Course Descriptions
ECONOMICS (ECON)
Professors: Mario L. Belotti, William F. Donnelly, S.J., Alexander J. Field, John M. Heineke, Kris J. Mitchener,William A. Sundstrom
Associate Professors: Carolyn L. Evans, Linda Kamas, Michael Kevane, Helen Popper (Chair), Dongsoo Shin
Assistant Professors: John Ifcher, Arunima Sinha
Acting Assistant Professor: Goncalo Pina
W. M. Keck Foundation Professor: Mario L. Belotti
Michel and Mary Orradre Professor: Alexander J. Field
Robert and Susan Finocchio Professor: Kris Mitchner
Note: The following courses are required of all MBA students. Please see Waiver Rules in the MBA Curriculum pages.
ECON 401. Economics for Business Decisions (Managerial Economics)
Introduces the use of microeconomics in making better business decisions. Includes topics on determinants of demand, role of demand elasticities in an optimizing firm, identification of costs which are relevant to business decisions, estimation and forecasting demand and costs using regression analysis, differences between various market structures and consequences for business decisions, and optimal pricing in segmented and non-segmented markets. Integral part of the course is the use of current business articles to integrate and illustrate topics. Emphasizes applications of microeconomic theory. Prerequisite: OMIS 353. Must be completed within the student’s first three quarters of residence. (3 units)
ECON 405. Macroeconomic Theory and Policy
Study of what determines the level and rate of growth of output, income, employment and prices, and the level of interest and foreign exchange rates. Prepares decision-makers to understand how an economy functions in the aggregate and to help them interpret, analyze, and operate within a changing macroeconomic environment. Prerequisite: OMIS 353. (3 units)
Note: The following courses are offered as electives and/or as part of a concentration.
ECON 422. Topics in Profit Maximizing Pricing
Company strategies to approximate the profit maximizing price of microeconomic theory using only information that is readily available to the company. Topics include: costs relevant for pricing decision; financial analysis for determining change in sales needed to make price changes profitable; analysis of customers and customer price sensitivity; pricing in segmented markets; anticipating and influencing competitor pricing decisions; competitive advantages and disadvantages in profit focused pricing decisions. Topics are integrated to provide real-world path to profit maximizing pricing. Class run as a seminar with student interaction and student research projects. Cross-listed as MKTG 588. Prerequisites: ECON 401, MKTG 551, differential calculus, and a working knowledge of hypothesis testing and regression analysis. (3 units)
ECON 424. Economics of Decision Making Under Uncertainty
Examines managerial decision-making from the behavioral point of view. Identifies the normatively “correct” decision in a number of specific decision problems; compares with the actual decisions most managers make. Discusses actual decisions and the nature and frequency of biases, as well as techniques for eliminating bias to improve decision-making. Prerequisite: ECON 401. (3 units)
ECON 430. Game Theory and Strategic Behavior
Studies theoretical concepts and tools for analyzing issues in the business environment such as conflict, bargaining, pretending and shirking in organizations and markets, agenda construction, and strategic commitment. Teaches game theoretical topics such as Nash-equilibrium, Sub game perfection, Bayesian Nash-equilibrium, Harsanyi transformation, commitment, and Perfect Bayesian Equilibrium. Prerequisites: ECON 401 and working knowledge of calculus. (3 units)
ECON 432. International Trade
Applies principles and techniques to patterns of foreign trade, foreign investment and the national economy, international agreements and institutions, and environmental and social effects of trade. Covers theory of comparative advantage, distributional issues relating to trade, political economy of trade protection and trade agreements, and empirical issues in applied trade analysis. Features lectures, discussions, and short papers on current policy issues. Prerequisites: ECON 401 and ECON 405. (3 units)
ECON 434. Money and the Economy
Examines the financial system as a whole. Considers the basic determinants of supply and demand for loanable funds, the manner in which funds are exchanged in the money and capital markets, the influence of demand and supply factors on interest rates, the impact of changes in interest rates, money supply, and loanable funds on the level of economic activity. Prerequisite: ECON 405. (3 units)
ECON 466. International Monetary and Financial Relations
Thoroughly examines the international monetary system and international financial arrangements with emphasis on policy toward exchange rates and balance of payments crises in emerging markets. Studies foreign exchange markets, balance of payments, international liquidity, central bank policy and international regulatory institutions, and macroeconomic modeling. Prerequisite: ECON 405. (3 units)
ECON 696. Experimental Course
Covers special topics; offered on an occasional basis. (3 units)
ECON 852. Managerial Economics for Business Decisions
Explores microeconomic theories used for managerial decisions. Discusses the economic behavior of individuals and firms to understand how their interactions in markets impact managerial decisions. Discusses concepts of market, price elasticity, theory of consumer choice, and both intra-firm and inter-firm strategic interactions using various analytical tools. Open to AMBA program students only. (3 units)
ECON 857. Macroeconomics
Studies determinants of the level and rate of growth of economic output, income, employment and prices, and the level of interest and foreign exchange rates. Prepares decision-makers to understand how an economy functions in the aggregate, and to help them interpret, analyze, and operate within a changing macroeconomic environment. Open to AMBA program students only. (3 units)
