Syllabus Statements Required by UTA

ECON 5313 Syllabus

Course Information Course number Economics 5313 Section 001

Course description Application of economic analysis in formulating business decisions, drawing upon the theoretical foundations of the concepts of demand, cost, production, profits, and competition, with special emphasis on case studies.

Location COB 142

Meeting times 7pm-10pm, Tuesday-Thursday – 14 Oct-9 Dec

Prerequisite ECON 5311 or equivalent or consent of instructor.

Textbooks Required reading Managerial Economics: A Problem Solving Approach, Froeb, McCann, Ward & Shor, 3rd Edition, Cengage Leaning Recommended reading The Armchair Economist by Steven E. Landsburg, Free Press

Textbook blog Managerial Econ at managerialecon.blogspot.com Instructor Information Name Prof. Michael Ward

Email [email protected]

Office location 330 COB

Office hours Before and after class.

Phone 817-272-3090 (call only as a last resort e.g. medical emergency)

Course Goals Course Goals To acquaint students with the economic underpinnings of managerial decisions. To allow students to apply economics concepts to an individual problem.

Course Requirements Introduction Course grades will be calculated based on your point total for online chapter quizzes, a course project,and two exams. Online Quizzes 25% Course Project 25%

Exam 1 25%

Exam 2 25%

Requirements Grades will be assigned using the usual scale:

A = 90%

B = 80%

C = 70%

D = 60%

F < 60%

While I have had to assign Cs, Ds and Fs for poor performance in the past, I hate doing so. I will try to insure that no student has to earn a poor grade. All students are welcome to come to office hours. However, students who are struggling the most with course materials have priority over my time and office hours. Please contact me if you think you are in this situation.

Policies Introduction  Students may raise questions about the scoring of an exam or problem set at the time they are returned and/or request that their answers be re-evaluated. Such requests will not be entertained at any later time.  Make-up homework will be allowed only in the case of verified personal crisis or emergency. Requests for conflict final exams require instructor notification two-weeks prior to the exam.  If you think you will need to, please use the restroom before an exam and not during it.  Petitions for incomplete grades will only be entertained if they come from the executor of your estate.  Course information (including this syllabus) will be posted on the course's Blackboard website at http://elearn.uta.edu. Additional information I intend for the classroom experience to complement the book, not replace it. This means that, rather than lecturing, I will be leading in- class discussions, exercises, and experiments that are relevant to the class meeting material. These will require that you have done the reading ahead of time. Please be prepared. Read the assigned chapters before class and do the accompanying online self-tests before class. They will expire on the day we will cover them in class.

Class discussion is encouraged. Feel free to raise a question about how something in the news applies to what we are learning. I even welcome 'stump the professor' questions. But, please practice common courtesy regarding interruptions and disparaging remarks.

Study groups are encouraged.

Do not cheat, copy, plagiarize, or otherwise engage in dishonest activity. It is really not that hard to detect, but it can make my job, and your life, miserable.

Pagers, cell phones, loud digital watches and other similar technological wonders that cause interruptions should be turned off or thrown away. If you use a laptop in class, please sit in the back row so that your games and web surfing will not distract others.

Syllabus Statements Required by UTA

UT Arlington Honor Code: I pledge, on my honor, to uphold UT Arlington’s tradition of academic integrity, a tradition that values hard work and honest effort in the pursuit of academic excellence. I promise that I will submit only work that I personally create or contribute to group collaborations, and I will appropriately reference any work from other sources. I will follow the highest standards of integrity and uphold the spirit of the Honor Code.

Americans With Disabilities Act: The University of Texas at Arlington is on record as being committed to both the spirit and letter of federal equal opportunity legislation; reference Public Law 92-112 - The Rehabilitation Act of 1973 as amended. With the passage of federal legislation entitled Americans with Disabilities Act (ADA), pursuant to section 504 of the Rehabilitation Act, there is renewed focus on providing this population with the same opportunities enjoyed by all citizens.

