Business Economics – emlyon

This course gives participations a coherent view of core economic concepts from the perspective of managers and policymakers. We will look at the principles of microeconomics that are relevant for managerial decisions, including value creation, supply decisions, and the use of markets to allocate scarce resources. Particular techniques involving the interpretation of market data will be explored to provide a useful, practical toolkit.

The course also exposes participations to some of the key frameworks and models in macroeconomic theory, and provides a policy-oriented decision-making context. Newspapers and social media are full of macroeconomic commentary, but many people can feel intimidated by the terms being used and the thinking behind them. Participants will not only understand why certain decisions were made, but formulate their own views on the arguments in favour and against. In doing so, participations will be obliged to think big about the macro policy environment.

Finally, economics is focused on human action and therefore we will look at some key findings from the behavioural economics literature and how they relate to corporate decision making.

Simple, intuitive models applied to stylized managerial examples are studied along with classroom exercises in order to enhance understanding of complex real-world issues. The topics you will learn in this course are essential to formulating management, marketing, and other related business decisions and strategies.


Course textbook:

Course handouts: download here (TBC)

Assessment instructions: download here (TBC)


Pre class activities
All cases need to be read and prepared in advance.
Day 1: Micro
1. Value creation* (+)

2. Cost curves* (+)

    • Evans, A.J., “La Marmotte”, January 2012
    • Instructions: Complete Exhibit 1 and provide suggestions for the two key decisions
    • Textbook: Chapter 2.2

3. Auctions (+)

    • Hild, M., Dwidevy, A., and Raj, A., 2004, “The Biggest Auction Ever: 3G Licensing in Western Europe”, Darden Business Publishing (£)
    • Discussion question: What are the alternatives to auctions?
    • Textbook: Chapter 3.3

4. Applications

Extra activity: The Dutch flower auction

Day 2: Macro: closed economy
5&6. Monetary policy (+)

    • “The Euro in Crisis: Decision Time at the European Central Bank” Harvard Business School case no. 9-711-049 (£)
    • The ECB During the Crisis, July 2021
    • Textbook reference: Chapter 8

7&8. Fiscal policy (+)

After class you should watch this video and pass this quiz.

Day 3: Macro: wider issues
9. Macro Policy Workshop (+)

10. International economics (+)

11. Behavioural Economics (+)

    • “Sun: A CEO’s Last Stand”, Business Week, July 26th 2004 (£)
    • Textbook reading: Chapter 11

12. Behavioural Economics (contd.)

Note:

Cases marked with a pound sign (£) are either available via Canvas.

Macro Models

Lecture handout: Macro Models: from DICE to doughnuts

This lecture integrates ecological concerns wirth standard economics, providing an overview of how macroeconomists model the economy and how those methods and models relate to climate issues.

Here’s a short quiz to test your knowledge about the sessions:

https://forms.gle/7gS6wzAuUxirvKJ57

And here are the scorecards on social progress mentioned:


Recommended readings:

You can play with the Schelling model here. To learn more about ABMs I recommend this Runestone Academy interactive textbook.

 

Further readings:
Recommended audio:
  • Macro 6: DSGE“, Anthony J. Evans (for more depth on Macroeconomic models including my other podcast episodes see here)
Recommended videos:

Here is a fascinating video (in French) on the limits to growth and the World 3 model

Here is more on the doughnut model:

Some spinning donuts (see! it is meant to be measured!):

 

Markets: the first AI

Download the reading pack:

https://www.dropbox.com/s/m7tmkg8yogsc5vc/Markets.pdf?dl=1

 

Economics – IFBM


Course textbook:

Course handouts: download here.

Assessment instructions: download here.


Course schedule

Pre-course activity
Watch this video: https://youtu.be/HAuGP5vJbDI
Session 1 (online)
1. Value creation* +

Textbook reading: Chapter 1

Session 2
2a. Cost curves* +

Evans, A.J., “La Marmotte”, January 2012

Instructions: Complete Exhibit 1 and provide suggestions for the two key decisions

2b. Auctions +

Hild, M., Dwidevy, A., and Raj, A., 2004, “The Biggest Auction Ever: 3G Licensing in Western Europe”, Darden Business Publishing (£)

Discussion question: What are the alternatives to auctions?

Extra activity: The Dutch flower auction

Textbook reading: Chapter 2 and Chapter 3

Session 3
3a. Equilibrium assignment

3b. Adverse selection +

Session 4
4a. Read through the following Twitter thread: https://twitter.com/anthonyjevans/status/993918866186297349

Choose one of the tweets and use it as the basis to apply some microeconomic theory. Make assumptions and perform calculations where necessary.

