Microeconomics

Life at a B school is strikingly different from an engineering college. At an engineering college you spend your days carelessly, little caring about your placements. But at a B school it is competitive. Everyone here is aspiring to be manager. Everyone is trying to sell himself, trying to go one up another.
Inspired by my Microeconomics course I am beginning to realize
that behavior of every individual in a B school can be generalized by Microeconomics model.
First in B school every individual can be modeled as a firm. Then a clear distinction must be made between males and females. We will call male participants as Type A firms and female participants as Type B firms. The Professor are economic regulators. B school is the market. The unique thing about the market is that buyers are sellers themselves. People do brand building and sell themselves to each other. So we have now until now defined

Market IIM
Regulatory body Professors
Sellers: Students
Types of firm : Male , Female
Commodity: Study ,Learning Knowledge
Price: Grades

Type A firms and Type B firms capital structures are very different. Though both the firms are trying to maximize their revenues through maximizing their price. The firms vary in nature of their short term and long term planning. In B School most of the type A and type B firms are very strategically oriented. They are willing to let go of their profits for long term gains. Type A and Type B firms capital structures are also very different. Hence their risk return profile are different. It is a fundamental principal in finance that merger of 2 very different companies mitigate their unique risk and increase their returns.  So most of the type of type A and type B firms have been looking strategic merger alliance between them. But number of type B firms is very less. Moresover many of the type B firms are already under contractual obligation forbidding them from such an alliance. Finally it has been observed that firms which secure the strategic alliance are among the most profitable firms in the market.

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