Corporate Economics 752 (3 credits)

Syllabus

Executive MBA Program
 Sheldon B. Lubar School of Business
University of Wisconsin - Milwaukee
 Spring, 2011


INSTRUCTOR: Richard D. Marcus, Ph.D., Associate Professor

Professor Bio Designed for the EMBA Program: https://pantherfile.uwm.edu/marcus/www/Bio2011.html

FACULTY OFFICE: Lubar Hall S430F

Office Hours: Tuesday 11:00 AM - noon and Thursday noon-1:00 PM. Office hours also will be available by appointment to allow for the greatest flexibility of schedules for the EMBA students.

Telephone: 414-229-4103 (faculty office) or 414-228-7731 (home).  My faculty mailbox is located on the 4th floor of Lubar Hall.

E-mail: marcus@uwm.edu

Homepage: https://pantherfile.uwm.edu/marcus/www/

TEXTBOOKS:

FM: Luke Froeb and Brian McCann, Managerial Economics: A Problem Solving Approach, South-Western, second Edition, 2010.

BG: Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes and How to Correct Them, Revised and Updated, Simon and Schuster, 2010.

MBN: Roger LeRoy Miller, Daniel Benjamin, and Douglass North, The Economics of Public Issues, 16th Edition, Addison Wesley, 2010.

OBJECTIVE: Economic analysis of problems in business and public policy issues so that an EMBA graduate will be able to think and speak like an economist. The topics include traditional issues of price elasticities, cost and production functions, as well as newer topics from behaviorial financial economics, price discrimination, the psychology of price, and game theory.

TESTS: There will be a midterm test on Saturday, February 25, 2011 and there will be a final on Saturday, May 14, 2011. The midterm is worth 50% and the final is worth 50%. Both exams will explore questions on pricing tactics, collusive practices, and behaviorial economics. Some questions in both exams will involve issues explored in classroom discussions on public policy issues.

CLASSROOM POLICIES: UWM has long-standing policies on academic misconduct, sexual harassment, discrimination, and changes of grade. These policies are available at: www.uwm.edu/~marcus/policies.html.

SPECIAL NEEDS: If anyone has need for note-taking or test-taking assistance,please feel free to discuss this with me early in the session. Worked problems and old exams are available on Desire2Learn at http://d2l.uwm.edu/ using your UWM email name and password.


Class Schedule for Corporate Economics 752

January 14 -  Capitalism and Price Elasticities (FM: Chapters 1, 2 and 6; and also MBN: Chapter 8 - Are We Running out of Water? and Chapter 4: The Mystery of Wealth).

January 22 -  Techniques for Estimating Consumer Demand (FM: Chapters 3 and 8; and also MBN: Chapter 1 - Death by bureaucrat).

January 28 -  Production and Cost Analysis (FM: Chapters 4 and 7 and also MBN: Chapter 26 - The Trashman Cometh).

February 5 - The Nature of Industry and Competition (FM: Chapters 9 and 10; and also MBN: Chapter 23 - Raising Less Corn and More Hell).

February 11 - Monopoly, Monopolistic Competition, and the Economics of Crime (FM: End of Chapter 9; and MBN: Chapter 19 - Keeping the competition out & MBN: Chapter 24 - Crime and Punishment).

February 19 - Uncertainty, Signaling, Asymmetric Information, Moral Hazard, and a few Theories of Regulation (FM: Chapters 17, 19, and 20).

February 25 - Midterm Test

March 5 - Pricing Strategies and Price Discrimination (FM: Chapters 12, 13, and 14; and also MBN: Chapter 17: Coffee, Tea, or Tuition-Free?).

March 11 - Oligopoly (MBN: Chapter 15 - Big Oil, Big Oil Prices? and Chapter 16- Contracts, Combinations, and Conspiracies).

April Fool's Day (aka April 1) - Strategic Games (FM: Chapters 15 and 16; and also MBN: Chapter 2 - Ethanol Madness and Chapter 31 - The $750,000 Steelworker).

Uncle Sam Wants Your Tax Payments Day (aka April 15) - Behavioral Economic Traps (BG: Chapters 4-7 and Conclusion; and also MBN: Chapter 29 - Greenhouse Economics).

April 30 - The Psychology of Price (BG: Chapters 1-3 and Introduction and a (Mercifully) Brief History of Economics; and also MBN: Chapter 20 - Mortgage Meltdown).

May 6 - Price Discovery, Auction Markets, Agency Problems, and Economic and Financial Event Studies (FM: Chapters 18, 21, 22 and 23; and also MBN: Chapter 5 - Sex, Booze, and Drugs).

May 15 - Final Exam