4b. Price discrimination – Debrief* +

Textbook reading: Chapter 4

Session 5: Online
5. Group presentations

Note: Sessions marked with an asterix (*) have a lecture handout available in advance, which can be downloaded. Cases marked with a pound sign (£) are available via Blackboard. Follow the + links for additional resources.

Progress

Lecture handout: Progress*
Activity: Transformative Breakthrough Worksheet

Key readings:

Other readings:

Key podcast:

Here’s a concerning thought: “Half of all scientific papers were published in the last 12 years, but much less than half of all scientific progress has happened in that time” (link).

For a survey of potential breakthrough technologies see:

  • Weinersmith, K., and Weiner, Z., 2017, Soonish, Penguin

In December 2020 Tyler Cowen provided a list of new technologies that may mark the end of the great stagnation. He included:

In February 2022 MIT Technology Review listed their 10 biggest technology breakthroughs in 2022. They are:

  1. Moving away from passwords
  2. Coronavirus variant tracking
  3. A long-lasting grid battery
  4. Artificial intelligence for protein folding
  5. GlaxoSmithKline’s malaria vaccine
  6. Proof of stake
  7. COVID-19 antiviral pills
  8. Practical fusion reactors
  9. Synthetic data for training AI
  10. The world’s largest carbon removal factory in Iceland

Here is a podcast with Eli Dourado:

Some of my favourite “no brainer” growth drivers include:

I suspect that future growth requires a cultural shift toward the principle of progress, and this involves a shift to longer term thinking. This post by Max Roser nicely presents the importance of “Longtermism”.

Here is a powerful and fascinating account of why advances in artificial wombs are so important, and I encourage all students to read it and reflect carefully on whether we should:

  • Alter the 14 day rule on keeping embryos in labs.
  • Invest more in Femtech.

For more on Permissionless Innovation:

A good, uplifting account of how creativity can result from not asking permission:

Here is a short quiz activity on the difference between the Precautionary principles and Permissionless innovation.

The importance of ideas:

Key think tanks:

Key movements:

Learning Objectives: Link technological innovation to growth theory and a broader reflection on the importance of the humanities

Cutting edge theory: A survey of potentially transformative breakthrough technologies.

Focus on diversity: Virginia Postrel’s book, The Future and it’s Enemies, encapsulates the distinctions made at the end of the lecture. 

Public lectures

I have given public lectures at Oxford University, the University of Manchester and a range of economic think tanks.

“An Introduction to the Austrian School of Economics”, Institute for Economic Affairs (August 2012)

We Had it Coming – An Introduction to Austrian Economics” University of Manchester (March 2012)

“The second revival in Austrian Economics: why the future of good economics is Austrian” Oxford Libertarian Society, Christ Church Oxford (February 2011)

Contemporary work in Austrian Economics” Adam Smith Institute, St Stephen’s Club, London (September 2010) [event detailsaudio here]

“Globalisation after the Crash” Institute of Economic Affairs, London (June 30th 2009) – panellist

Keynote speeches

“Outlook: Which ways to better regulation?” Better Regulation conference, Geneva (September 2018)

The Role of Competitiveness in Emerging Europe” Future proofing the Economy Forum, Zagreb (February 2017) [video highlights]

Sound Money: An Austrian proposal for free banking, NGDP targets, and OMO reforms” Adam Smith Institute, London (February 2016)

How to think like an economist” Adam Smith Institute, London (April 2015)

Austrian Economics for Start Ups: What Do Entrepreneurs Need to Know?” CADI, Bucharest (May 2015)

“Why whistleblowing protection fails and what to do about it” Lucas Graduate School of Business, San Jose State University (October 2011)

“Whistleblowing and the knowledge problem”, College of Business, San Jose State University (September 2011)

“Why Market Monopolies are OK”, Civil Society Institute, Santa Clara University (September 2011)

“The problem with shock therapy is not enough volts: Why Russia needs more powerful oligarchs” David S. Saurman Provocative Lecture Series, San Jose State University (September 2011)

Workshop presentations

I have been invited to present my working papers at institutions including City University, the Cambridge Society for Economic Pluralism, and George Mason University.

Getting the Measure of Money” University of Buckingham (March 2019)

“Choose your own financial crisis” University of Buckingham (January 2017)

Choose your own financial crisis. A methodological defence of second person counterfactual scenarios”, Prague Conference on Political Economy, Prague (April 2016) – not presented

Choose your own financial crisis“, PPE Workshop, George Mason University (September 2015)

Individualism, subjectivism and time: An introduction to the theoretical foundations of the Austrian school“, Cambridge Society for Economic Pluralism (November 2014)

“The (Quantity) Theory of Money and Credit: Monetarism and von Mises” City University Economics Department Seminar, (November 2012)

The Financial Crisis in the U.K.:  Uncertainty, Calculation, and Error ” CADI, Bucharest (June 2012)

