Managerial Economics: A Problem Solving Approach

Presenting minimal theory and maximum practical insight, this breakthrough new text re-energizes the MBA microeconomic theory course. MANAGERIAL ECONOMICS: A PROBLEM-SOLVING APPROACH is the exciting, interactive, accessible alternative to dry traditional texts. The only book written specifically for the MBA-level managerial economics course, this innovative first edition equips MBA students with all they need to know to make rational, profit-maximizing business decisions -- in the real world. Theory based but not theory emphasized, MANAGERIAL ECONOMICS includes less math and technical models, as well as fewer graphs and figures, than traditional managerial economics books. It teaches students to solve problems rather than learn models. Students gain a solid understanding of the economics behind the real-world decision-making process as it presents each economic topic in an intriguing, particularly relevant way. Using a decision-making framework, the book places managerial decisions in context, asking students at the beginning of each chapter how they would deal with a particular issue and then detailing the economic and business insight to lead students to the most rational decisions. End-of-chapter material continues to put students in the role of decision maker as they work through managerial situations, helping them sharpen their skills and draw parallels to their own work experience. Succinct mini lectures interspersed throughout chapters help students see the theory behind microeconomic topics and then immediately apply it, making the text a freestanding book that does not require an additional microeconomics tutorial. With a lively, interactive approach, MANAGERIAL ECONOMICS focuses on the kinds of decisions managers face on a daily bases, making it an excellent resource for students pursuing business -- rather than academic -- careers.

When Luke Froeb began teaching at Vanderbilt business school, he taught economics as he had learned it, using formal models and public policy applications. His students could not see its relevance to business, and the Dean threatened to fire him unless customer satisfaction increased.

So he abandoned the public policy applications and began teaching students to exploit inefficiency as a money-making opportunity. He changed from a model-based to a problem-based pedagogy by focusing on business mistakes. He used models sparingly and only to the extent that they helped students to solve business problems. He reduced the analysis to a single lesson that tied the different applications together.

Then, together with Brian McCann, the best student he ever had, they wrote it all down. The result is this book, Managerial Economics: A Problem Solving Approach

After a stint as Chief Economist at the FTC, Froeb returned to Vanderbilt where he has won "Oustanding Professor" of the Executive MBA program at Vanderbilt for the past two years. When he is not doing the professor thing, he does business and antitrust consulting. Froeb received his undergraduate degree from Stanford and a PhD in economics from the University of Wisconsin. Brian T. McCann received his MBA from Vanderbilt University where he earned the Founder's Medal as the top graduate in his class. Brian is currently pursuing a Ph.D. in strategic management at Purdue University and has taught both managerial economics and strategic management classes at the MBA level.