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Economics 610
Managerial Economics, Fall 2008
ECO 610-401 (6:00-8:30 PM, M)
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Instructor:
William H. Hoyt |
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Syllabus (pdf) for ECO 610-001
Current
Assignment (Monday, December 15th)
Exam 3
Monday, November 17th
• Organizational Design: Centralized vs. Decentralized
• Internal Labor Markets
• Exam Review
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Monday, November 10th
·
Incentives
and the Firm: An Introduction
·
Incentives
and the Firm: Incentive Compensation
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Monday, November 3rd
·
Game Theory
and Strategy: Repeated Games,
Credibility, and Collusion
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·
Hoyt, Lecture
6:13-19
Monday, October 27, 2008
• Market Structure:
Price and Output with Market Power (continued)
• Game Theory and Strategy: Simultaneous Moves
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• Hoyt, Lecture 6:1-13
October 6, 2008
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Topics:
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Costs & Decision Making: Level of Production & Mix of Resources
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Decision Making: Make or Buy and Transfer Pricing
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Double Marginalization and Vertical
Integration
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Relevant Costs
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–
Brickley
et. al, Chapters 5,7; Chapter 19:562-574
Hoyt,
Lecture 3:103-126
September 22, 2008
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·
Pricing with Market Power (continued) |
·
Brickley
et. al, Chapters 5,7; ·
Hoyt, Lectures 2-3:103-115 ·
Homework due (Assignment 1) |
September 15, 2008
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An Introduction to Managerial Economics; Supply and Demand and Market Equilibrium |
Brickley et. al, Chapters 1-2,4:96-114; Hoyt, Lectures 1:1-10 |
Assignments and
Assignment Solutions
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Lecture 1: A Review of Supply and Demand
Lecture 2:
Pricing and Output Strategies: Demand Considerations
Lecture 3: The
Theory of the Firm: Production and Costs
Lecture 4: Wage and
Employment Determination in Theory
Lecture 5: Market
Structure: Perfection Competition, Monopoly, and Monopolistic Competition
Lecture 6:
Oligopoly, Game Theory, and Competitive Strategy
Powerpoint Presentations from
Past Lectures
From the University Bulletin, 2001-2002 (p. 216) "Analysis of
applications of economic theory to management decision making.
Such problems as demand and cost determination, pricing, and capital
budgeting are treated."
While this description covers
some of the material that will be covered in the course, it does not give an
indication of what is the objective of the course. Narrowly, our objective is to examine, using
the tools of economics, a number of business practices and strategies including
pricing, cost determination, compensation, entry and exit, and output
decisions. More broadly the objective of
the course is to both acquaint the student with and help the student learn to
use economic analysis in his or her professional, business pursuits. It is the hope of the instructor to convince
you that economic analysis and economic tools can be of assistance to the
manager and that this course will make you comfortable using these tools in
practice.
Use of Tools of Economics
From previous economics courses,
most of you have been exposed to the use of graphical analysis in economics.
Some of you might also have taken courses in which calculus and algebraic
equations have been used extensively. In this course, some graphical analysis
is used as are algebra and calculus but much less than most intermediate
economics courses. My view is that since it is very unlikely that most of you
will ever use these tools (graphs and calculus) to solve any problems you face
in business, there is not a good reason to train you extensively in their use.
Instead, I shall use graphical analysis and algebra examples only when I think
they add to your understanding of an economic concept or principal. Much more
than in most economic courses, I shall use numerical examples and cases as an
opportunity to see how an economic principal or tool can be applied to business
decision-making. Exams and assignments will also be much more heavily weighted
towards solving simple numerical examples or analyzing actual or hypothetical
cases.
The required text for the course
is:
Brickley, James; Smith,
Clifford; and Zimmerman, Jerold,
Managerial Economics and Organizational Architecture, McGraw Hill –
Irwin, 2007, 4th Edition.
Additionally
chapters from:
Lectures in Managerial Economics is an unpublished manuscript that will be
available (by lecture) at the website. This manuscript contains material used
in a number of sections of the course and complements the material in your
text. These Lectures are not a substitute
for the lecture nor are they a verbatim summary of the lecture. Do not
use them as a substitute for class or taking notes in class. Frequently
different or extended examples not seen in the lecture are included in these
notes.
Grading and Assignment Schedule
Exams
There are three exams for the course,
two during the semester and one during final weeks at the scheduled time. The
exams cover material from class and the text as well as any readings you may be
assigned. The exams will generally
consist of a few brief essay questions, a few problems to be solved, and
possibly a few multiple choice questions, when appropriate. The schedule for the exams is given above.
Exams are generally not cumulative. Each
exam is worth twenty percent of your grade.
The dates of the exams are given in the table below.
