel  Example  Solution  Spreadsheet Problem   Supplementary Readings  CHAPTER 2. Demand, Supply, and Equilibrium Analysis  2-1 Market Analysis  2-2 Market Demand Demand Schedule and Demand Curve  Changes in Demand  2-3 Market Supply  Supply Schedule and Supply Curve  Changes in Supply  2-4 When Is a Market in Equilibrium?  2-5 Adjustment to Changes in Demand and Supply: Comparative Static Analysis  CASE STUDY 2-1 Equilibrium Price by Auction  Adjustment to Changes in Demand  Adjustment to Changes in Supply  CASE STUDY 2-2 Changes in Demand and Supply and Coffee Prices  2-6 Domestic Demand and Supply, Imports, and Prices  CASE STUDY 2-3 Lower Consumer Prices with Imports  2-7 Interfering with versus Working through the Market  CASE STUDY 2-4 Rent Control Harms the Housing Market  CASE STUDY 2-5 The Economics of U.S. Farm Support Programs  CASE STUDY 2-6 Working through the Market with an Excise Tax  BOX 2 Managerial Economics at Work: Nonclearing Financial and Other Markets  Summary  Discussion Questions  Problems Spreadsheet Problems Appendix to Chapter 2 The Algebra of Demand, Supply, and Equilibrium  Market Equilibrium Algebraically  Shifts in Demand and Supply, and Equilibrium  The Effect of an Excise Tax  Appendix Problems  Supplementary Readings  CHAPTER 3. Optimization Techniques and New Management Tools  3-1 Methods of Expressing Economic Relationships  3-2 Total, Average, and Marginal Relationships  Total, Average, and Marginal Cost  Geometric Derivation of the Average- and Marginal-Cost Curves  CASE STUDY 3-1 Total, Average, and Marginal Cost in the U.S. Steel Industry  3-3 Optimization Analysis  Profit Maximization by the Total-Revenue and Total-Cost Approach  Optimization by Marginal Analysis  CASE STUDY 3-2 Optimal Pollution Control  3-4 Constrained Optimization  CASE STUDY 3-3 Pursuing Multiple Objectives under Constraints by Global Corporations  3-5 New Management Tools for Optimization  Benchmarking  Total Quality Management  CASE STUDY 3-4 Benchmarking at Xerox, Ford, and Mobil  Reengineering  CASE STUDY 3-5 Total Quality Management at Johnson \u0026amp; Johnson, Motorola, General Electric and Ford  CASE STUDY 3-6 Reengineering at GE  The Learning Organization  CASE STUDY 3-7 Applying Learning-Organization Principles at Ford and Southwest Airlines  Big Data and Big Data Analytics CASE STUDY 3-8 Big Data Analytics at Amazon, MIT, and Johns Hopkins School of Medicine 3-6 Other Management Tools for Optimization  3-7 New Management Tools and Functional Specialization  CASE STUDY 3-9 The American Business Model  CASE STU DY 3-10 When Governance Rules Fail, Public Trust Is Eroded  BOX 3 Managerial Economics at Work: Management Practices across the World  Summary  Discussion Questions  Problems  Spreadsheet Problems Appendix 1 to Chapter 3 Optimization Using Spreadsheets  Appendix Problems Appendix 2 to Chapter 3 Differential Calculus and Optimization Techniques  The Derivative and Rules of Differentiation  The Concept of the Derivative  Rules of Differentiation  Optimization with Calculus  Determining a Maximum or a Minimum by Calculus  Distinguishing between a Maximum and a Minimum: The Second Derivative  Multivariate Optimization  Partial Derivatives  Maximizing a Multivariable Function  Constrained Optimization  Constrained Optimization by Substitution  Constrained Optimization by the Lagrangian Multiplier Method  Appendix Problems  Supplementary Readings INTEGRATING CASE STUDY 1 Steve Jobs: A Genius Departs: The Astonishing Career of the World's Most Revered Chief Executive  Three-Way Marriage  Oh, and One More Thing    PART TWO: DEMAND ANALYSIS  CHAPTER 4. Demand Theory  4-1 The Demand for a Commodity  An Individual's Demand for a Commodity  From Individual to Market Demand  CASE STUDY 4-1 The Demand for Big Macs  The Demand