EMBA Managerial Economics & Business Ethics – Cotrugli

aje on March 16, 2024

Background readings:

The textbook is Economics: A Complete Guide for Business by Anthony J. Evans (2020). I wrote it specifically for this course and all students are advised to read it in conjunction with the lectures. 
 
There are plenty of other good textbooks on the market. I also recommend Managerial Economics by Luke M. Froeb, Brian T. McCann, Michael R. Ward and Mikhael Shor (Thomson Southwestern 3rd edition, 2013) and A Concise Guide to Macroeconomics by David Moss (Harvard Business School Press, 2007). 

Course handouts: Managerial Economics and Business Ethics

Day 1

1. Incentives matter* +

Textbook reading: Chapter 1

2. Understanding cost* +

Textbook reading: Chapter 2

3. Auctions +

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

Discussion question: What are the alternatives to auctions?

Extra activity: The Dutch flower auction

Textbook reading: Chapter 3

4. Prediction markets +

Coles, Peter, Lakhani, Karim and McAfee, Andrew, “Prediction Markets at Google” Harvard Business School 9-607-088, August 20th 2007 (£)

Prediction Markets, February 2016

Textbook reading: Chapter 4

Day 2

Before the Macroeconomics class you should watch this video:  and complete this quiz.

6 & 7. 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 reading: Chapter 7 and Chapter 8

8 & 9. Fiscal policy* +

Textbook reading: Chapter 9

10. Macro Policy Workshop +

Extra activity: NGDP masterclass

After the Macroeconomics class you should watch this video and complete this quiz.

Day 3 

  1. Managerial Insights*
  2. Macro Risk*
  3. Markets: The First AI* +
    • For this session there are 4 readings. You may find some of them tough going. But you’ll have some time in class as well. Please try to read them. 
    • “On the Origin of Money” (Carl Menger, 1892, Economic Journal, (2):239-55)
    • “The Use of Knowledge in Society” (Friedrich Hayek, 1945, American Economic Review, 35(4):519- 530)
    • “I, Pencil” (Leonard Read, 1958, Foundation for Economic Education)
    • “What is Seen and What is Not Seen” (Frederic Bastiat, 1850, Paris: Guillaumin. This version taken from The Bastiat Collection, 2nd Ed., Mises Institute, 2007, pp. 1-11 only)

    Here is a PDF copy of the reading pack which should be read:

    Download the reading pack here.

  4. Group preparation
  5. Group presentations

Day 4 See Business Ethics.

Before the Business Ethics class you should read about these mini cases: and complete this form.

 

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 through the Programme Office. Follow the + links for additional resources.