Mangerial Economics / Business Economics  

Bahçeşehir University

Prof.Dr. M. Özgür Kayalıca


Web    :

Office Hours: Wednesday 15:30-16:30

                         Thursday    16:30-17:30

      İTÜ İşletme Fakültesi Dek., Maçka



Managerial Economics

This course provides a broad overview of economics suitable as an introduction to all graduates. It is designed to develop students’ knowledge of economic ideas in the context of contemporary issues using the tools of elementary economic analysis. Students are shown how to apply economic reasoning to a range of problems relevant for understanding the mechanisms and institutions, which allocate and distribute resources. Students are introduced to theories of individual (micro) behaviour, including consumer decision-making as well as firms’ conduct in different market structures.



Midterm : 8th Week   : 40%

Final  : TBA              :   60%



Michael Baye, Managerial Economics & Business Strategy, 5/e


Other reading materials:

R.S.Pindyck and D.L. Rubinfeld, Microeconomics, 6th Edition, Prentice-Hall, 1998.

J. Sloman, Economics, 5th edition, Prentice-Hall, 2003.

Kepenek, Y. ve Yentürk, N. 2001. Türkiye Ekonomisi, 18. baskı, Remzi Yay. İstanbul.

Yentürk, N. 2005. Körlerin Yürüyüşü: Türkiye Ekonomisi ve 1990 sonrası Krizleri, 2. Baskı. İstanbul Bilgi Üniversitesi Yayınları, İstanbul.


It will not be possible to cover in detail all of the material in the course of the lectures, so reading the texts is essential. Moreover, the texts do not deal with all of the material reviewed during the lectures. Although lecture notes will often be made available, attending lectures is strongly advised for properly coming to grip with the course material.



                Part 1 Microeconomic foundation (12 Weeks)

Introduction to Economics (In class discussion and general reading).

The Fundamentals of Managerial Economics, (Ch1 Baye).

Market Forces: Demand and Supply, (Ch2 Baye)

Quantitative Demand Analysis, (Ch3 Baye)

The Theory of Individual Behavior, (Ch4 Baye)

The Production Process and Costs (Ch5 Baye)

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets (Ch8 Baye)

Basic Oligopoly Models (Ch9 Baye)

Pricing Strategies for Firms with Market Power, (Ch10 Baye)

Game Theory: Inside Oligopoly (Ch11 Baye)

A Manager’s Guide to Government in the Marketplace (Ch14 Baye)

Advanced Topics in Business Strategy (Ch13 Baye)


Part 2 Macroeconomics and the Turkish Economy (1-2 Weeks)


Lecture Notes: You should follow the link for updated notes:







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