Faced by a Firm  4-2 Price Elasticity of Demand  CASE STUDY 4-2 The Demand for Sweet Potatoes in the United States  Point Price Elasticity of Demand  Arc Price Elasticity of Demand  Price Elasticity, Total Revenue, and Marginal Revenue  Factors Affecting the Price Elasticity of Demand  4-3 Income Elasticity of Demand  CASE STUDY 4-3 Price Elasticities of Demand in the Real World  CASE STUDY 4-4 Income Elasticities of Demand in the Real World  4-4 Cross-Price Elasticity of Demand  CASE STUDY 4-5 Cross-Price Elasticities of Demand in the Real World  CASE STUDY 4-6 Substitution between Domestic and Foreign Goods  4-5 Using Elasticities in Managerial Decision Making  BOX 4 Managerial Economics at Work: Decision Time at the Aromatic Coffee Company  CASE STUDY 4-7 Demand Elasticities for Alcoholic Beverages in the United States  4-6 International Convergence of Tastes  CASE STUDY 4-8 Gillette Introduces Space-Technology Global Razors  CASE STUDY 4-9 Ford's World Car(s)  4-7 Electronic Commerce  CASE STUDY 4-10 E-Commerce at Amazon.com  CASE STUDY 4-11 Amazon Puts an End to eBay Star Performance  Summary  Discussion Questions  Problems  Spreadsheet Problems Appendix to Chapter 4 Behind the Market Demand Curve-The Theory of Consumer Choice  The Consumer's Tastes: Indifference Curves  The Consumer's Constraints: The Budget Line  The Consumer's Equilibrium  Derivation of the Consumer's Demand Curve  Income and Substitution Effects of a Price Change  The Theory of Consumer Choice Mathematically  Appendix Problems  Supplementary Readings  CHAPTER 5. Demand Estimation  5-1 The Identification Problem  5-2 Marketing Research Approaches to Demand Estimation  Consumer Surveys and Observational Research  CASE STUDY 5-1 Micromarketing: Marketers Zero in on Their Customers  Consumer Clinics  Market Experiments  Behavioral Economics and Marketing CASE STUDY 5-2 Estimation of the Demand for Oranges by Market Experiment  Virtual Shopping and Virtual Management  CASE STUDY 5-3 Reaching Consumers in the Vanishing Mass Market  5-3 Introduction to Regression Analysis  5-4 Simple Regression Analysis  The Ordinary Least-Squares Method  Tests of Significance of Parameter Estimates  Other Aspects of Significance Tests and Confidence Intervals  Test of Goodness of Fit and Correlation  5-5 Multiple Regression Analysis  The Multiple Regression Model  The Coefficient of Determination and Adjusted R2  Analysis of Variance  Point and Interval Estimates  5-6 Problems in Regression Analysis  Multicollinearity  Heteroscedasticity  Autocorrelation  5-7 Demand Estimation by Regression Analysis  Model Specification  Collecting Data on the Variables  Specifying the Form of the Demand Equation  Testing the Econometric Results  5-8 Estimating the Demand for U.S. Imports and Exports  CASE STUDY 5-4 Estimation of the Demand for Air Travel over the North Atlantic  CASE STUDY 5-5 Price and Income Elasticities of Imports and Exports in the Real World  CASE STUDY 5-6 The Major Commodity Exports and Imports of the United States  CASE STUDY 5-7 The Major Trade Partners of the United States  CASE STUDY 5-8 The Top U.S. International Exporters  BOX 5 Managerial Economics at Work: BlackBerry Crumbles  Summary  Discussion Questions  Problems Appendix to Chapter 5 Regression Analysis with Excel  Simple Regression  Multiple Regression Analysis  Appendix Problems  Supplementary Readings  CHAPTER 6. Demand Forecasting  6-1 Qualitative Forecasts Survey Techniques  Opinion Polls Soliciting a Foreign Perspective  6-2 Time-Series Analysis  CASE STUDY 6-1 Forecasting the Number of McDonald's Restaurants Worldwide  Reasons for Fluctuations in Time-Series Data  Trend Projection  Seasonal Variations  CASE STUDY 6-2 Forecasting New-Housing Starts with Time-Series Analysis  6-3 Smoothing Techniques  Moving Averages  