22:223:601Economic Analysis of Management Decisions (3) Objectives of management are viewed in terms of optimization principles developed and applied in modern economic analysis. Emphasizes mastery of the techniques of macroeconomic analysis including important examples of their use. Surveys and applies elements of marginal analysis, linear and nonlinear programming, capital theory, input-output, utility, and risk analysis. Examines management problems in demand analysis, production, cost, and distribution, market structure and pricing, and capital budgeting. Independent study only. |
22:223:602Economics of Industry Regulation (3) Acquaints the potential executive or public administrator with the economic rationale and results of government regulation of industry. Examines the effects of regulation on quantity and quality of output, efficiency of production, optimal allocation of resources` distribution of income, and economic growth. Views current regulatory policies and practices in relation to the socioeconomic objective they purport to serve. Examples drawn from public utilities, transportation, financial institutions, natural gas and oil production, and marketing, as well as from environmental, worker, and consumer protection. Evaluates and discusses proposed reforms and revisions of regulatory policies. Independent study only. |
22:223:604Analysis and Forecasting of Business Conditions (3) Presents the basic analytical procedures followed by professional business forecasters, including a general familiarity with major government and industry economic data sources. Examines and evaluates basic forecasting techniques including time series analysis and econometric models, and judgmental forecasting. Examines these techniques in connection with forecasts of total economic activity, major components of GNP relevant to the firm, industry and sales forecasts for the individual firm. Prerequisites: 22:010:577 or 502, 22:223:581 or 521, 22:223:591 or 520, 22:373:592 or 531, 22:390:587 or 522, and 22:960:575 or 22:135:572. |
22:223:605Cost-Benefit Analysis (3) Reviews basic methodology for evaluating private projects and studies the more general framework of social cost-benefit analysis, used in the planning of highway projects, bridges, and water projects. Covers the social measurement of benefits and costs, the social rate of discount, externalities as benefits or costs, the value of time, the value of life, shadow prices, optimal scale, scheduling, and payment structures. Prerequisites: 22:010:577 or 502, 22:223:581 or 521, 22:223:591 or 520, 22:373:592 or 531, 22:390:587 or 522, 22:960:575 or 22: 135:572. Recommended prerequisite: 22:390:605. |
22:223:606Public Utility Regulation (3) Introduces the regulatory system of regulated utility companies or users of the goods and services provided by such regulated companies. Covers concepts of regulation, the regulatory process, the administrative process in utility regulation, elements of rate- making determination, rate-making procedures, and policy considerations. Independent study only. |
22:223:607R & D, Product Development, and the Product Life Cycle Management (3) Topics to be covered in this course include FDA`s drug approval process, different stages of tests of the drug, the costs and the associated risks, quantifying the financial value of R & D, impact of new drug for market power, the concept of drug portfolio, the role of private research firms, R & D project management, and other relevant topics. Prerequisites: All M.B.A. core courses. |
22:223:608International Trade and Macroeconomics (3) Extends the tools of macroeconomic policy analysis to incorporate the international sector. Particular attention is devoted to topics and issues such as the abolishment of the Gold Standard, the present fluctuations in exchange rates, central bank intervention policies including dirty floats, theories of international trade, tariffs and quotas, world currency markets including Eurodollars, and the effects of trade deficits and capital inflows. Material will be supplemented by discussions of current special topics such as the unification of Europe in 1992. Prerequisites: 22:010:577 or 502, 22:223:581 or 521, 22:223:591 or 520, 22:373:592 or 531, 22:390:587 or 522, and 22:960:575 or 22:135:572. |
22:223:640Special Topics: Modeling and Analyzing Competitive Bidding (3) Focuses on how to adapt game-theoretic and decision-theoretic models to provide bidders and also auction designers with practical advice. A number of open research questions identified. Principal sources are the original seminal publications and survey articles appearing in scholarly journals, as well as descriptive material on particular auction markets. Those who have not seen even the rudiments of game theory will face some extra reading early in the course. Independent study only. |
22:223:647Managerial Incentives and Motivation (3) Designed to apply the economic tools of analysis to the problems of incentives, delegation, and information to the profit-maximizing problem of the firm. Management fads come and go but each of these, and others, can be analyzed by how they overcome the coordination and decision-making problems of different firms in different environments. Incentives and empowerment must be applied together so that those who are making the decisions have the incentives to make decisions, which are best for the firm. Prerequisites: 22:010:577 or 502, 22:223:581 or 521, 22:223:591 or 520, 22:373:592 or 531, 22:390:587 or 522, and 22:960:575 or 22:135:572. |
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