Economics for Decision Making: On-site Syllabus



Economics for Decision Making 2 CreditsBU.220.620.XX[NOTE: Each section must have a separate syllabus.][Day & Time / ex: Monday, 6pm-9pm][Start & End Dates / ex: 8/20/18–10/15/18][Semester / ex: Fall 2018][Location / ex: Washington, DC]Instructor[Full Name]Contact Information[Email Address][Phone Number, ###- ###-#### (Optional)]Office Hours[Specify the day and time of the 2 hours that will be dedicated to office hours each week. For evening classes, faculty may wish to hold their office hours by phone or email. While faculty are permitted to state “and by appointment,” office hours should not be held exclusively by appointment.]Required Texts & Learning MaterialsInstructor’s lecture slides (to be posted on Blackboard; required)Textbook (required): Pindyck, R. S., & Rubinfeld, D. L. (2018). Microeconomics (9th ed.). Harlow, England: Pearson. Study Guide is optional.Additional readings and materials will be posted on Blackboard; the instructor will specify which of these materials will be required.Course DescriptionThis is a microeconomics course with emphasis on the application of economic principles and methodologies to private and managerial decision problems. Major topics include consumer choice and market demand, costs and profit maximization, market structures, output/price decisions, and strategic interactions.Prerequisite(s)BU.510.601 OR BU.914.610 Learning ObjectivesBy the end of this course, students will be able to: Understand the determinants and characteristics of consumer-level and market-level demand, and of firm-level and market-level supply.Understand the concepts of perfect competition and market equilibrium.Use tools from microeconomics to understand and predict the short-run and long-run effects of demand and supply shocks on the market equilibrium (price, quantity, number of firms operating in the industry, profits, consumer surplus, and overall welfare).Adapt managerial strategies to different industry and informational structures, and strategic scenarios.Use tools from microeconomics to understand and predict the effects of government regulations on business and general welfare.Recognize the implications of alternative pricing schemes for firm profits, consumer surplus, and overall welfare.To view the complete list of the Carey Business School’s general learning goals and objectives, visit the Carey website.Attendance Students are responsible for all topics and concepts specifically covered during the class sessions. Therefore, students should make every effort to attend all scheduled class sessions. You should be aware that failure to attend class might impact your ability to achieve the objectives of the course. Absence from class will also affect your participation score. When you miss a class session, you are responsible for obtaining class handouts and information given out during your absence. Even if you miss class, you must turn in your assignments on time unless otherwise previously arranged with the instructor. Students are expected to arrive to class on time and stay for the full duration of the lecture. While in class, students should turn off their cell phones and be sure that all computer use is course-related.Assignments & RubricAssignmentLearning ObjectivesWeight3 Homework Assignments1–66% each (18% total)2 Quizzes1–615% each (30% total)1 Final Exam1–642%Participation1–610%Total100%ParticipationStudents will receive points according to their attendance and class participation in each lecture: 0 points for no attendance; 1 point for attendance and no class participation; and 2 points for class participation that fosters discussion and understanding of other students.Homework AssignmentsStudents will be given three homework assignments. The assignments will be handed out in class in Weeks 1, 4, and 6, and they will be due at the beginning of class in Weeks 2, 5, and 7, respectively. Students may work in teams on the assignments. There is no minimum team size (i.e., you can work individually if you prefer), but the maximum team size is 3 (three). Each team will submit one answer, and each team member will receive the same score. The names of the team members must be clearly indicated on the front page of the assignment. Individual members of each team are expected to completely understand and agree with the answers submitted. If you fail to submit an assignment by the deadline, you will receive zero points.In-Class QuizzesStudents will be given two in-class quizzes, in Weeks 3 and 6. Each quiz will be 30 minutes long, and it will cover all the material covered in class in the previous weeks. The tests will be a blend of multiple-choice and short answer questions. The format will be closed-book, closed-notes. At the discretion of the instructor, you may bring a one-page, double-sided “formula sheet,” but no other items may be used. You may use a handheld calculator (provided by the Instructor). A maximum of one quiz can be missed. If a quiz is missed, its weight (15%) will be