Exponential Smoothing  CASE STUDY 6-3 Forecasting Lumber Sales with Smoothing Techniques  6-4 Barometric Methods  CASE STUDY 6-4 Forecasting the Level of Economic Activity with Composite and Diffusion Indexes  CASE STUDY 6-5 The Index of Leading Indicators Goes Global  6-5 Econometric Models  Single-Equation Models  CASE STUDY 6-6 Forecasting the Demand for Air Travel over the North Atlantic  Multiple-Equation Models  CASE STUDY 6-7 Economic Forecasts with Large Econometric Models  BOX 6 Managerial Economics at Work: Risks in Demand Forecasting  6-6 Input-Output Forecasting  Summary  Discussion Questions  Problems Appendix to Chapter 6 Forecasting Fluctuations in Time-Series Analysis Using Excel  Forecasting New-Housing Starts with Regression Analysis  Adjusting the Trend Forecasts of New-Housing Starts for Seasonal Variations by the Ratio-to-Trend Method  Adjusting the Trend Forecasts of New-Housing Starts for Seasonal Variations by Using Seasonal Dummies  Appendix Problems   Supplementary Readings INTEGRATING CASE STUDY 2 Ford's Bet: It's a Small World After All  Ford in the U.S. Automobile Industry  Staking Ford's Future  Epilogue  INTEGRATING CASE STUDY 3 Estimating and Forecasting the U.S. Demand for Electricity    PART THREE: PRODUCTION AND COST ANALYSIS  CHAPTER 7. Production Theory and Estimation  7-1 The Organization of Production and the Production Function  The Organization of Production  The Production Function  7-2 The Production Function with One Variable Input  Total, Average, and Marginal Product  The Law of Diminishing Returns and Stages of Production  7-3 Optimal Use of the Variable Input  CASE STUDY 7-1 Labor Productivity and Total Compensation in the United States and Abroad  7-4 The Production Function with Two Variable Inputs  Production Isoquants  Economic Region of Production  Marginal Rate of Technical Substitution  Perfect Substitutes and Complementary Inputs  7-5 Optimal Combination of Inputs  Isocost Lines  Optimal Input Combination for Minimizing Costs or Maximizing Output  Profit Maximization  Effect of Change in Input Prices  CASE STUDY 7-2 Substitutability between Gasoline Consumption and Driving Time  7-6 Returns to Scale  CASE STUDY 7-3 Returns to Scale in U.S. Manufacturing Industries  CASE STUDY 7-4 General Motors Decides Smaller Is Better  7-7 Empirical Production Functions  CASE STUDY 7-5 Output Elasticities in U.S. Manufacturing Industries  7-8 The Innovation Process  Meaning and Importance of Innovations  CASE STUDY 7-6 How Do Firms Get New Technology?  How Innovative Is Your Company's Culture?  The Open Innovation Model CASE STUDY 7-7 Open Innovations at Procter \u0026amp; Gamble  The Next Step in Open Innovation  7-9 Innovation and Global Competitiveness Innovations and the International Competitiveness of U.S. Firms  BOX 7 Managerial Economics at Work: How Xerox Lost and Regained International Competitiveness and Became a Leader in Information Technology  The New Computer-Aided Production Revolution, 3-D Printing, and the International Competitiveness of U.S. Firms  CASE STUDY 7-8 The New U.S. Digital Factory  CASE STUDY 7-9 The Euro and the International Competitiveness of European Firms  Summary  Discussion Questions  Problems  Spreadheet Problems Appendix to Chapter 7 Production Analysis with Calculus  Constrained Output Maximization  Constrained Cost Minimization  Profit Maximization  Appendix Problems  Supplementary Readings  CHAPTER 8. Cost Theory and Estimation  8-1 The Nature of Costs 8-2 Short-Run Cost Functions  Short-Run Total and Per-Unit Cost Functions  Short-Run Total and Per-Unit Cost Curves  CASE STUDY 8-1 Per-Unit Cost Curves in the Cultivation of Corn and in Traveling  8-3 Long-Run Cost Curves  Long-Run Total Cost Curves  Long-Run Average and Marginal Cost Curves  CASE STUDY 8-2 The Long-Run Average Cost Curve in Electricity Generation  8-4 Plant Size and Economies of Scale  CASE STUDY 8-3 The Shape of the Long-Run Average Cost Curves in Various Industries  8-5 Learning Curves  CASE STUDY 8-4 To Reduce Costs, Firms Often Look Far Afield  8-6 Minimizing Costs Internationally-The New Economies of Scale  International Trade in Inputs  BOX 8 Managerial Economics at Work: Dell PCs and Apple iPhones and iPads Sold in the United States Are Anything but American!  