As a faculty member, I am required by law to provide "reasonable accommodations" to students with disabilities, so as not to discriminate on the basis of that disability. Student responsibility primarily rests with informing faculty of their need for accommodation and in providing authorized documentation through designated administrative channels. Information regarding specific diagnostic criteria and policies for obtaining academic accommodations can be found at www.uta.edu/disability. Also, you may visit the Office for Students with Disabilities in room 102 of University Hall or call them at (817) 272-3364. Academic Integrity: It is the philosophy of The University of Texas at Arlington that academic dishonesty is a completely unacceptable mode of conduct and will not be tolerated in any form. All persons involved in academic dishonesty will be disciplined in accordance with University regulations and procedures. Discipline may include suspension or expulsion from the University.

"Scholastic dishonesty includes but is not limited to cheating, plagiarism, collusion, the submission for credit of any work or materials that are attributable in whole or in part to another person, taking an examination for another person, any act designed to give unfair advantage to a student or the attempt to commit such acts." (Regents’ Rules and Regulations, Series 50101, Section 2.2)

Student Support Services Available: The University of Texas at Arlington supports a variety of student success programs to help you connect with the University and achieve academic success. These programs include learning assistance, developmental education, advising and mentoring, admission and transition, and federally funded programs. Students requiring assistance academically, personally, or socially should contact the Office of Student Success Programs at 817-272-6107 for more information and appropriate referrals.

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All students are assigned an email account and information about activating and using it is available at www.uta.edu/email. New students (first semester at UTA) are able to activate their email account 24 hours after registering for courses. There is no additional charge to students for using this account, and it remains active as long as a student is enrolled at UT-Arlington. Students are responsible for checking their email regularly. Tentative Calendar

Date Chapters Topic Other Materials 14-Oct 1, 2 Introduction; The One Landsburg, “The Iowa Car Crop” Landsburg, “ Why Taxes Lesson of Business are Bad: The Logic of Efficiency” Friedman on Self Interest Video1 and Video2 Milton Friedman, “The Social Responsibility of Business is to Increase its Profits," Frédéric Bastiat, “Candlemakers’ Petition,” Samuel L. Baker, Economics Interactive Tutorials: Cost Concepts, Marginal Cost, Demand Froeb Ch. 1 Video, Ch.2 Video 16-Oct 3, 17 Benefits, Costs, and Froeb Ch. 3 Video Decisions; Uncertainty 21-Oct 19, 20 Adverse Selection; Moral Samuel L. Baker, Risk and Risk Aversion and Insurance, Hazard Landsburg, “The Power of Incentives: How Seat Belts Kill” 23-Oct 4, 5 Extent Decisions; Samuel L. Baker, Average Cost and Break Investment Decisions Even and Discounting, Froeb, Ch. 4 Video, Froeb Ch. 5 Video 28-Oct 6, 18 Simple Pricing; Auctions Samuel L. Baker, Elasticity, Elasticity II, and Monopoly, Landsburg, "Cursed Winners and Glum Losers”, Froeb Ch. 6 Video 30-Oct 7 Economies of Scale and Froeb Ch. 7 Video Scope 4-Nov 8, 9 Understanding Markets; Samuel L. Baker, Supply and Demand, Landsburg, “The Relationships Between Indifference Principle: Who Cares if the Air is Clean?,” Industries Froeb Ch. 8 Video, Froeb Ch. 9 Video 6-Nov Exam 1 11-Nov 10 Strategy Froeb Ch. 10 Video 13-Nov 15, 16 Strategic Games; GameTheory.net Mike Shor's Simultaneous game self test, Bargaining and Sequential game self test, Schelling, T.C. 1960. The strategy of conflict. Harvard University Press. Ch. 2 “An essay on bargaining” (pp. 21-52) and Ch. 5 “Enforcement, communication, and strategic moves” (pp. 119-161. 18-Nov 12 More Realistic & Landsburg, “Why Popcorn costs More at the Movies and Complex Pricing Why the Obvious Answer is Wrong”, Froeb Ch. 12 Video 20-Nov 13, 14 Direct and Indirect Price Froeb Ch. 13 Video, Froeb Ch. 14 Video Discrimination 25-Nov 21, 22 Employee and Divisional Harford "The Fruits of Their Labors" Incentives 27-Nov Thanksgiving 2-Dec 23 Managing Vertical Relationships 9-Dec Exam 2 8:15pm- 10:45pm