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11 Examples of Business Economics

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Business economics is the application of the science of economics to business. This can be used to develop strategies and to model markets, customer behavior and competition. The following are common examples of business economics.

Business Models

The way that businesses capture value.


The different types of value that are created by businesses.


The output created for a unit of input.


The output created for an hour worked.


Tangible and intangible things that are expected to create future value. For example, machines and talent.


Competition in areas such as cost, quality and customer experience and related concepts such as competitive advantage, economies of scale and commoditization.

Business Cycles

Business cycles such as a period of high prices and capital investment followed by a period of low prices and industry decline.


Modeling pricing with supply and demand and concepts such as sticky prices.


Models for marketing communication such as attention economics and six degrees of separation.


Economics related to the sales and delivery of products and services such as economies of density.


Foundations for improving quality of life and reducing environmental damage such as the idea of common goods and tragedy of the commons.
Overview: Business Economics
The application of economics to business.
Related Concepts
More about business economics:
Attention Economics
Benchmark Price
Club Theory
Competitive Market
Economies Of Density
Economies Of Scale
Free Market
Free Trade
Inferior Good
Market Environment
Market Saturation
Price Economics
Price Sensitivity
Price Umbrella
Sticky Prices
More ...
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Club Theory

A business model based on shared infrastructure and resources such as a theme park.


An overview of economic scale with examples.

Marketing Economics

A reasonably comprehensive guide to marketing economics.

Bliss Point

An overview of bliss point, a marketing principle.

Rule Of Three

Why three firms usually dominate an industry.

Mere Exposure Effect

An overview of the mere exposure effect.


A list of ways to compete in a crowded market.

Market Saturation

A definition of market saturation with a few examples.

Premiumisation vs Commodization

The difference between premiumisation and commodization.

Market Position

The primary types of market position.

Consumer Goods

The common types of consumer goods.

Switching Costs

A definition of switching costs with examples.

Keynesian Beauty Contest

An overview of a Keynesian beauty contest, an investing theory.

Efficient Market Hypothesis

An overview of the Efficient Market Hypothesis.

Sticky Prices

Prices that stick to an established range and resist changing economic forces such as inflation.

Random Walk

An overview of random walk, an investing theory.


A definition of markets with examples.

Foreign Direct Investment

The definition of foreign direct investment with examples.

Wealth Definition

The definition of wealth with examples.

Capital Examples

The basic types of capital with examples of each.
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