The New International Economies of Scale  Immigration of Skilled Labor  8-7 Logistics or Supply-Chain Management  CASE STUDY 8-5 Logistics at National Semiconductors, Saturn, and Compaq  8-8 Cost-Volume-Profit Analysis and Operating Leverage  Cost-Volume-Profit Analysis  Operating Leverage  CASE STUDY 8-6 Breakeven Analysis for Lockheed's Tri-Star and Europe's Airbus Industrie  8-9 Empirical Estimation of Cost Functions  Data and Measurement Problems in Estimating Short-Run Cost Functions  The Functional Form of Short-Run Cost Functions  CASE STUDY 8-7 Estimates of Short-Run and Long-Run Cost Functions  Estimating Long-Run Cost Functions with Cross-Sectional Regression Analysis  Estimating Long-Run Cost Functions with Engineering and Survival Techniques  Summary  Discussion Questions  Problems  Spreadsheet Problems Appendix to Chapter 8 Cost Analysis with Calculus  Appendix Problems  Supplementary Readings INTEGRATING CASE STUDY 4 Competition in High-Tech Industries in the Age of Disruptive Innovations  INTEGRATING CASE STUDY 5 The Third Industrial Revolution  Toward a Third Dimension  The Shock of the New    PART FOUR: MARKET STRUCTURE AND PRICING PRACTICES  CHAPTER 9. Market Structure: Perfect Competition, Monopoly, and Monopolistic Competition  9-1 Market Structure and Degree of Competition  9-2 Perfect Competition  Meaning and Importance of Perfect Competition  Price Determination under Perfect Competition  CASE STUDY 9-1 Competition in the New York Stock Market  Short-Run Analysis of a Perfectly Competitive Firm  Short-Run Supply Curve of the Competitive Firm and Market  Long-Run Analysis of a Perfectly Competitive Firm  CASE STUDY 9-2 Long-Run Adjustment in the U.S. Cotton Textile Industry  9-3 Competition in the Global Economy  Domestic Demand and Supply, Imports, and Prices  The Dollar Exchange Rate and the International Competitiveness of U.S. Firms  CASE STUDY 9-3 Foreign Exchange Quotations of the Dollar  CASE STUDY 9-4 The Exchange Rate of the U.S. Dollar and the Profitability of U.S. Firms  9-4 Monopoly  Sources of Monopoly  CASE STUDY 9-5 Barriers to Entry and Monopoly by Alcoa  Short-Run Price and Output Determination under Monopoly  Long-Run Price and Output Determination under Monopoly  CASE STUDY 9-6 The Market Value of Monopoly Profits in the New York City Taxi Industry  Comparison of Monopoly and Perfect Competition  BOX 9 Managerial Economics at Work: De Beers Abandons Its Diamond Monopoly  9-5 Monopolistic Competition  Meaning and Importance of Monopolistic Competition  CASE STUDY 9-7 The Monopolistically Competitive Restaurant Market  Short-Run Price and Output Determination under Monopolistic Competition  Long-Run Price and Output Determination under Monopolistic Competition  Product Variation and Selling Expenses under Monopolistic Competition CASE STUDY 9-8 Advertisers Are Taking on Competitors by Name . . . and Being Sued Summary  Discussion Questions  Problems  Spreadsheet Problems Appendix to Chapter 9 Profit Maximization with Calculus  Appendix Problems  Supplementary Readings  CHAPTER 10. Oligopoly and Firm Architecture  10-1 Oligopoly and Market Concentration  Oligopoly: Meaning and Sources  CASE STUDY 10-1 Brands: Thrive or Die  Concentration Ratios, the Herfindahl Index, and Contestable Markets  CASE STUDY 10-2 Industrial Concentration