Spring, 2015
Oklahoma City University
Managerial Economics – ECON5203-01
Jonathan Willner
Syllabus – preliminary and subject to change
Meeting: MSB222, TR 1100-1215
Office: MSB205G
Phone: x5133
e-mail: [email protected]
Office Hours:
MWF 8:30-10, 2:30-4, TR 8-9, 2:30-4, drop in, by appointment
Table of Contents
Readings,etc. ......................................................................................................................................................................................... 1
Required: ............................................................................................................................................................................................ 1
Suggested ........................................................................................................................................................................................... 1
Course Learning Objectives .................................................................................................................................................................. 1
Course Description ................................................................................................................................................................................ 2
Grading & Assessment .......................................................................................................................................................................... 2
On-line Quizzes: 10% of course grade............................................................................................................................................... 2
Problem Sets: 25% of course grade ................................................................................................................................................... 2
Exams: 20%, 20% and 25% of course grade ..................................................................................................................................... 2
Late assignments ................................................................................................................................................................................ 2
Make-up options ................................................................................................................................................................................ 2
Extra-credit ........................................................................................................................................................................................ 3
Grading Scale ..................................................................................................................................................................................... 3
Academic Honesty ................................................................................................................................................................................ 3
Disclaimer ............................................................................................................................................................................................. 4
Disability Concerns ............................................................................................................................................................................ 4
Preventing Sexual Harassment ........................................................................................................................................................... 4
Evacuation and Shelter Location........................................................................................................................................................... 4
How to study for this class .................................................................................................................................................................... 4
Do: ..................................................................................................................................................................................................... 4
Don’t .................................................................................................................................................................................................. 4
Schedule (subject to change at instructor discretion) ............................................................................................................................ 5
Bibliography .............................................................................................................................................................................................. 6
Readings,etc.
Required:
Managerial Economics & Business Strategy 8th ed., Baye, McGraw Hill,
Articles (collection is on-line)
Suggested:
The Economist
The Financial Times
Extraordinary Delusions and the Madness of Crowds, George Mackay, 1841
The Art of War, Sun Tzu, © 600 B.C.
Where Are the Customers' Yachts? Or A Good Hard Look at Wall Street, 1995 (originally published in 1940)
“Dead Grandmothers” (on-line)
“Why It Pays to Have Tough Professors” (on-line)
Course Learning Objectives
By the end of this course you are expected to be able to understand and use effectively:
1. The basic math of economics: slopes, partial derivatives, time discounting, algebra
2. Comparative statics
3. Elasticity
4. Regression output
5.
6.
7.
Production and cost functions
Baseline market structures
Baseline game theory
Course Description
This course deals with the basic topics of microeconomics: the much cited and frequently misunderstood concepts of
demand, supply and equilibrium- the basic market model. In addition we will be looking at descriptions of and likely
behavior in different market structures. Analytic thought processes are essential to the effective use of economic theory and,
therefore, there will be some emphasis on mathematical constructs including, but not limited to slopes, differentiation and
probability.
You will learn to see economic theory in mainstream articles and how to implement theory in practice. I expect you to
understand when economic theory is being put to work and when it is being ignored. Of course, this means understanding
what economic theory is. Part of understanding any theory is knowing what words mean. In economics definitions are
crucial. Theory: the analysis of a set of facts in their relation to one another i. Notice that theory relies on fact. When someone
says something to the effect that theory and reality are unrelated we can be certain that the individual of interest does not
know what theory is.
Economic theory builds upon itself, much as a house. If the foundation is not solid the house will not stand. It is counterproductive to attempt to frame the first floor if the footings haven’t set. You have chosen to take this course in a 9 week
setting. We will meet for four hours each night. Your preparation for each meeting should be thorough. This means that you
will know the meaning of the words in each assigned chapter before coming to class. You will also have read the assigned
articles and will be able to converse about them.
Grading & Assessment
On-line Quizzes: 10% of course grade
There are a number of on-line quizzes. Most have text, videos and practice versions available. You can take the
practice versions as often as you’d like. You should get immediate responses – what’s the correct answer – when
you take the practice quizzes. The graded versions can be taken only once.
