The goal of this course is to help you use economic principles to think strategically about business decisions. The course is structured in two parts. The first part shall focus solely on understanding microeconomic ideas (such as the principal-agent problem) and using this understanding to make better managerial decisions. Readings will detail each concept; a case elucidating the application of that concept will then be considered. Topics will include adverse selection, game theory, price discrimination, strategic commitment, barriers to entry, and network effects. The second part of the course considers effective strategic responses to challenges posed by the legal environment. Readings will provide background on various fields of law, such as antitrust and international trade, as well as strategic options available to managers in dealing with challenges in these areas. Cases will emphasize applying knowledge of the legal environment as well as sound business practices to successfully and ethically deal with the challenges posed. Topics will include regulation, antitrust, intellectual property, fiduciary duty, and liability.
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