Biresh Sahoo, PhD

Professor, XIM, Bhubaneswar

MEM Lecture 1: An Introduction

About me in brief
Over 15 years of teaching experiences after Ph.D.
Recipient of three (prestigious) postdoctoral fellowships:

JSPS Fellowship by the Ministry of Education, Japan for 12

consecutive months in 2001-02.
Lise Meitner Fellowship by the Board of Austrian Science Fund,
Austria for 12 consecutive months in 2008-09
(I am the first person from India so far to receive this fellowship).
Postdoctoral Fellowship by the FRCT, Govt. of Portugal for 36
months in 2007-08.
Second prize Winner for AIMS International Young Management
Researcher Award in 2008
Recipient of the AIJM Outstanding Editor of the Year Award by the
AIMS International in 2012
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 Qualified UGC NET for Lectureship in Economics (major:

Econometrics) in 1995.
Member of the Editorial Board of five international journals:
AIMS International Journal of Management (AIMS

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International)
International Journal of Information Systems and Social
Change (IGI Glabal)
The Open Management Journal (Bentham Open)
International Journal of Research in Industrial Engineering
(Novel Science)
Journal of Applied Science and Engineering Management (Novel
Science)

 Post-doc. job experience in Research

2001-2002 (12 months): JSPS Fellow at the National Graduate
Institute for Policy Studies (GRIPS), Tokyo, Japan
2008-2009 (12 months): Lise Meitner Fellow at the Vienna
University of Economics and Business (WU-Wien), Austria
2004 (March): Research Fellow at GRIPS, Tokyo, Japan
2004 (Dec.): Research Fellow at GRIPS, Tokyo, Japan
2006 (Jan-Feb.): Visiting Scholar at GRIPS, Tokyo, Japan
2007 (Jan-Feb.): Visiting Scholar at GRIPS, Tokyo, Japan
2009 (March): Visiting Scholar at GRIPS, Tokyo, Japan
2012 (Feb.): Visiting Scholar at GRIPS, Tokyo, Japan
2012 (April 3-17): Visiting Professor in JNU, New Delhi
2013 (April 1-14): Visiting Professor in JNU, New Delhi
Credited with 21 publications so far in various scholarly

journals of repute (as per NUS and ABS ranking lists), four
book chapters in edited volumes and three books

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 My research works have appeared in the following journals:

European Journal of Operational Research (Elsevier Science)
Omega: The International Journal of Management Science (Elsevier Science)
International Journal of Production Economics (Elsevier Science)
Annals of Operations Research (Springer)
Ecological Economics (Elsevier Science)
Socio-Economic Planning Sciences (Elsevier Science)
International Journal of Systems Science (Taylor Francis)
International Transactions in Operational Research (Wiley-Blackwell)
Journal of the Operations Research Society of Japan
Journal of Quantitative Economics (Indian Econometric Society)

Authors h-index: 12 | Total Citations: 436 (as of July 3, 2014)

(Source: http://scholar.google.co.in/citations?hl=en&user=tKolDVgAAAAJ)

(A scientist has index h if h of his/her N papers have at least h

citations each, and the other (N h) papers have at most h citations
each)
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The co-authors of research publications are

Kaoru Tone, GRIPS, Tokyo, Japan
Ken Nakabayashi, Ministry of Defense, Tokyo, Japan
Jati Sengupta, University of California, USA

Joe Zhu, Worcester Polytechnic Institute, USA

Mikulas Luptacik, WU-Wien, Austria
Bernhard Mahlberg, WU-Wien, Austria

Jess T. Pastor, University Miguel Hernandez of Elche, Spain

Juan Aparicio, University Miguel Hernandez of Elche, Spain
Bernhard Klemen, Morgan Stanley, London, UK
M. Mehdiloozad, Shiraz University, Iran
S. M. Mirdehghan, Shiraz University, Iran
Israfil Roshdi, Islamic Azad University, Iran
Debashis Acharya, Univ. of Hyderabad, Hyderabad, India
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 Serving as Reviewer for several scholarly journals

Area of Research Interest

- Efficiency and Productivity Analysis

- Benchmarking
- Data Envelopment Analysis
My contribution to XIMBs Intellectual Capital (IC) [as per
ASB/NUS ranking lists]
Tier 1 Tier 2

Tier 3

Tier 4

Total

Total no. of publications

10

17

15

50

My contribution (no.)

21

My contribution (%)

90.00

29.41

37.50

26.67

42.00

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MEM course contents and evaluation criteria

Course contents (three modules)
Module I: Consumer behavior and demand analysis (8 sessions)
Module II: Production decisions and cost-output relationship (8

sessions)
Module III: Pricing under different market structures (4 sessions)

Evaluation criteria (five components)

Quizzes (5 out of 7)

: 40% (= 5 x 8)
Assignments
: 10%
Class-room participation : 05%
Attendance
: 05%
End-term examination : 40%

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What is Microeconomics?
A branch of economics that deals with the
behavior of individual economic units consumers, firms, workers, and investors - as
well as the markets that these units comprise.

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Business vs. Economics

How does Business differ from

Economics?
First lesson of business: How to make
money

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 Business: money making opportunities

To identify it, one needs to understand how wealth is
created and destroyed.
Wealth is created when assets are moved from lowerto higher-valued uses.
A persons value for a good/service is the amount of
money he/she is willing to pay for it.
This willingness requires both desire for the good
and the ability to pay for it.
Value a product how buyer and seller perceive it?
While a buyers value for an item is how much he
will pay for it, a seller wont accept less than her
value, cost.
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 Capitalism creates wealth by letting people follow

their self-interest (How?)
A buyer willingly buys if the price is below his/her
value, and a seller sells if the price is above her value
both buyer and seller gain; otherwise, they wont
transact.
Voluntary transactions creates wealth.

An Example: Suppose that a buyer values a house at

Rs.20 lakh and a seller at Rs. 15 lakh. If they can
agree on a price say, Rs. 18 lakh the seller receives
Rs. 3 lakh more (producer surplus) and the consumer
receives it worth Rs. 2 lakh more than he is willing to
pay for it (consumer surplus).
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 Economics is useful to business as it shows how to spot

money-making opportunities.

Economists search for assets in lower-valued uses and

then suggest public policies to move them to higher
valued ones.
A good policy is one that increases efficiency by
facilitating the movement of assets to higher-valued
uses; and a bad policy is one that prevents assets from
moving to higher-valued uses or, worse, move assets to
lower-valued uses.
Determining whether an economic policy is good or bad
requires analyzing all of its effects the unintended as
well as the intended effects.
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 Having identified inefficient outcomes, economists will

argue for changes in public policies. Economists see

inefficiency as something to be eliminated through
better public policy.
However, business people see inefficiency as something
to be exploited they realize that inefficiency implies
opportunity. If an asset is not employed in its highestvalued use, someone can make money by moving it. In
this way business can sometimes mitigate the harmful
effects of bad policy.
First lesson of business (How to make money): find
an asset employed in lower-valued use, buy it, and then
sell it to someone who puts a higher value on it. Each
underemployed asset represents a potential wealthcreating transaction.
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