Due dates, etc. are on the calendar on the course page (ocuonline).
Problem Sets: 25% of course grade
There are a series of problem sets to deliver. These need to be delivered on-time (see below) and in good form.
These are group work. I will allow you to form your own groups of 4 or less. Choose wisely.
Exams: 20%, 20% and 25% of course grade
There will be two (2) mid-term exams and a final exam. The mid-term exams will be in-class and take about 1.5
hours. All exams are cumulative.
Late assignments will be given a score of 0. Exceptions exist only for death of or serious hospitalization of an immediate
relative or you and university required activities (athletic event in which you will participate, conference, etc.) In all cases
valid documentation for reason to miss class is required. You might also find a paper on grandparents interesting. If you think
economists are cynical read “The Dead Grandmother/Exam Syndrome and the Potential Downfall Of American Society”
(Adams, 1990) which is available on the course page.
Make-up options are limited. If a valid, documented reason for not delivering an assignment is provided the following
options are provided:
 You will be marked as attending that class period.
 If an in-class quiz or assignment is missed that score for that assignment will be thrown out of your grade
calculation.
 If an on-line quiz is missed, there will be no make-up opportunity if the reason is a planned event (school
function/activity). These are available up to the deadline. If the reason is unplanned the score for that assignment
will be thrown out of your grade.
 If a mid-term exam is missed the other mid-term’s score (percentage) will be used in its stead. If both mid-terms are
missed the final exam score (percentage) will be used.
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Extra-credit
In this class as in all my classes there is only one (1) available extra-credit option available. If, before the end of the semester,
you are the sole author of a refereed journal article in “The Journal of Economic Theory”
(http://www.journals.elsevier.com/journal-of-economic-theory/) or “Econometrica”
(http://onlinelibrary.wiley.com/journal/10.1111/%28ISSN%291468-0262) you will receive an “A” for the course regardless
of any other performance measure. Before embarking on this be sure to see what this might entail. A sample paragraph from
“Econometrica” reads (Jackson, Simon, Swinkels, & Zame, 2004, pg. 1928):
Grading Scale
To calculate your grade simple multiple your percent on each section by the weighting given above (weighted mean). Grades
for the course are: 94% and higher = A, 90-93.9 = A-, 87-89.9 = B+, 84-86.9 = B, 80-83.9 = B-, 77-79.9 = C+, 74-76.9=C,
70-73.9=C-, 60-69.9 = D, less than 60% = F. An incomplete “I” is available only if university conditions for the grade are
met (see OCU Course Catalogue).
Academic Honesty
Academic honesty is required in all aspects of a student’s relationship with the university. Academic dishonesty may
not be course-specific and includes falsification or misrepresentation of a student’s academic progress, status, or
ability, including, but not limited to, false or altered transcripts, letters of recommendation, registration or advising forms, or
other documents related to the student’s academic career at Oklahoma City University or other colleges or universities.
Students are personally responsible for the correctness and accuracy of information supplied to the university. Any student
who knowingly gives incorrect information to the university is subject to disciplinary action that may lead to suspension.
Students are advised that cheating and plagiarism are not tolerated. The university expects all students to maintain a high
standard of ethics in their academic activities. In this context, forms of academic dishonesty include, but are not limited to,
cheating on tests, examinations or other class/laboratory work; involvement in plagiarism (the appropriation of another’s
work and/or the unacknowledged incorporation of that work in one’s own); collusion (the unauthorized collaboration with
another person); misrepresentation of actions; and falsifying information.
See the undergraduate or graduate catalogue for university policy on consequences of violating Academic Honesty.
As per the university policy in this course a first incidence of a violation will result in a 0 for the assignment and a written
report will be filed. Any second violation will result in an “F” for the course and written report.
