# Decision Making

- A problemsolving approach - 2 3 4 5 6
- A simple model of the capital budgeting process
- A1 Nature of inference in the OLS model
- A2 Assumptions
- A3 Calculations for statistical inference
- A4 Consequences of assumptions
- A5 Estimation
- A6 Hypothesis testing
- A7 Confidence intervals for forecasts
- Acknowledgements
- Adjustment to changes in demand
- Advantages of multiple regression
- Algebraic analysis of equilibrium - 2 3
- Alternative approaches
- An approach to marketing mix optimization
- Analysis
- Appendix B Problems of the OLS model
- Application
- Application of OLS
- Application of the learning curve
- Application of the model
- Assumptions - 2
- Attitudes to risk
- B2 The identification problem
- B3 Violation of assumptions regarding the error term
- B4 Multicollinearity
- Barriers to entry and exit
- Basis of government policy
- Benefit advantage
- Cash flow analysis
- Changes in input prices
- Characteristics of markets
- Classification of costs
- Collusion and cartels
- Comparison of net present value and internal rate of return
- Comparison with oligopoly
- Comparison with perfect competition and monopoly There are four areas where comparison can be made
- Competitive advantage
- Competitive advantage price elasticity and pricing strategy
- Complex marketing mix interactions
- Conclusions
- Conditions - 2 3 4
- Consumer surveys
- Consumer theory
- Contents
- Context - 2
- Contracts and bounded rationality
- Controllable factors
- Correlation
- Cost advantage
- Cost estimation
- Cost of debt
- Cost theory
- Crosselasticity a Definition
- Decisionmaking under risk
- Decisionmaking under uncertainty
- Definition
- Definition and conditions
- Definition and types
- Demand
- Demand and quantity demanded
- Demand and revenue
- Demand and supply
- Demand estimation
- Demand interrelationships
- Derivation of cost functions from production functions - 2
- Derivation of the shortrun inputoutput table
- Detailed contents
- Detection of monopoly
- Determining the optimal combination of inputs
- Determining the optimal use of the variable input
- Different forms of cost function - 2
- Different forms of cost function interpretation and selection a Forms
- Diseconomies of scale
- Dummy variables
- Dynamic games
- Dynamic relationships
- Early stages of the product lifecycle
- Economic organizations
- Economics
- Economies of scale
- Economies of scope
- Efficiency - 2
- Efficient markets hypothesis
- Elasticity
- Equilibrium
- Equilibrium of IO and MCC
- Ethics
- Evaluating tradeoffs
- Evaluation criteria
- Explicit and implicit costs
- Externalities
- Factors determining demand
- Factors determining relationships with output
- Finitely repeated games
- Fixed factors
- Game theory
- Games with uncertain outcomes
- Graphical analysis of equilibrium - 2 3
- Hidden action
- Historical and current costs
- Identification of cash flows
- Imperfect information
- Implications of empirical studies - 2 3
- Importance of cost estimation for decisionmaking
- Importance of costs for decisionmaking
- Importance of government policy
- Income elasticity a Definition
- Increasing and diminishing returns
- Infinitely repeated games
- Inputoutput tables
- Internal rate of return
- Interpretation of equations
- Interpretation of the model results
- Introduction - 2 3 4 5 6 7 8
- Investment analysis
- Isoquants
- Joint products
- Lack of importance of price
- Later stages of the product lifecycle
- Learning economics
- Limitations - 2
- Limitations of CVP analysis
- Limitations of game theory
- Managerial Economics
- Managerial policy
- Marginal analysis
- Market experiments
- Market positioning segmentation and targeting
- Mathematical forms
- Mathematical models
- Meaning of demand
- Measurement of cash flows
- Measurement of profit
- Measurement of risk
- Methodology - 2
- Methods
- Mixed strategies
- Model specification
- Monopolies
- Moral hazard and efficiency wages
- Motivation theory
- Multiple regression
- Multiproduct strategies
- Nash bargaining
- Nature and components
- Nature and scope of game theory
- Nature of competitive advantage
- Nature of measurement problems a Ambiguity in measurement
- Nature of risk in capital budgeting
- Nature of the model - 2
- Net present value
- Notes - 2 3 4 5 6 7 8 9 10 11
- Objectives - 2 3 4 5
- Objectives of government policy 6 7 8 9 10 11 12
- Oligopoly
- Oligopolymodels
- Operating leverage
- Other criteria
- Other pricing strategies
- Demand Analysis
- Pedagogical features
- Perceived price
- Perceived quality
- Perceived value
- Planning
- Preface
- Presentation of data a Tables
- Presentation of topics
- Price discrimination in the European Union
- Price elasticity
- Price leadership
- Pricing
- Pricing and price elasticity of demand
- Pricing strategy
- Private and social costs
- Privatization and regulation
- Problems - 2 3 4 5
- Problems in longrun cost estimation
- Problems in shortrun cost estimation 6 7 8 9
- Product line profit maximization
- Product mix profit maximization
- Production And Cost Analysis
- Production functions
- Production functions and marginal product
- Production interrelationships
- Production theory
- Products with imperfectly competitive external markets
- Products with no external market Consider the following situation
- Products with perfectly competitive external markets
- Profit contribution
- Profit maximization revisited
- Promoting competition
- Promotional elasticity
- Property rights
- Property rights theory
- Public goods
- Public ownership
- Purpose and assumptions
- Relationship with business functions
- Relationship with decision sciences
- Relationship with economic theory
- Relationships between short and longrun cost curves
- Relationships between structure conduct and performance
- Relationships between total marginal and average product
- Relevant costs for decisionmaking
- Repeated games
- Returns to scale
- Review questions - 2 3 4 5 6 7 8 9 10 11
- Risk and objectives
- Risk and the agency problem
- Risk and uncertainty
- Role of pricing in managerial decisionmaking
- Satisficing
- Scale
- Scientific theories
- Segmentation and targeting
- Selecting the best model
- Shortrun cost estimation
- Significance of the product lifecycle
- Sources of data
- Stackelberg oligopoly
- Static games
- Statistical methods
- Statistical models
- Strategy implications
- Structure and content
- Summary - 2 3 4 5 6 7 8
- Summary of cost concepts 9 10 11
- Sunk and incremental costs
- Surveys of business objectives
- Tables graphs and equations a Tables
- The agency problem
- The basic profitmaximizing model
- The coefficient of determination
- The constant elasticity model a Nature of the model
- The investment opportunity IO schedule
- The kinked demand curve model
- The learning curve
- The long run - 2
- The marginal cost of capital MCC schedule
- The marginal rate of technical substitution
- The nature and significance of capital budgeting
- The OLS method
- The optimal capital budget
- The pricequality relationship - 2
- The public sector and nonprofit organizations
- The short run
- The structureconductperformance SCP model
- The theory of the firm
- Tools of analysis demand and supply
- Transaction cost theory
- Transaction costs
- Types of capital expenditure
- Types of cost scenario
- Types of data
- Types of empirical study - 2
- Types of game
- Types of market structure
- Types of price discrimination
- Types of specification
- Types of unit cost
- Usefulness
- Value creation
- Weighted average cost of capital