Managerial Economics

1
Managerial Economics

• Economic Models

2
Stylized Ways of Viewing Interaction

• Simple means Better
• Friedman
• Best Describe the World
• Samuelson
• Every theory is wrong but what if it gets men
  to the moongt

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Model

• THE ECONOMICS OF CRIME
• The Economics of Illegal Parking
• Higher gas prices fuel gas theft!

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Theory

• Self-Interest

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Model Demonstrates

• Economic Actors as Rational Calculators
• Decision making Under Uncertainty terms as used
  in this subject

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Develop Model

• Costs
• Fine
• Probability of being caught and brought to
  Justice
• Benefits
• The loot

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Use Model to Predict

• How does rain impact crime
• Now Test Model
• Econometrics

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Other Models

• Economics of Marriage
• Economics of Abortion
• Economics of Charity
• Economics of Education
• Economics of Your Product
• Economics of Your Employees Behavior
• !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!