“Establishing the Facts about Austerity” ESCP Europe Research Retreat (August 2012)

“The role of ignorance in economic crises: The UK experience during the great recession” Cal State East Bay (November 2011)

The Financial Crisis in the U.K.:  Uncertainty, Calculation, and Error”, Department of Economics Friday Workshop, San Jose State University (October 2011)

A research agenda for applying Cultural Theory to corporate organizations” Leuven, Belgium (January 2011)

“Liquidity in the age of independence” ESCP-EAP Research Olympics, London (November 2008)

“Towards a Constitutional Theory of the Firm” ESCP-EAP Research Olympics, London (November 2008)

“In Defence of Rational Ignorance: A Subjectivist’s Solution to Public Choice Excess” Foundation for Economic Education, New York (September 2008)

“Comparative Methodology and the Diffusion of Ideas” Anglia Ruskin University, Cambridge (October 2007)

“Towards a Corporate Cultural Theory II” Workshop on Cultural Theory and Management: A Conference held in memory of Prof. Dame Mary Douglas, ESCP-EAP London (July 2007)

“Towards a Corporate Cultural Theory” Conference on Austrian Market-based Approaches to the Theory and Operation of a Business Firm, George Mason Law School (May 2007)

Conference presentations

I have presented at academic conferences such as the European Academy of Management, the Southern Economic Association, and the Association of Private Enterprise Education.

“New authoritarianism and the relevance of public choice. The case of Belarus”, Midwest Political Science Association, Chicago (April 2022) – attended virtually

The Natural Rate of Interest: Estimates for the UKEastern Economic Association, New York (March 2019)

“A strategic plan for the East Belarus mechanical engineering cluster” Association for the Study of Nationalities, Columbia University, New York (May 2018) – not presented

“Ranking Belarus on Competitiveness and Economic Freedom” Association of Private Enterprise Education (APEE), Las Vegas (April 2018)

Economic insights on capitalism, sanctions, and embezzlement: why privatisation matters” Association for the Study of Nationalities, Columbia University, New York (May 2017) – discussant

Choose your own financial crisis” Chartered Association of Business Schools, Bristol (April 2017) – poster

The Microfoundations of Austrian Economics Through a New Classical Theoretical Lens” Mont Pelerin Society, Miami (September 2016)

The Hidden Inflation of the Great Moderation”, Association of Private Enterprise Education (APEE), Cancun (April 2015)

“Reflections on John Blundell” Association of Private Enterprise Education (APEE), Cancun (April 2015)

The Goldilocks Measure of UK Monetary Aggregates: An Introduction to MA“, Southern Economic Association, Atlanta (November 2014)

An Estimate of Gross Domestic Expenditure (GDE) for the UK“, Association of Private Enterprise Education (APEE), Las Vegas (March 2014)

“The (Quantity) Theory of Money and Credit”, Association of Private Enterprise Education (APEE), Maui (March 2013)

“Pedagogical synergies between Austrian Economics and the Case Method”, Association of Private Enterprise Education (APEE), Las Vegas (March 2012)

“Towards a Constitutional Theory of the Firm II” 9th Annual Conference, European Academy of Management (EURAM), Liverpool (May 2009)

“Towards a Constitutional Theory of the Firm” The Association of Private Enterprise Education (APEE), Guatemala City, Guatemala (April 2009)

“In Defence of Rational Ignorance: A Subjectivist’s Solution to Public Choice Excess” 78th Annual Meetings, Southern Economic Association, Washington DC (November 2008)

“Corporate Constitutionalism: Towards a Constitutional Theory of the Firm” 78th Annual Meetings, Southern Economic Association, Washington DC (November 2008)

“An Introduction to ‘Constitutional Management’” Association of Private Enterprise Education, Las Vegas, NV (April 2008) – presented by Nikolai Wenzel

“Austrian Economics Behind the Iron Curtain” Eastern Economic Association, Boston, MA (March 2008)

“Heterogeneous Entrepreneurs, the Monetary Footprint, and the Trade Cycle” 77th Annual Meetings, Southern Economic Association, New Orleans, LO (November 2007)

“A Nomos Model of Social Change: Where Human Action meets Cultural Theory” 76th Annual Meetings, Southern Economic Association, Charleston, SC (November 2006)

“The Diffusion of Economic Ideas in Europe: The Flat Tax (1994-2006)“ Third Annual Graduate Student Conference Idea Exchange: Mediums and Methods of Communication in Eastern Europe, Russia and Central Asia, Graduate Organization for the Study of Europe and Central Asia, University of Pittsburgh (February 2006)

“Ethnic Enterprise Governance“ Conference on Entrepreneurship Research, School of Management & School of Public Policy, George Mason University (November 2005)