Rose-Hulman Institute of Technology / Department of Humanities & Social Sciences / K. Christ SV351, Managerial Economics EMGT531, Economics for Technical Managers

SV351, 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.  Click here for the Fall 2011 syllabus.

EMGT531, Economics for Technical Managers is the graduate version of the course.  Click here for the Fall 2011 syllabus.

Schedule for Fall 2011

 Date Lecture TTopics Readings R, 9/1 1.1 Economic, normal and "abnormal" profits Hirschey, chapters 1 (3 - 5, 9 - 13, 16 - end) and 2 F, 9/2 1.2 Value maximization Hirschey, chapter 2, including appendices M, 9/5 1.3 Analysis of market situations T, 9/6 1.4 Interpretation of accounting information Hirschey, chapter 11 (432 - 434) R, 9/8 IN-CLASS LAB 1:  Rates of Return F, 9/9 1.5 Production theory Hirschey, chapter 7 M, 9/12 1.6 Production topics and cost theory Hirschey, chapter 8 T, 9/13 PROBLEM SET 1 R, 9/15 EXAM 1 F, 9/16 2.1 Demand and supply review Hirschey, chapter 3 M, 9/19 2.2 Elasticity Hirschey, chapter 4 (134 - end). and 11 (413 - 417) T, 9/20 2.3 Demand estimation Hirschey, chapter 5 R, 9/22 2.4 Interpretation of OLS results Hirschey, chapter 5 A helpful page for using MS Excel "Linest" function to do OLS Regression. F, 9/23 2.5 Review of Exam 1 concepts (CONVO) Hirschey, chapter 6 (199 - 202, 210 - 216, 225 - end) How to Estimate Price Elasticity of Demand for Gasoline - EViews Output and Link M, 9/26 2.6 Business Forecasting / Time series econometrics Hireschey, chapter 6 (203 - 209, 217 - 225) T, 9/27 IN-CLASS LAB 2:  Forecasting R, 9/29 PROBLEM SET 2 F, 9/30 EXAM 2 M, 10/3 3.1 Market structure Hirschey, chapters 10, 11, and 13 (525 - 535) T, 10/4 3.2 Imperfectly competitive markets Hirschey, chapters 12 (457 - 479) and 13 (501 - 524) R, 10/6 3.3 Market structure and public policy Hirschey, chapter 12 (479 - 485) F, 10/7 3.4 Introduction to game theory Hirschey, chapter 14 (549 - 561) M, 10/10 3.5 (No notes) Game theory applications and strategy Hirschey, chapter 14 (563 - end) T, 10/11 PROBLEM SET 3 M, 10/17 3.6 Pricing with market power Hirschey, chapter 15 T, 10/18 IN-CLASS LAB 3: "Bringing Discipline to Pricing" R, 10/20 EXAM 3 F, 10/21 4.1 Risk Hirschey, chapter 16 (631 - 644) "Running With Risk" M, 10/24 4.2 Dealing with risk Hirschey, chapter 16 (644 - end) T, 10/25 4.3 Capital budgeting Hirschey, chapter 17 (671 - 687, 693 - end) R, 10/27 4.4 Cost of capital Hirschey, chapters 16 (644 - 650) and 17 (687 - 693) F, 10/28 IN-CLASS LAB 4:  Capital Budgeting Capital Budgeting Spreadsheet Template M, 10/31 4.5 Corporate governance Hirschey, chapter 18 T, 11/1 4.6 The regulatory environment Hirschey, chapter 19 R, 11/3 PROBLEM SET 4 F, 11/4 EXAM 4 M, 11/7 PEER REVIEW OF TEAM PAPERS T, 11/8 TEAM PRESENTATIONS R, 11/10 TEAM PRESENTATIONS F, 11/11 TEAM PRESENTATIONS

 Data Sets (Fall 2009): Smyth Pies Baseball New Cars EDP Lab2 Fcst1 RHIT Pizza Gasoline Export

 Additional Resources: Buehler and Pritsch, "Running With Risk", The McKinsey Quarterly, 2003 Number 4, 40 - 49. Ronald Coase, "The Nature of the Firm", Economica 4 (1937), 386 - 405 (JSTOR). Jonathon Day, "The New Economics of Organization", The McKinsey Quarterly, 1998 Number 1, 4 - 18. Milton Friedman, "The Social Responsibility of Business is to Increase its Profits", New York Times Magazing, September 13, 1970. Eugster, et al, "Bringing Discipline to Pricing", The McKinsey Quarterly, 2000 Number 1, 133 - 139. Information on Porter's "Five Forces" framework. Phil Rosenzweig, "The Halo Effect, and other Mangerial Delusions", The McKinsey Quarterly, 2007 Number 1, 77 - 85. Oliver Hart, "Corporate Governance:  Some Theory and Implications", The Economic Journal, Vol. 105, No. 430 (May 1995), pp. 678-689 (JSTOR).