• demonstrate a strong and comprehensive knowledge of the two courses’ curriculum.
• identify, describe, and analyse a current problem at the intersection of business, politics, and society and discuss the implications of different strategic choices within the organisation as well as in relation to its environment.
• the particular objectives of the Business, Politics and Society course are to:
• understand basic concepts used in the fields of political economy and political sociology
• identify, explain and critically assess the relationship between political institutions, public policy and the economy in different social and societal settings
• identify the strengths and weaknesses of the approaches introduced in the course
• the particular objectives of the Managerial Economics II course are to:
• distinguish different types of structures and processes in public and private organisations in a managerial economics perspective
• explain how different transactions are governed and optimised inside the organisation and externally in the market
• apply the methods, theories, and models introduced in the course in order to carry out analyses rooted in managerial economics

Managerial Economics II seeks to furnish students with the ability to apply microeconomic theory to practical problems and societal challenges. At its core, it deals with problems related to coordination which are present in almost all human and organisational interactions. It aims to provide students with an understanding of how practical economic problems may be understood and managed using abstract theoretical models. It draws heavily on microeconomics. But to the degree it is possible, the course seeks to focus on the application of microeconomics rather than dwell on its mathematical derivation of logical conclusions. The course will deal with such issues as prices, property rights, externalities, principal agent issues, contracting, and cognitive biases in decision making. The course this provides insights allowing students to see problems not from the single perspective but also from a global and societal perspective and how the potential solutions may be suboptimal under given conditions.  

The course provides an actionable framework for aspiring and already active managers and business operators, which can help them make better and coherent choices regarding the establishment and growing their business. It also offers insights that allow the students to understand complex associations of an economics system and actively participate in both public and private debates using rigorous economic reasoning. 

The course draws heavily on real-world cases and examples of firm and societal challenges aiming to install capabilities that allow students to develop potential solutions. 

Course Contents:

The objective of this course is to provide students with insights of what happens when we relax some of the main assumptions of standard microeconomic models taught in Managerial Economics I and specifically when assumptions of rationality and perfect information is moderated. The course will seek to cover the most central aspects of societal challenges and apply microeconomic theory to address these challenges. It hence provides the students with a framework for thinking about these challenges in a rigorous and organized manner. It entails powerful tools of reasoning which allow the students to tackle an infinite number of aspects of decision making.

The course includes two workshops with the Business, Politics and Society course which prepares the students for the joint exam.

For more details about the 3rd semester Business in Context exam, see guidelines on CBS CANVAS.

PLEASE CHECK THE UPDATED VERSION OF THE COURSE GUIDES ON CBS CANVAS BEFORE BUYING ANY BOOKS 

The following book is required reading for this course, along with articles made avaliable on CBS CANVAS:  George Hendrikse 2003 Economics and Management of Organizations, McGraw-Hill