in the United States  10-2 Oligopoly Models  The Cournot Model  The Kinked Demand Curve Model  Cartel Arrangements  CASE STUDY 10-3 The Organization of Petroleum Exporting Countries (OPEC) Cartel  Price Leadership  10-3 Profitability and Efficiency Implications of Oligopoly  Porter's Strategic Framework  Efficiency Implications of Oligopoly  CASE STUDY 10-4 Firm Size and Profitability  CASE STUDY 10-5 Measuring the Pure Efficiency of Operating Units  10-4 The Sales Maximization Model  10-5 The March of Global Oligopolists  CASE STUDY 10-6 The Globalization of the Automobile Industry  CASE STUDY 10-7 Rising Competition in Global Banking  CASE STUDY 10-8 The Globalization of the Pharmaceutical Industry  BOX 10 Managerial Economics at Work: Multinational Corporations Follow Better Management Practices Than National Corporations  10-6 The Architecture of the Ideal Firm and the Creative Company  The Architecture of the Ideal Firm  The Evolution of the Creative Company  CASE STUDY 10-9 Firm Architecture and Organizational Competitiveness of High-Performance Organizations  CASE STUDY 10-10 The Most Innovative Companies in the World  10-7 The Virtual Corporation and Relationship Enterprises  The Virtual Corporation  Relationship Enterprises  CASE STUDY 10-11 Relationship Enterprises in Aerospace, Airlines, Telecommunications, and Automobiles  Summary  Discussion Questions  Problems  Spreadsheet Problems Appendix to Chapter 10 Oligopoly Theory Mathematically  The Cournot Model  The Kinked Demand Curve Model  The Centralized Cartel Model  The Market-Sharing Cartel  The Sales Maximization Model  Appendix Problems  Supplementary Readings  CHAPTER 11. Game Theory and Strategic Behavior  11-1 Strategic Behavior and Game Theory  CASE STUDY 11-1 Military Strategy and Strategic Business Decisions  11-2 Dominant Strategy and Nash Equilibrium  Dominant Strategy  Nash Equilibrium  CASE STUDY 11-2 Dell Computers and Nash Equilibrium  11-3 The Prisoners' Dilemma  11-4 P rice and Nonprice Competition, Cartel Cheating, and Prisoners' Dilemma  Price Competition and the Prisoners' Dilemma  CASE STUDY 11-3 The Airlines' Fare War and the Prisoners' Dilemma  Nonprice Competition, Cartel Cheating, and the Prisoners' Dilemma  11-5 Repeated Games and Tit-for-Tat Strategy  11-6 Strategic Moves  Threat, Commitments, and Credibility  Entry Deterrence  CASE STUDY 11-4 Wal-Mart's Preemptive Expansion Marketing Strategy  11-7 Strategic Behavior and International Competitiveness  BOX 11 Managerial Economics at Work: Companies' Strategic Mistakes and Failures  11-8 Sequential Games and Decision Trees  CASE STUDY 11-5 Airbus's Decision to Build the A380 and Boeing's Sonic Cruiser Response and the 747-8 Summary Discussion Questions  Problems  Spreadsheet Problems  Supplementary Readings  CHAPTER 12. Pricing Practices  12-1 Pricing of Multiple Products  Pricing of Products with Interrelated Demands  Plant Capacity Utilization and Optimal Product Pricing  Optimal Pricing of Joint Products Produced in Fixed Proportions  Optimal Pricing and Output of Joint Products Produced in Variable Proportions  CASE STUDY 12-1 Optimal Pricing and Output by Gillette  12-2 Price Discrimination  Meaning of and Conditions for Price Discrimination  First- and Second-Degree Price Discrimination  Third-Degree Price Discrimination Graphically  CASE STUDY 12-2 Price Discrimination by Con Edison  Third-Degree Price Discrimination Algebraically  12-3 International Price Discrimination and Dumping  BOX 12 Managerial Economics at Work: Kodak Antidumping Disputes with Fuji and Loss of Market  12-4 Transfer Pricing  Meaning and Nature of Transfer Pricing  Transfer Pricing with No External Market for the Intermediate Product  Transfer Pricing with a Perfectly Competitive Market for the Intermediate Product  Transfer