Teach your MBA students how to use economics to solve business problems with this breakthrough text. Froeb/McCann's MANAGERIAL ECONOMICS: A PROBLEM SOLVING APPROACH, 2E covers traditional material using a problem-based pedagogy built around common business mistakes. Models are used sparingly, and then only to the extent that they help students figure out why mistakes are made, and how to fix them. This edition's succinct, fast-paced presentation and challenging, interactive applications place students in the role of a decision maker who has to identify mistakes that reduce profits, and propose solutions to bring profits back up. The lively book provides an excellent ongoing reference for students pursuing business careers. New chapters and updates highlight mistakes that precipitated the financial crisis. With MANAGERIAL ECONOMICS, 2E your students are taught to use economics to not only identify profitable decisions, but also how to implement them within an organization.
"The Froeb/McCann textbook is designed for decision makers. Each chapter provides logical steps to solve common but misunderstood business problems. The books candor and novelty make for easy, enjoyable reading."
Luke Froeb served as Chief Economist of the Federal Trade Commission for two years where he managed 75 economists who tore down barriers to competition (often erected by well-meaning bureaucrats) and enforced the antitrust and consumer protection laws of the United States. In July 2005 Professor Froeb returned to Vanderbilt University where today he holds the Margaret and William Oehmig Chair of Entrepreneurship and Free Enterprise. His students voted him outstanding professor of the 2005, 2006, and 2007 executive MBA programs. The first stage of his get-rich-slowly-scheme, MANAGERIAL ECONOMICS: A PROBLEM-SOLVING APPROACH was published in 2007 by Cengage Learning. Dr. Froeb's research focuses on the economics of competition policy. After earning his Ph.D. at the University of Wisconsin, he taught at Tulane University, worked at the U.S. Department of Justice, and spent a year at the University of Chicago Law School before teaching at Vanderbilt. When the antitrust agencies began using Froeb's merger models to predict the competitive effects of mergers, his academic articles became well read. Dr. Froeb received his undergraduate degree from Stanford University, and his Ph.D. from the University of Wisconsin.
Dr. Brian T. McCann has taught courses in managerial economics, strategic management, and entrepreneurship at the undergraduate, MBA and executive education levels. He holds an MBA from Vanderbilt University where he earned the Founder's Medal as the top graduate of the class. Dr. McCann received his doctoral training in strategic management at Purdue University's Krannert School of Management where he was awarded the Ross Fellowship, the Krannert Certificate for Distinguished Teaching, and the Purdue Research Foundation Research Grant. His more than 10 years of industry experience include running a residential land development company, serving as the CFO for an Internet start-up, and implementing new strategic initiatives for a non-profit economic development group. In addition to co-authoring this MBA-level textbook in managerial economics, Dr. McCann's work has appeared or is forthcoming in journals such as Strategic Management Journal, Journal of Management, and Journal of Management Studies. His current research interests span strategic management and entrepreneurship and include the performance implications of firm agglomeration, the effects of ownership structure on competitive behaviors, and the role of threshold-based decision making in the entrepreneurial process.
Preface: Teaching Students to Solve Problems. Part I: PROBLEM SOLVING AND DECISION MAKING. 1. Introduction: What This Book Is About. 2. The One Lesson of Business. 3. Benefits, Costs, and Decisions. 4. Extent (How Much) Decisions. 5. Investment Decisions: Look Ahead and Reason Back. Part II: PRICE, COST, AND PROFIT. 6. Simple Pricing. 7. Economies of Scale and Scope. 8. Understanding Markets and Industry Changes. 9. Relationships Between Industries: The Forces Moving Us Towards Long-Run Equilibrium. 10. Strategy, the Quest to Slow Profit Erosion. 11. Using Supply and Demand: Trade, Bubble, Market Making. Part III: PRICING FOR GREATER PROFIT. 12. More Realistic and Complex Pricing. 13. Direct Price Discrimination. 14. Indirect Price Discrimination. Part IV: STRATEGIC DECISION MAKING. 15. Strategic Games. 16. Bargaining. Part V: UNCERTAINTY. 17. Making Decisions with Uncertainty. 18. Auctions. 19. The Problem of Adverse Selection. 20. The Problem of Moral Hazard. Part VI: ORGANIZATIONAL DESIGN. 21. Getting Employees to Work in the Firm's Best Interests. 22. Getting Divisions to Work in the Firm's Best Interests. 23. Managing Vertical Relationships. Part VII: WRAPPING UP. 24. You Be the Consultant.