put on the final exam. Note: A quiz may not be “missed” once it is taken. In-Class Final ExamThere will be an in-class 3-hour final exam. The exam is cumulative, in that it will cover all topics covered in class in the course. The exam will be a blend of multiple-choice, short-answer questions, and longer problems. The format will be closed book, closed-notes. At the discretion of the instructor, you may bring a one-page, double-sided formula sheet, but no other items may be used. You may use a hand-held calculator (provided by the Instructor). A make-up exam will be given only in case of valid and documented excuses. See the class schedule below for important dates and deadlines.The rubric below explains how the homework assignments, quizzes, and final exam will be assessed.AssessmentCriteriaNot Good Enough(0≤ score <6)Good(6≤ score <9)Very Good(9≤ score ≤10)ScoreKnowledge of thetheoretical conceptsMisunderstands some of the theoretical conceptsMisrepresents the theoretical constructsSome of the concepts or frameworks necessary for the specific application are not mentionedDemonstrates understanding of the theoryCorrectly explains the theoretical constructs/frameworks used in the analysisMentions all the necessary theoretical tools for the specific applicationExcellent understanding of theoretical concepts and frameworksProvides excellent representation of the theory and additional explanationsMakes use of all the necessary concepts for the specific application40Application of theory to specific context/situationUses theoretical tools that do not fit the specific application/situationAnalysis is sometimes incoherent and/or does not follow a logical flow(if quantitative) Errors in computation or set-up of the quantitative partIdentifies the correct theoretical tools, concepts and frameworks to be used in the applicationProvides coherent and logical analysis of the application through the lens of the theory(if quantitative) The quantitative part is executed correctly, there are no errors of computationIdentifies the correct theoretical tools, concepts and frameworks to be used in the application, but provides additional concepts that could be useful in analysisProvides an outstanding analysis of the application using theory, examples and thorough explanations(if quantitative) The quantitative part is perfectly executed40Quality of explanation and discussion The discussion and explanation are not very clearDoes not use proper logic and terminology is inappropriate or incorrectSteps followed to reach the conclusion are not clearly indicatedThe logic of the discussion and explanation is clear Appropriate terminology; clear writingThe discussion and explanation are logical and provides all the necessary information to the reader Uses proper terminology and writing is excellent20Total Score100GradingThe grade of A is reserved for those who demonstrate extraordinarily excellent performance as determined by the instructor. The grade of A- is awarded only for excellent performance. The grades of B+, B, and B- are awarded for good performance. The grades of C+, C, and C- are awarded for adequate but substandard performance.?The grades of D+, D, and D- are not awarded at the graduate level (undergraduate only). The grade of F indicates the student’s failure to satisfactorily complete the course work.Please note that for Core and Foundation courses, a maximum of 25% of students may be awarded an A or A-; the grade point average of the class should not exceed 3.3. For Elective courses, a maximum of 35% of students may be awarded an A or A-; the grade point average of the class should not exceed 3.4. (For classes with 15 students or fewer, the class GPA cap is waived.)List of Course TopicsIndividual and Market DemandDecision making on the marginConsumer surplus Demand determinantsElasticity (calculation and determinants, own-price, cross-price, income elasticity)Demand estimationRevenue maximizationCosts and Profit MaximizationCost concepts (opportunity cost, sunk cost; total cost, fixed cost, variable cost, average cost, marginal cost)Relationship between cost curvesProfit maximization for a firm facing a downward sloping demand curveDifference between short-run (operating horizon) and long-run (investment/planning horizon)Economies of scale; economies of scopeCompetitive Supply and Market AnalysisPerfect competitionFirm's demand under perfect competitionProfit maximization of price takersShort-run and long-run supply curvesMarket equilibrium in the short run and the long run; market dynamicsEfficiency of competitive marketsTax incidence analysisDecision Making Under UncertaintyIndividual choice and attitudes toward riskAsymmetric information, adverse selection, and moral hazardMarket equilibrium with riskStrategy and Game TheoryBasics of Game TheoryNash equilibriumSimultaneous games and sequential gamesPrisoner’s dilemmaCoordination gamesRepeated interactionsCommitment, credible threats and promisesPricing with Market PowerFirst Degree Price DiscriminationSecond Degree