Extended
Assignments
There will be three
“extended” assignments during the semester; collectively these are
twenty percent of the grade. These
assignments will involve applying the economic concepts and principles
discussed in the course to make a business decision. Frequently, the assignments are based on
reading and analyzing a specific case.
The due dates for these assignments are given in the table below.
Homework:
Several shorter homework
assignments will be given throughout the term. These homework assignments will generally
consist of a problem or problems to solve based on the material present in
class or the text. Collectively, these count for 20% of your grade. Specific dates have not yet been determined.
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Schedule of Exams, Assignments, and Study
for ECO 610-001 |
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Date |
Task |
Percent of Grade |
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October 6th |
Extended
Assignment 1 due |
6.67 |
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October 13th |
Exam
1 |
20 |
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November 17th |
Extended
Assignment 2 due |
6.67 |
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November 24th |
Exam
2 |
20 |
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December 8th |
Extended
Assignment 3 due |
6.67 |
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December 15th |
Exam
3 |
20 |
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No specific dates |
Homework |
20 |
Participation
Participation is expected to be an
important component of the course and is encouraged. At the end of the term, I
award bonuses for class participation.
The maximum bonus is small, but can matter for your grade in borderline
cases.
Grades are assigned depending on
your point accumulation throughout the term.
In determining your grade, I follow the University rules regarding the
marking system (see
A: Represents exceptionally high achievement.
B: Represents high achievement.
C: Represents average achievement.
D: not used for graduate students
E: Represents unsatisfactory performance and
indicates failure in the course.
Absences and Attendance
There is no explicit attendance policy
for the course, but good attendance is important for doing well in the
course. If you miss a regular class
meeting, it is your responsibility to obtain notes and other material from that
class period (from some source other than me). Most of this material will be on
the website. I am happy to help students with course material during my office
hours or by appointment under the condition that they have attended the class
in which the material was discussed. Office hours are not an opportunity for students
who have missed a class for me to explain the material to them.
Make-up Exams
Students who have a
University-excused absence for missing an exam may take a make-up. Arrangements for a make-up must be made with
the instructor as soon as possible. Make-ups
will be scheduled at a time mutually convenient for the student and the
instructor.
Make-up Homework
Make-up for missed homework is
allowed only in extraordinary circumstances.
Because homework is assigned well in advance of its due date, a University-excused absence on the due date it not
sufficient to merit make-up work for the homework. One must have a University-excused absence
that prevented work on the homework from the period of its assignment to its
due date. Additionally, I release answers
keys for homework as soon as feasible after the due date, making it problematic
to accept late assignments.
Information on Grades
After the first two exams I shall
calculate a grade distribution based on the scores of graded material up to
that point A summary of class scores and the grade distribution will be
provided at the course website. To
ensure privacy, each of you shall be provided a unique identification number.
The scores on the website will be identical to those I have recorded and on which
I base my grades. If you believe any of
your scores on the website are incorrect, please contact me (and provide
support).
Grievance
Procedure
If I have incorrectly added your
points or have appeared not to see some material on the exam, simply bring it
to my attention sometime outside of class. If, however, you believe that your
answer is correct and I have incorrectly interpreted or misunderstood it or my
answer is incorrect, then I will ask you to make a written appeal. Anyone who
feels that a problem or problems on an exam have been incorrectly graded may
submit a written grievance. This
grievance should identify the item in dispute and provide arguments supporting the your position.
Grievances must be submitted within two
class periods following the return of the exam or assignment. Attach your entire exam to the grievance.
Homework assignments will not be regraded other than errors in totaling scores.
Cheating
Cheating is not tolerated at the
Tardiness
Tardiness is discouraged, as it
is very disruptive to the rest of the class and particularly to me. Of course,
as many of you are traveling to campus only for this class, I know it is
sometimes very difficult to predict when you arrive. I ask you to try as much
as possible to arrive on or before the class starts.
Classroom Behavior
To ensure that we can concentrate
during our limited class time, I ask your cooperation on a few things. First,
no cellular telephones should be on. If it is necessary for you to have it on
for emergency reasons, please place it on the vibrator mode. If you need to
talk on the telephone, leave the room. In general, leaving the classroom is
rude and very disruptive but I understand it is sometimes necessary. Finally, extended
discussions between students during lecture are very disruptive to the rest of
the class – if you have a question or need clarification on something ask
me.
Classroom Computer Use
Laptop computers are not to be used
in class at any time unless permission is given by the instructor beforehand.
Office Hours
I welcome and encourage you to come to my office during
office hours. If office hours are not convenient and you would like to talk to
me, please make an appointment (e-mail is probably best) to schedule a meeting
at a more convenient time. If you are having difficulty in the course, please
come to see me as early as possible rather than waiting until a few days before
the exam or, worse, after the exam.
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