Pricing with an Imperfectly Competitive Market for the Intermediate Product  CASE STUDY 12-3 Transfer Pricing by Multinationals Operating in Emerging Markets  CASE STUDY 12-4 Transfer Pricing in Advanced Countries  12-5 Pricing in Practice  Cost-Plus Pricing  Evaluation of Cost-Plus Pricing  Incremental Analysis in Pricing  CASE STUDY 12-5 Incremental Pricing at Continental Airlines  Peak-Load Pricing, Two-Part Tariff, Tying, and Bundling  CASE STUDY 12-6 Peak-Load Pricing by Con Edison  CASE STUDY 12-7 Bundling in the Leasing of Movies  Other Pricing Practices CASE STUDY 12-8 No-Haggling Value Pricing in Car Buying  CASE STUDY 12-9 Name Your Price at Priceline  Discussion Questions  Problems  Spreadsheet Problems Appendix to Chapter 12 Third-Degree Price Discrimination with Calculus  Appendix Problems  Supplementary Readings INTEGRATING CASE STUDY 6 E-Books Rewrite Bookselling  INTEGRATING CASE STUDY 7 Has Apple Peaked and Are Its Best Days Behind It?  INTEGRATING CASE STUDY 8 Pricing on the Internet    PART FIVE: REGULATION, RISK ANALYSIS, AND CAPITAL BUDGETING  CHAPTER 13. Regulation and Antitrust: The Role of Government in the Economy  13-1 Government Regulation to Support Business and to Protect Consumers, Workers, and the Environment  Government Regulations That Restrict Competition  CASE STUDY 13-1 Restrictions on Competition in the Pricing of Milk in New York City and the Nation  Government Regulations to Protect Consumers, Workers, and the Environment  CASE STUDY 13-2 The FDA Steps Up Regulation of the Food and Drug Industry  CASE STUDY 13-3 Regulation Greatly Reduced Air Pollution  13-2 Externalities and Regulation  The Meaning and Importance of Externalities  Policies to Deal with Externalities  13-3 Public Utility Regulation  Public Utilities as Natural Monopolies  CASE STUDY 13-4 The Market for Dumping Rights  Difficulties in Public Utility Regulation  CASE STUDY 13-5 Regulated Electricity Rates for Con Edison  13-4 Antitrust: Government Regulation of Market Structure and Conduct  Sherman Act (1890)  Clayton Act (1914)  Federal Trade Commission Act (1914)  Robinson-Patman Act (1936)  Wheeler-Lea Act (1938)  Celler-Kefauver Antimerger Act (1950)  13-5 Enforcement of Antitrust Laws and the Deregulation Movement  Enforcement of Antitrust Laws: Some General Observations  Enforcement of Antitrust Laws: Structure  CASE STUDY 13-6 The IBM and AT\u0026amp;T Cases  CASE STUDY 13-7 Antitrust and the New Merger Boom  Enforcement of Antitrust Laws: Conduct  CASE STUDY 13-8 The Microsoft Antitrust Case  The Deregulation Movement  13-6 Regulation of International Competition  CASE STUDY 13-9 Deregulation of the Airline Industry: An Assessment  CASE STUDY 13-10 Voluntary Export Restraints on Japanese Automobiles to the United States  13-7 The Effect of Taxation on Business Decisions  BOX 13 Managerial Economics at Work: Corporate Tax Rates around the World and Multinationals' Behavior CASE STUDY 13-11 U.S. Border Taxes and Export Subsidies  Summary Discussion Questions  Problems  Spreadsheet Problems Supplementary Readings  CHAPTER 14. Risk Analysis  14-1 Risk and Uncertainty in Managerial Decision Making  CASE STUDY 14-1 The Risk Faced by Coca-Cola in Changing Its Secret Formula  CASE STUDY 14-2 The 10 Biggest Failures in the United States  14-2 Measuring Risk with Probability Distributions  Probability Distributions  An Absolute Measure of Risk: The Standard Deviation  Measuring Probabilities with the Normal Distribution  A Relative Measure of Risk: The Coefficient of Variation  CASE STUDY 14-3 RiskMetrics: A Method of Measuring Value at Risk  14-3 Utility Theory and Risk Aversion  CASE STUDY 14-4 The Purchase of Insurance and Gambling by the Same Individual-A Seeming Contradiction  14-4 Adjusting the Valuation Model for Risk  Risk-Adjusted