Price Discrimination (block pricing, two-part tariffs)Third Degree Price Discrimination (market segmentation)Special Topics: The instructor may choose to cover one or two additional topics (conditional on time availability and other considerations). Possible topics include: externalities, price controls, models of oligopoly (Bertrand, Cournot, Stackelberg), auctions, tariffs and import quotas, antitrust, screening and signaling, other topic.Tentative Course CalendarInstructors reserve the right to alter course content and/or adjust the pace to accommodate class progress. Students are responsible for keeping up with all adjustments to the course calendar.The table below describes what content will be covered each week, what students should be reading, and whether any assignments are due or tests scheduled on each week. More details about the topics covered are reported in the previous section. The instructor will provide further details regarding what parts of each chapter are required. PR = Pindyck-Rubinfeld textbook (9th ed.).WeekDateTopicReadingsDue1Preliminaries Individual and Market DemandHomework 1 handed outLecture Slides; PR Ch. 1.Lecture Slides; PR Ch. 2, Ch. 42Individual and Market Demand (continued)Lecture Slides; PR Ch. 2, Ch. 4Homework 1 Due3Costs and Profit MaximizationLecture Slides; PR Ch. 7, Ch. 8In-Class Quiz 14Competitive Supply and Market AnalysisHomework 2 handed outLecture Slides; PR Ch. 2, Ch. 95Decision Making Under UncertaintyLecture Slides; PR Ch. 5, Ch. 17Homework 2 Due6Strategy and Game TheoryHomework 3 handed outLecture Slides; PR Ch. 12, Ch. 13In-Class Quiz 27Pricing with Market PowerLecture Slides; PR Ch. 10, Ch. 11Homework 3 Due8Final ExamCarey Business School Policies and General InformationBlackboard SiteA Blackboard course site is set up for this course. Each student is expected to check the site throughout the semester as Blackboard will be the primary venue for outside classroom communications between the instructors and the students. Students can access the course site at . Support for Blackboard is available at 1-866-669-6138.Disability Support ServicesAll students with disabilities who require accommodations for this course should contact Disability Support Services at their earliest convenience to discuss their specific needs. If you have a documented disability, you must be registered with Disability Support Services (carey.disability@jhu.edu or 410-234-9243) to receive accommodations. For more information, please visit the Disability Support Services webpage.Academic Ethics PolicyCarey expects graduates to be innovative business leaders and exemplary global citizens. The Carey community believes that honesty, integrity, and community responsibility are qualities inherent in an exemplary citizen. The objective of the Academic Ethics Policy (AEP) is to create an environment of trust and respect among all members of the Carey academic community and hold Carey students accountable to the highest standards of academic integrity and excellence.It is the responsibility of every Carey student, faculty member, and staff member to familiarize themselves with the AEP and its procedures. Failure to become acquainted with this information will not excuse any student, faculty, or staff from the responsibility to abide by the AEP. Please contact the Student Services office if you have any questions. For the full policy, please visit the Academic Ethics Policy webpage.Student Conduct CodeThe fundamental purpose of the Johns Hopkins University’s regulation of student conduct is to promote and to protect the health, safety, welfare, property, and rights of all members of the University community as well as to promote the orderly operation of the University and to safeguard its property and facilities. As members of the University community, students accept certain responsibilities which support the educational mission and create an environment in which all students are afforded the same opportunity to succeed academically. Please contact the Student Services office if you have any questions. For the full policy, please visit the Student Conduct Code webpage.Student Success CenterThe Student Success Center offers free online and in-person one-on-one and group coaching in writing, presenting, and quantitative courses. For more information on these services and others, or to book an appointment, please visit the Student Success Center website.Other Important Policies and ServicesStudents are encouraged to consult the Student Handbook and Academic Catalog and Student Services and Resources for information regarding other policies and services.Copyright StatementUnless explicitly allowed by the instructor, course materials, class discussions, and examinations are created for and expected to be used by class participants only.?The recording and rebroadcasting of such material, by any means, is forbidden. Violations are subject to sanctions under the Academic Ethics Policy. ................
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