Master TR-NQF-HE: Level 7 QF-EHEA: Second Cycle EQF-LLL: Level 7

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
ECO5001 Managerial Economics Fall 3 0 3 8
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction: English
Type of course: Departmental Elective
Course Level:
Mode of Delivery: Face to face
Course Coordinator : HANDE SAĞLAM
Course Lecturer(s): Assoc. Prof. EMİN KÖKSAL
Dr. Öğr. Üyesi FULYA TAŞEL
Assoc. Prof. BÜLENT ANIL
Recommended Optional Program Components: Optional Course Materials: videos, games, etc.
Course Objectives: Managerial Economics is an advanced course that aims to apply economic analysis to a wide array of business problems. The course offers a balanced coverage of traditional and modern microeconomic tools. It begins by teaching the practical utility of basic economic tools such as present value analysis, supply & demand, the basic models of perfect competition, monopoly, and monopolistic competition. It also offers real-world examples which includes modern topics such as oligopoly, multistage & repeated games, vertical & horizontal integration, networks, predatory pricing, principal–agent problems, adverse selection, auctions, limit pricing, and a host of other pricing strategies for firms enjoying market power.

Learning Outcomes

The students who have succeeded in this course;
After completing this class you should be able to:
• Explain the role of profits in a market economy.
• Use marginal analysis to determine the optimal level of a managerial control variable.
• Make investment decisions that increase firm value.
• Set optimal prices and price discriminate.
• Predict industry-level changes using demand/supply analysis.
• Develop long-run strategies to increase firm value.
• Use game theory to predict how your actions influence those of others.
• Make decisions in uncertain environments.
• Solve the problems caused by moral hazard and adverse selection.
• Align individual incentives with the goals of the company.
• Align division incentives with the goals of the company.
• Manage relationships between upstream suppliers or downstream retailers.
• Identify sources of market failure.

Course Content

The Fundamentals of Managerial Economics
Market Forces: Demand and Supply
Quantitative Demand Analysis
The Theory of Individual Behavior
The Production Process and Costs
The Organization of the Firm
The Nature of Industry
Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets
Basic Oligopoly Models
Game Theory: Inside Oligopoly
Pricing Strategies for Firms with Market Power
The Economics of Information
Advanced Topics in Business Strategy
A Manager’s Guide to Government in the Marketplace

Weekly Detailed Course Contents

Week Subject Related Preparation
1) The Fundamentals of Managerial Economics
2) Market Forces: Demand and Supply
3) Quantitative Demand Analysis
4) The Theory of Individual Behavior
5) The Production Process and Costs
6) The Organization of the Firm
7) The Nature of Industry
9) Basic Oligopoly Models
10) Game Theory: Inside Oligopoly
11) Pricing Strategies for Firms with Market Power
12) The Economics of Information
13) Advanced Topics in Business Strategy
14) A Manager’s Guide to Government in the Marketplace
15) Final Exam


Course Notes / Textbooks: Managerial Economics & Business Strategy by Michael BAYE, McGraw-Hill, 7th edition, 2010.
References: The Economist
Business Week

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Homework Assignments 3 % 30
Project 1 % 20
Final 1 % 50
Total % 100
Total % 100

ECTS / Workload Table

Activities Number of Activities Duration (Hours) Workload
Course Hours 14 3 42
Study Hours Out of Class 14 6 84
Project 12 4 48
Homework Assignments 12 2 24
Final 1 2 2
Total Workload 200

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
Program Outcomes Level of Contribution
1) Understand and implement advanced concepts of Siber Security
2) Use math, science, and modern engineering tools to formulate and solve advenced siber security problems.
3) Review the literature critically pertaining to his/her research projects, and connect the earlier literature to his/her own results.
4) Follow, interpret and analyze scientific researches in the field of engineering and use the knowledge in his/her field of study.
5) Work effectively in multi-disciplinary research teams.
6) Acquire scientific knowledge
7) Find out new methods to improve his/her knowledge
8) Effectively express his/her research ideas and findings both orally and in writing
9) Defend research outcomes at seminars and conferences
10) Demonstrate professional and ethical responsibility.