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Disclaimer
Disability Concerns
“If you believe that you need accommodations for a documented physical, psychiatric, or learning disability, please contact
the Disabilities Services Coordinator at (405) 208‐5090 for an appointment to discuss your needs and the process for
requesting accommodations. The Student Disabilities Services Coordinator is responsible for coordinating disability‐related
accommodations and will issue students a documented Access Plan, as appropriate. Since accommodations may require early
planning and generally are not provided retroactively, please contact the Student Disabilities Services Coordinator as soon as
possible. To speak with the coordinator about other concerns, such as medical emergencies or arrangements in case of a
building evacuation, please make an appointment as soon as possible. Contact Brenda Johnston ([email protected]),
director for Campus Health and Disability Services, located in the Panhellenic Quadrangle, just north of the Methodist Hall
dormitory.”
Preventing Sexual Harassment
Title IX of the Education Amendments of 1972 prohibits sex discrimination against any participant in an educational
program or activity that receives federal funds, including federal loans and grants. Title IX also prohibits student‐to‐student
sexual harassment. If you encounter unlawful sexual harassment or gender‐based discrimination, please talk with your
professor or with the Title IX Coordinator at 405‐208‐5075. Visit http://www.okcu.edu/hr/titleIX/ for more information.”
Evacuation and Shelter Location
Tornado Shelter: 1st Floor North and South hallways and bathrooms
Evacuation Location: West Plaza of the Meinders School of Business.
How to study for this class
For whatever reason, I’m occasionally asked how best to study for this and other classes. Apparently, if nothing else, I’m
very good at taking tests and passing classes, writing papers, etc. Well here’s a list of Dos and Don’ts that work. You are free
to follow or not follow these. If you’re concerned about increasing your knowledge base and improving your thinking skills
these will help.
Do:
1.
2.
3.
4.
5.
Before each class carefully read the assigned reading for the day. It helps to go back a review the previous sections
and chapters now and then.
Write down your comments and questions as you read. Bring those up in class.
Do all the practice exercises in the text and the ones that have answers in the back of the text. Do them before the
class meeting on that Chapter and Section. Don’t know how to do it? Ask during class.
In class take extensive notes. “The student as scribe” is a very effective way to learn.
Perhaps most important is a general principle: Get Ahead! Stay Ahead!
Don’t
1.
2.
3.
fall behind
fail to ask questions when something doesn’t make sense or doesn’t work for you
procrastinate
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Schedule (subject to change at instructor discretion)
January
Sun.
Monday
Tuesday
Thursday
Fri. Sat.
1
2
3
7
8
9
10
17
4
5
11
12 11:00 AM Be sure you're reading Notes on
Math, watching the videos and taking the
associated quizzes!
13 11:00 AM Have read Ch. 1
14
15 11:00 AM Have read Ch. 1
11:00 AM Bring a blank copy of PS 01 - 16
Opportunity Cost
18
19 11:00 AM Be sure you're reading Notes on
Math, watching the videos and taking the
associated quizzes!
20 11:00 AM Have read Ch. 1
21
11:00 AM Bring a blank copy of PS 02 - NPV
22 11:00 AM Have read Ch. 1
11:00 AM Graded: The Value of the firm
and PE - Availability Ends
23
11:00 AM Graded: Finding the slope Availability Ends
24
26 11:00 AM Be sure you're reading Notes on
Math, watching the videos and taking the
associated quizzes!
27 11:00 AM Graded: Equilibrium &
Objective Functions - Availability Ends
11:00 AM Graded: Finding extreme values Availability Ends
11:00 AM Have read Ch. 1
11:00 AM Bring a blank copy of PS 03 Marginal Analysis
29 11:00 AM Have read Ch. 2
11:00 AM Graded: Equilibrium - 2
equations in 2 unknowns - Availability
Ends
31
25
6
Wed.
28
30
February
Sun.
Monday
Tuesday
Wed.
Thursday
Fri. Sat.
4
5 11:00 AM Have read Ch. 2
11:00 AM Graded: Math Primer Availability Ends
6
11:00 AM Bring a blank copy of PS 05 Comparative Statics
7
9 11:00 AM Be sure you're reading Notes on Math, 10 11:00 AM Turn in a completed PS 06 watching the videos and taking the associated
Comparative Statics Readings
quizzes!
