Rose-Hulman Institute of Technology / Department of Humanities & Social Sciences / K. Christ

SV351, Managerial Economics

EMGT531, Economics for Technical Managers

Managerial economics is chiefly concerned with the application of economic tools of analysis to business management.  SV351 is a self and society elective, and is a requirement for the Management Studies Certificate.  SV151, Principles of Economics (or its equivalent) is a prerequisite.  The course also assumes a basic understanding of fundamental statistical concepts, as well as some familiarity with business and financial terminology.

Syllabus SV351 (Fall 2009)

Syllabus for EMGT531 (Fall 2009)

Schedule for Fall 2009

Date Lecture TTopics Readings
R, 9/3 1.1 Normal and "Abnormal" Profits Hirschey, chapter 1
F, 9/4 1.2 The Value Maximization Approach Hirschey, chapter 2
M, 9/7   IN-CLASS LAB1  
T, 9/8 1.3 Gleaning Information from Financial Statements Hirschey, chapter 11 (432 - 434)
R, 9/10 1.4 Understanding, Measuring and Assessing Risk Hirschey, chapter 16 (631 - 644)
F, 9/11 1.5 Dealing With Risk Hirschey, chapter 16 (644 - end)
M, 9/14   PROBLEM SET 1  
T, 9/15   EXAM 1  
R, 9/17 2.1 Demand and Supply Theory Hirschey, chapter 4 (134 - end); chapter 11 (413 - 417 and 422 - 431)
F, 9/18 2.2 Demand Estimation Hirschey, chapter 5
M, 9/21   IN-CLASS LAB 2 A helpful page for using MS Excel "Linest" function to do OLS Regression.
T, 9/22 2.3 Forecasting Basics Hirschey, chapter 6 (199 - 203, 210 - 217)
R, 9/24 2.4 Properties of Economic Time Series Hirschey, chapter 6 (203 - 209)
F, 9/25   Forecasting Topics Hirschey, chapter 6 (217 - end)
M, 9/28   PROBLEM SET 2 SOLUTIONS HERE  
T, 9/29   EXAM 2  
R, 10/1 3.1 Production and Cost Theory Hirschey, chapters 7 and 8
F, 10/2 3.2 Production and Cost Topics Hirschey, chapter 9
M, 10/5   IN-CLASS LAB 3  
T, 10/6   Additional Production and Cost Topics  
R, 10/8 3.3 Guest Lecture Hirschey, chapters 10 and 11
F, 10/9 3.4 Market Power Hirschey, chapters 12 (except 479 - 482) and chapter 13 (501 - 510)
M, 10/12   PROBLEM SET 3 SOLUTIONS HERE  
T, 10/13   EXAM 3  
M, 10/19 4.1 Oligopoly Models Hirschey, chapter 13 (510 - 524)
T, 10/20 4.2 Imperfect Competition and Public Policy Hirschey, chapter 12 (479 - 482) and chapter 13 (524 - end)
R, 10/22 4.3 Game Theory Basics Hirschey, chapter 14 (549 - 557)
F, 10/23   Strategic Interaction Hirschey, chapter 14 (557 - end)
M, 10/26 4.4 Pricing Hirschey, chapter 15
T, 10/27   Topics in Pricing  
R, 10/29   PROBLEM SET 4 SOLUTIONS HERE  
F, 10/30   EXAM 4  
M, 11/2 5.1 Capital Budgeting Hirschey, chapter 17 (671 - 682)
T, 11/3 5.2 Project Cash Flows and Cost of Capital Hirschey, chapter 17 (682 - end); Extra notes on cost of capital.
R, 11/5   IN-CLASS LAB 5  
F, 11/6   NO CLASS:  SCHEDULED TEAM MEETINGS  
M, 11/9 5.3 Governance Costs Hirschey, chapter 18 (713 - 720)
T, 11/10 5.4 Governance Structure Hirschey, chapter 18 (720 - end)
R, 11/12   PROBLEM SET 5 SOLUTIONS HERE  
F, 11/13   EXAM 5 / PAPERS DUE  

 

Data Sets (Fall 2009): Smyth Pies Baseball New Cars EDP Branded RHIT Pizza Gasoline Export
                 

 

Additional Resources:   Phil Rosenzweig, "The Halo Effect, and other Mangerial Delusions", The McKinsey Quarterly, 2007 Number 1, 77 - 85.
    Information on Porter's "Five Forces" framework.
    Buehler and Pritsch, "Running With Risk", The McKinsey Quarterly, 2003 Number 4, 40 - 49.
     
     
    Eugster, et al, "Bringing Discipline to Pricing", The McKinsey Quarterly, 2000 Number 1, 133 - 139.
     
    Jonathon Day, "The New Economics of Organization", The McKinsey Quarterly, 1998 Number 1, 4 - 18.
    Oliver Hart, "Corporate Governance:  Some Theory and Implications", The Economic Journal, Vol. 105, No. 430 (May 1995), pp. 678-689 (JSTOR).