ECON 308: Managerial Economics/Strategy George Mason University Monday - Thursday: 10:30am 12:35pm Summer 2016, Enterprise 277 Professor: Miss Julia Norgaard Email: jnorgaar@gmu.edu Office Hours: Mondays and Wednesdays 12:40pm 2:00pm, Mason Hall First Floor D 167-2 (Economics Department) or by appointment Course Description: This course utilizes the tools of microeconomics to solve managerial decision problems. We use models of decision making to apply an objective lens to general decision-making in business areas. The goal of this course is to use analytical techniques and decisionmaking tools to analyze decision problems that business people and managers face. Principles of decision making will be introduced and applied to problems in the business world. Learning Objectives This course seeks to provide students with a framework of how economics can be used by businesses to compete and meet the needs of their customers more effectively. Students will develop their skills to apply game theory and microeconomics to solve business problems. They will use the tools of microeconomics to analyze the incentives internal to the firm and the market forces external to the firm. Each student should be able to apply and integrate relevant economic concepts to guide managerial decision making by the end of this course. Required Course Texts: Managerial Economics 8 th Edition o by: William F. Samuelson and Stephen G. Marks o ISBN-13: 978-1118808948 The Art of Strategy: A Game Theorist s Guide to Success in Business and Life o by: Avinash K. Dixit Moblab Account o You are required to register for a Moblab account to participate in the inclass games, you will receive an email from me inviting you to join our virtual class ($10 to join) *Both books are available on Amazon, I prefer that you obtain the 8 th edition of the Managerial Economics book because it will be much easier to follow the assigned chapters, however, you may get an older edition and match the chapters that we cover with the older edition.
Important Dates: First Day of Class: June 27 First Midterm Exam: July 7 (1 ½ hours) Second Midterm Exam: July 19 (1 ½ hours) Last Day of Class: July 27 Final Exam: July 28 (2 hours) (10:30am 12:35pm) Grading Distribution: First Midterm Exam: 20% of total grade Second Midterm Exam: 20% of total grade Final Exam: 30% of total grade In Class MobLab Games: 30% of total grade Attendance Policy: Attendance is not required for this class, however, it is highly recommended. Exam Policy: The exam dates are mandatory. If there is an emergency and you miss exam 1 and/or 2, that portion of the grade will be added to your final exam portion of your grade. You must attend the final exam. Each exam is cumulative; the study guides will provide you with a comprehensive summary of the material you will be held accountable for on the exams. I will hand out a study guide 2 days prior to each exam. These study guides will be available on Blackboard. I will also host a review session the day before each exam for an hour after class in the economics department. Come prepared to ask questions about the material. The exams will be curved as follows: The student with the highest grade will receive 100% on the exam and the delta between that student s original score and 100% will be added to each student in the class. For example, if the highest score on one of the exams is a 94%, 6% points will be added to each student s exam score. In Class MobLab Games Policy: We will be playing 10 sets of game theoretic games in class (worth 10 points each). You will receive a score for each game, depending on how well you performed during the game, the scores will not be curved. I will drop your lowest 2 scores. The in class games will be scored as follows: If you complete the game you are guaranteed 5/10 points. 6-10/10 points will be awarded according to your performance on each game. Class Schedule and Readings:
With regards to the chapters and readings that correspond to each day, I suggest that you read the material after the class that day. The gist of the material will be covered in class, however, there is information that will be on the exams that will not be specifically covered in class. The study guide will provide you with a comprehensive summary of the material you will be held accountable for on the exams. Week 1: June 27: Introduction to Economic Decision Making - Managerial Economics, Chapter 1: Introduction to Economic Decision Making - The Art of Strategy, Chapter 1: Ten Tales of Strategy June 28: Marginal Analysis - Introduction to Game Theory (Intro to Ch. 10) - Managerial Economics, Chapter 2: Optimal Decisions Using Marginal Analysis - The Art of Strategy, Chapter 2: Games Solvable by Backward Reasoning June 29: Demand Analysis and Forecasting and Optimal Pricing - Managerial Economics, Chapter 3: Demand Analysis and Optimal Pricing - Managerial Economics, Chapter 4: Estimating and Forecasting Demand June 30: Production - Managerial Economics, Chapter 5: Production - The Art of Strategy, Chapter 4: A Beautiful Equilibrium Week 2: July 4: (no classes) July 5: (no classes) - Receive study guide July 6: Game Theory - Review session after class for an hour (12:40pm 1:40pm) - Managerial Economics, Chapter 10: Game Theory and Competitive Strategy - The Art of Strategy, Chapter 5: Choice and Chance July 7: - Exam 1 (1 ½ hours) Week 3: July 11: Cost Analysis
- Managerial Economics, Chapter 6: Cost Analysis - The Art of Strategy, Chapter 3: Prisoners Dilemmas and How to Resolve Them July 12: Perfect Competition - Mid-semester Review (please return July 13) - Managerial Economics, Chapter 7: Perfect Competition July 13: Monopoly - Managerial Economics, Chapter 8: Monopoly - The Art of Strategy, Chapter 6: Strategic Moves July 14: Oligopoly - Receive study guide - Managerial Economics, Chapter 9: Oligopoly - The Art of Strategy, Chapter 7: Making Strategies Credible Week 4: July 18: Regulation, Public Goods, and Benefit-Cost Analysis - Review session after class for an hour (12:40pm 1:40pm) - Managerial Economics, Chapter 11: Regulation, Public Goods, and Benefit-Cost Analysis July 19: - Exam 1 (1 ½ hours) July 20: Decision Making Under Uncertainty - Managerial Economics, Chapter 12: Decision Making under Uncertainty - The Art of Strategy, Chapter 13: Incentives July 21: The Value of Information - Managerial Economics, Chapter 13: The Value of Information - The Art of Strategy, Chapter 8: Interpreting and Manipulating Information Week 5: July 25: Asymmetric Information and Organizational Design - Managerial Economics, Chapter 14: Asymmetric Information and Organizational Design - The Art of Strategy, Chapter 9: Cooperation and Coordination
July 26: Bargaining and Negotiation - Receive study guide - Managerial Economics, Chapter 15: Bargaining and Negotiation - The Art of Strategy, Chapter 11: Bargaining July 27: Auctions and Competitive Bidding - Review session after class for an hour (12:40pm 1:40pm) - Managerial Economics, Chapter 17: Auctions and Competitive Bidding - The Art of Strategy, Chapter 10: Auctions, Bidding, and Contests July 28: - Final Exam (2 hours) Course Policies: George Mason University Honor System and Code: George Mason University s Honor Code requires all community members to maintain the highest standards of academic honesty and integrity. Cheating, plagiarism, lying, and stealing are all prohibited. Honor Code violations will be reported to the Honor Committee. Plagiarism is not accepted (statements from Macon web site). http://mason.gmu.edu/montecin/plagiarism/htm#plagiarism The use of electronic devices is prohibited during an exam or a quiz; failure to comply with this will result in your failure of the assignment and potentially the failure of the class. Make sure to familiarize yourself with the GMU Honor Code, which is stated in the George Mason University Undergraduate Catalog GRADING SCALE Your grade will be curved at the end of the semester when all grades have been tabulated, this curve can only help you because I do not abide by any distribution quotas. A+ 98+ A 93-97 A- 90-92 B+ 88-89 B 83-87 B- 80-82 C+ 78-79 C 73-77 C- 70-72 D+ 68-69 D 60-67 F 0-59 Class Registration: Students must verify their summer class schedule and make sure they are officially registered for this class through Patriot Web. Students can exercise a selective withdrawal, see schedule of classes for selective withdrawal procedures. Last Day to Add/Drop (No tuition penalty): June 29, 2016 Last Day to Drop (50% tuition penalty): July 6, 2016
Accommodations for students with disabilities: Please contact myself the Office of Disability Resources at 703-993-2474 prior to the first exam. All accommodations are to be arranged ahead of time through the Office of Disability Resources. The professor does not have the power to provide accommodations to the students on their own.