COURSE GOALS To develop students the economic foundations of managerial decision making. To introduce students to issues that have a profound impact on the success of organizations producing goods or delivering services. To develop students applicable skills of managerial decision making that enables an organization to achieve a competitive advantage vis-à-vis its regional/global competitors. LEARNING OBJECTIVES Students will be able to: Understand how the price of a product or service is determined. Master the demand-supply model. Understand the concepts and models related to market structure. Analyze product/service pricing with market power. Learn the strategic thinking and business strategy, incentives and organization design. Be able to make decisions under uncertainty Understand government policy toward business (including issues related to externality and asymmetric information). ASSESSMENT SUMMARY Assignments 30% Exam 50% Participation 20% - 1 -
COURSE INFORMATION Division: Operation and Logistics Term/period: Summer 2016 Instructor: Prof. Anming Zhang Teaching Assistant: Email: anming.zhang@sauder.ubc.ca Email: Phone: (604) 822-8420 Phone: Office hours: Office hours: Section number: Class meeting times: Course duration: July 15-17, 2016 Classroom location: Pre-requisites: Tutorials / labs: Course website: BRIEF COURSE DESCRIPTION This course will develop the economic foundations of managerial decision making. It deals with issues that have a profound impact on the success of organizations producing goods or delivering services. Students will learn about, among others, how the price of a product or service is determined, the demand-supply model, concepts and models related to market structure, product/service pricing with market power, strategic thinking and business strategy, incentives and organization design, decision making under uncertainty, government policy towards business (including issues related to externality and asymmetric information). Due to the broad nature of the subject, we will focus on the application of concepts and models to managerial decision making that enables an organization to achieve a competitive advantage vis-à-vis its regional/global competitors. COURSE MATERIALS & REQUIREMENTS Required Textbook: Managerial Economics and Strategy (First Edition, 2014) by Jeffrey M. Perloff and James A. Brander. Class notes: I will distribute class notes prior to our meeting. - 2 -
SCHEDULE Class# CLASS TOPICS ACTIVITIES / READINGS Class 1 July 15 Lecture 1: Introduction to Managerial Economics; Demand-Supply Analysis; Productions and Cost Analysis; Competitive Market and Economic Efficiency Required: Chapters 1 and 2 Partially required: Chapters 5 and 6 Recommended: Chapters 3 and 8 Class 2 July 16 Morning Class 3 July 16 Afternoon Lecture 2: Firm Organization and Market Structure; Pricing with Market Power Lecture 3: Game Theory; Business Strategy Required: Chapter 10 Recommended: Chapters 7, 9, and 11 Required: Chapters 12 and 13 Class 4 July 17 Morning Lecture 4: Managerial Decision Making Under Uncertainty; Asymmetric Information; Incentives and Organization Required: Chapters 14 and 15 Class 5 July 17 Afternoon Lecture 5: Government and Business; Global Business; Course Review Required: Chapter 16 Recommended: Chapter 17-3 -
TEACHING & LEARNING ACTIVITIES Class meetings will consist of a combination of lectures, in-class discussions, in-class exercises, and other activities. Case studies will be conducted, and the applications and examples related to China will be discussed. I will also leave an assignment (a set of problems) for you to complete after the module ends. This assignment will help you prepare for the exam. COURSE AND INSTITUTIONAL POLICIES Attendance: As per RHL policy on Professionalism, Attendance and Behaviour, students are expected to attend 100% of their scheduled classes. Students missing more than 20% of scheduled classes for reasons other than illness will be withdrawn from the course. Withdrawals, depending on timing, could result in a W or an F standing on a student s transcript. Students must notify their instructors at the earliest opportunity if they are expected to miss a class due to illness. A medical note from a licensed, local doctor is required if more than 20% of scheduled classes for a course are missed due to illness. Students are required to notify the Student Experience Manager if they are absent from two or more classes due to illness. Tardiness: As per RHL policy on Professionalism, Attendance and Behaviour, students are expected to arrive for classes and activities on time and fully prepared. Late arrivals may be refused entry at the discretion of the instructor or activity lead. Students arriving halfway through a scheduled class, or later, will be treated as absent for that class. Electronic Devices: As per RHL policy on Professionalism, Attendance and Behaviour, laptops and other electronic devices (cellphones, tablets, personal technology, etc.) are not permitted in class unless required by the instructor for specific in-class activities or exercises. Cellphones and other personal electronic devices must be turned off during class and placed away from the desktop. Students who fail to abide by the RHL lids down policy will be asked to leave the room for the remainder of the class. Research has shown that multi-tasking on laptops in class has negative implications for the learning environment, including reducing student academic performance and the performance of those sitting around them. ACADEMIC INTEGRITY All UBC students are expected to behave as honest and responsible members of an academic community. Failure to follow appropriate policies, principles, rules and guidelines with respect to academic honesty at UBC may result in disciplinary action. It is the student s responsibility to review and uphold applicable standards of academic honesty. Instances of academic misconduct, such as cheating, plagiarism, resubmitting the same assignment, impersonating a candidate, or falsifying documents, will be strongly dealt with according to UBC s procedures for Academic Misconduct. In addition to UBC s Academic Misconduct procedures, students are responsible for reviewing and abiding by RHL s policy on Academic Integrity. - 4 -
LATE ASSIGNMENTS Late submissions will not be accepted and will receive a zero. OTHER INFORMATION - 5 -