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Winter 2004
This information effective for Winter 2004. Check with instructor the first day of class for any changes.
Economics
[ECON-101]
101. Managerial Economics
Note: This syllabus from Winter 2002; syllabus for Winter 2004 will be quite similar.
Instructor: Dan Friedman
Course Description:
A second course in microeconomics at the intermediate level, Economics 101 will emphasize interactions among firms and the internal organization of firms. The focus will be for-profit firms, but much of the material applies equally well to public sector and non-profit organizations.
The first part of the course analyzes how the competitive environment and market structure affect firms' behavior. The second part looks at strategic interactions among firms, using classical and modern oligopoly theory. The third part focuses on internal structure and on how firms and other organizations cope with problems of information and motivation.
The required text is Managerial Economics & Business Strategy, 3rd ed., by Michael R. Baye, (McGraw-Hill, 2000) ISBN # 0-07-228917-1, denoted Baye below. An optional, more advanced text is Economics, Organization and Management by Paul Milgrom and John Roberts (Prentice-Hall, 1992), ISBN # 0-13-224650-3, denoted MR below. Supplementary required readings include The Wall St. Journal, New York Times, The Economist or a comparable news source. Additional optional readings will be on reserve in the Science Library, available via ERES, and/or posted on the class website http://econ.ucsc.edu/~yothin/econ101.
Students will be evaluated on the basis of class participation and homework (up to 30 points), a 30-point take-home midterm, a 50-point in-class midterm, and a 100-point final exam. Class assignments will include some interactive games developed at UCSC.
Course
prerequisites are Econ 100A and Econ 113. The opening lectures assume
that you are familiar with concepts covered in Econ 1 and Econ 100A. If
you feel rusty on this material, you may want to review Baye, chapters
2-5.
The class meets Tu Th 10-11:45 in 327 Kresge. Office hours are W 2-4 p.m.
and by appointment, in SSI 212. The Teaching Assistant is Yothin Jinjarak,
e-mail: yothin@cats.ucsc.edu. His office hours are Tu 2-3pm in SSI 213.
Tentative
Schedule
| Week, dates | Topics | Readings |
| 1. Jan 3, 8, 10 | Overview, firms & environments | Baye Ch 1,7. |
| 2. Jan 15, 17* | Competition and monopoly | Baye Ch 8; MR Ch 3. |
| 3. Jan 22, 24 | Oligopoly models | Baye Ch 9. |
| 4. Jan 29, 31* | Market power and pricing | Baye Ch 11. |
| 5. Feb 5, 7 | Internal organization & transaction costs | Baye Ch 6; MR Ch 1,2. |
| 6. Feb 14** | Midterm in class | |
| 7. Feb 19, 21 | Coordination and motivation problems | Baye Ch 12; MR Ch 4,5,6. |
| 8. Feb 26, 28* | Decision theory and applications | MR Ch 7. |
| 9. Mar 5, 7** | Game theory and applications | Baye Ch 10. |
| 10. Mar 12, 14 | Optional topic, and review | TBA |
*
indicates homework due date, ** indicates midterm exam date
Final Exam in class, 4-7p.m. Monday, March 18.