Engineering Economics Research
- [Paris Sciences et Lettres]
Engineering economics, formerly known as engineering economics, is a subset of economics that involves the use and "…application of principles of economics" in engineering decision analysis. As a discipline, it focuses on a branch of economics known as microeconomics because it studies the behavior of individuals and companies when making decisions about the allocation of limited resources.
Therefore, it focuses on the decision-making process, its context and environment. It is pragmatic in nature, combining economic theory with engineering practice. However, it is also a simplified application of microeconomic theory, as it assumes that factors such as price determination, competition, and demand/supply are fixed inputs from other sources. However, as a discipline, it is closely related to other disciplines such as statistics, mathematics and cost accounting. It draws on the logical framework of economics, but adds the analytical power of mathematics and statistics.
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