11:00 AM Have read Ch. 3
11
12 11:00 AM Have read Ch. 3
11:00 AM Bring a blank copy of PS 07 - 13
Elasticity
14
15
16 11:00 AM Be sure you're reading Notes on
Math, watching the videos and taking the
associated quizzes!
17 11:00 AM Have read Ch. 3
18
19 11:00 AM Have read Ch. 3
11:00 AM Bring a blank copy of PS 08 - 20
Regression Analysis
21
22
23 11:00 AM Be sure you're reading Notes on
Math, watching the videos and taking the
associated quizzes!
24 11:00 AM Have read Ch. 3
11:00 AM Graded: Regression - Availability
Ends
25
26 Midterm Exam 1 11:00 AM
28
1
2 11:00 AM Be sure you're reading Notes on Math, 3 11:00 AM Bring a blank copy of PS 04 watching the videos and taking the associated
Equilibrium and Comparative Statics
quizzes!
11:00 AM Have read Ch. 2
8
27
March
Sun.
1
8
Monday
Tuesday
2 11:00 AM Be sure you're reading Notes on Math,
watching the videos and taking the associated
3 11:00 AM Have read Ch. 5
quizzes!
9 11:00 AM Be sure you're reading Notes on Math,
watching the videos and taking the associated
10 11:00 AM Have read Ch. 5
quizzes!
Wed.
4
11
15
16 11:00 AM Be sure you're reading Notes on
Math, watching the videos and taking the
associated quizzes!
17 11:00 AM No class - Spring Break
22
23 11:00 AM Be sure you're reading Notes on
Math, watching the videos and taking the
associated quizzes!
24 11:00 AM Turn it a completed copy of PS
11 - Production and Cost Functions Readings 25
11:00 AM Have read Ch. 7
29
30 11:00 AM Be sure you're reading Notes on
Math, watching the videos and taking the
associated quizzes!
31 11:00 AM Bring a blank copy of PS 14 Mergers & Acquisitions
11:00 AM Have read Ch. 7
18
Thursday
Fri. Sat.
5 11:00 AM Have read Ch. 5
11:00 AM Bring a blank copy of PS 10 - 6
Production and Cost Functions
12 11:00 AM Have read Ch. 5
11:00 AM Bring a blank copy of PS 12 13
Isocost and Isoquant Analysis
7
14
19 11:00 AM No class - Spring Break
20
21
26 Midterm 2 11:00 AM
27
28
5
April
Sun.
Monday
Tuesday
Wed.
Thursday
Fri. Sat.
1
2 11:00 AM Have read Ch. 8
3
4
5
6 11:00 AM Be sure you're reading Notes on
Math, watching the videos and taking the
associated quizzes!
7 11:00 AM Bring a blank copy of PS 15 - PC
Markets
11:00 AM Have read Ch. 8
8
9 11:00 AM Have read Ch. 8
10
11
12
13
14 11:00 AM Have read Ch. 8
11:00 AM Bring a blank copy of PS 16 - Market
Math
15
16 11:00 AM Have read Ch. 10
17
18
19
20
21 11:00 AM Have read Ch. 10
11:00 AM Bring a blank copy of PS 17 - Game
Theory Simul Movers
22
23 11:00 AM Have read Ch. 10
24
25
26
27
28 11:00 AM Have read Ch. 10
11:00 AM Bring a blank copy of PS 18 - Game
Theory
29
30 11:00 AM Have read Ch. 9
May
Sun.
3
Monday
4
Tuesday
5
Wed.
6
Thursday
7 Final Exam 10:00 AM
Fri. Sat.
1
2
8
9
Bibliography
Adams, M. (1990). The Dead Grandmother/Exam Syndrome and the Potential Downfall Of American Society. The Connecticut
Review.
Jackson, M. O., Simon, L. K., Swinkels, J. M., & Zame, W. R. (2004, November). Corrigendum to "Communication and Equilibrium
in Discontinuous Games of Incomplete. Econometrica, 72(6), 1927-1929.
i
http://www.merriam-webster.com/dictionary/theory downloaded July 2, 2009
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