Discount Rates  Certainty-Equivalent Approach  CASE STUDY 14-5 Adjusting the Valuation Model for Risk in the Real World  14-5 Other Techniques for Incorporating Risk into Decision Making  Decision Trees  Simulation  14-6 Decision Making under Uncertainty The Maximin Criterion  The Minimax Regret Criterion  Other Methods of Dealing with Uncertainty  CASE STUDY 14-6 Spreading Risks in the Choice of a Portfolio  14-7 Foreign-Exchange Risks and Hedging  BOX 14 Managerial Economics at Work: How Foreign Stocks Have Benefited a Domestic Portfolio  CASE STUDY 14-7 Information, Risk, and the Collapse of Long-Term Capital Management  14-8 Information and Risk  Asymmetric Information and the Market for Lemons  The Insurance Market and Adverse Selection  The Problem of Moral Hazard  The Principal-Agent Problem  CASE STUDY 14-8 Do Golden Parachutes Reward Failure?  Auctions  CASE STUDY 14-9 Auctioning of the Airwaves  Summary  Discussion Questions  Problems  Spreadsheet Problems  Supplementary Readings  CHAPTER 15. Long-Run Investment Decisions: Capital Budgeting  15-1 Capital Budgeting: An Overview  Meaning and Importance of Capital Budgeting  Overview of the Capital Budgeting Process  CASE STUDY 15-1 Cost-Benefit Analysis and the SST 15-2 The Capital Budgeting Process  Projecting Cash Flows  CASE STUDY 15-2 The Eurotunnel: Another Bad French-British Investment?  Net Present Value (NPV)  Internal Rate of Return (IRR)  Comparison of NPV and IRR  CASE STUDY 15-3 Pennzoil's $3 Billion Capital Budgeting Challenge  CASE STUDY 15-4 Capital Budgeting for Investments in Human Capital  BOX 15 Managerial Economics at Work: Is a College Education Still Worth It?  15-3 Capital Rationing and the Profitability Index  15-4 The Cost of Capital  The Cost of Debt  The Cost of Equity Capital: The Risk-Free Rate Plus Premium  The Cost of Equity Capital: The Dividend Valuation Model  The Cost of Equity Capital: The Capital Asset Pricing Model (CAPM)  The Weighted Cost of Capital  CASE STUDY 15-5 The Choice between Equity and Debt  CASE STUDY 15-6 Capital Budgeting Techniques of Major U.S. Firms  15-5 Reviewing Investment Projects After Implementation  15-6 The Cost of Capital and International Competitiveness  Summary  Discussion Questions  Problems  Spreadsheet Problems  Supplementary Readings INTEGRATING CASE STUDY 9 How the U.S. Airline Industry Found Its Edge  INTEGRATING CASE STUDY 10 How Silicon Valley Conquered the Carriers  INTEGRATING CASE STUDY 11 Turning Networks into Software Will Trigger a Storm in the Telecom World Introductory Comment Concluding Comments   APPENDIXES  APPENDIX A COMPOUND ING, DISCOUNTING, AND PRESENT VALUE  A-1 Future Value and Compounding  A-2 Present Value and Discounting  A-3 Future Value of an Annuity  A-4 Present Value of an Annuity  A-5 Compounding and Discounting Periods  A-6 Determining the Interest Rate  A-7 Perpetuities   APPENDIX B INTEREST FACTOR TABLES  Table B-1 Compound Value of $1  Table B-2 Present Value of $1  Table B-3 Future Value of an Annuity of $1 for n Periods  Table B-4 Present Value of an Annuity of $1 for n Periods   APPENDIX C STATISTICAL TABLES  Table C-1 Areas under the Standard Normal Distribution  Table C-2 Areas in the Tails of the t Distribution  Table C-3 F Distribution for 5 Percent Significance  Table C-4 Durbin-Watson Statistic for 5 Percent Significance Points of dL dU   APPENDIX D ANSWERS TO SELECTED (ASTERISKED) PROBLEMS   Glossary  Index","brand":"Oxford University Press","offers":[{"title":"Default Title","offer_id":52090650820951,"sku":"9780190848255","price":227.99,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9780190848255.jpg?v=1762272937","url":"https:\/\/bookcurl.com\/products\/managerial-economics-in-a-global-economy-9780190848255","provider":"Book Curl","version":"1.0","type":"link"}