MBA 2436 Managerial Economics and Decision Making

MBA 2436 Managerial Economics and Decision Making

Course code: 
MBA 2436
Strategy and Entrepreneurship
Course coordinator: 
Yao Zhiyong
Course name in Norwegian: 
Managerial Economics and Decision Making
Product category: 
MBA China
2025 Spring
Active status: 
Level of study: 
Teaching language: 
Course type: 
One semester

Managerial Economics is one of the core modules for MBA program. The theoretical background of the module is microeconomics, but managerial economics is much more focused on applications of the economic principles in practice and competition in doing business. This module will use a systematic framework from viewpoint of economics to analyze the decision making in doing business and to explain that how the economic principles and its applications are related. Based on the critical concepts in microeconomics, the module will focus on competitive strategies. Towards different industries and different markets, this module will analyze that how to select a better strategy in pricing, product differentiation, and output competition, etc, and to explain the critical factors to reach better performance in business decision making.


Learning outcomes - Knowledge

The candidate will gain broad understanding of the fundamentals of the market in which he/she operates. Most business decisions – be it in pricing, expansion, innovation or product differentiation etc. – will benefit from being evaluated with a firm grasp of the dynamic equilibrium process of the market and the nature and logic of dynamic competition in the market.


Learning outcomes - Skills
  • Know and understand comprehensive economic theory and methodological knowledge.
  • ​Link theories with the management practices of enterprises, and develop the ability to analyze and solve complex business problems
General Competence
  • Apply knowledge and skills in solving new academic and professional problems.
  • ​Write with clarity and develop skills for decision making analysis
Course content

Day 1:                                                                                                                                                       

  • Introduction
  • Demand Analysis
  • Cost Analysis
  • Supply Analysis
  • Equilibrium Analysis

Day 2:

  • Market Structure
  • Monopoly
  • Pricing Strategy
  • Static Games
  • Dynamic Games

 Day 3:

  • Oligopoly
  • Quantity Competition
  • Price Competition
  • Location Competition  
  • Tacit Collusion                                                                          

Day 4:

  • Adverse Selection
  • Moral Hazard
  • Principle-Agent Problem
  • Organizational Design
  • Market Regulation (Optional)


2 of the teaching hours in this course are dedicated to CSR, ethics, social and environmental issues.

Case Study 1: “Cola War” or/and “Platform Competition in China: Alibaba vs. Tencent”

Case Study 2: “Hamilton Real Estate”

Teaching and learning activities

The course is conducted as a teaching module, where students have classes all day for four subsequent days, a total of 32 hours.

Microsoft Office software are required.

This is a course with two exam components. Candidates may be called in for an oral hearing as a verification/control of written assignments.

Specific information regarding the points system and the mapping scale beyond the information given in the course description will be provided in class. This information may be relevant for requirements for term papers or other hand-ins, and/or where class participation can be one of several elements of the overall evaluation.

The course is a part of a full MBA and examination in all courses in the MBA programme must be passed in order to obtain a certificate for the MBA degree.

In all BI Executive courses and programmes, there is a mutual requirement  
for the student and the course responsible regarding the involvement of the student's experience in the planning and implementation of courses, modules and programmes. This means that the student has the right and duty to get involved with their own knowledge and practice relevance, through the active sharing of their relevant experience and knowledge.

Software tools
Software defined under the section "Teaching and learning activities".

Granted admission to the BI-Fudan MBA programme. Please consult our student regulations.


Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.

Exam category: 
Form of assessment: 
Submission PDF
Group (2 - 6)
1 Semester(s)
Case study, counts 55% of the total grade
Exam code: 
MBA 24363
Grading scale: 
Examination when next scheduled course
Exam category: 
Form of assessment: 
Submission PDF
1 Semester(s)
Final essay, counts 45% of the total grade
Exam code: 
MBA 24364
Grading scale: 
Examination when next scheduled course
Type of Assessment: 
Ordinary examination
All exams must be passed to get a grade in this course.
Total weight: 
Student workload
24 Hour(s)
Prepare for teaching
30 Hour(s)
Student's own work with learning resources
56 Hour(s)
Sum workload: 

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 4 ECTS credit corresponds to a workload of at least 110 hours.