Managerial Economics: A Problem-solving Approach . Why is teaching economics to MBA’s so difficult? . Students with varying backgrounds: English majors vs. Engineers; Econ. and Business majors; Executive MBA’s and non-degree Exec. Ed. Healthcare professionals etc
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Align the incentives of employees with the profitability goals of the company.
1. Who is making bad decision?
2. Do they have enough info to make a good decision?
3. Do they have the incentive to do so?
1. Let someone else make the decision, someone with better information or incentives.
2. Change the information flow.
3. Change incentives
Managerial Economics - Table of contents