Political Science 252: Business and Public Policy
Fall 2011
Prof. Alan E. Wiseman
TTh: 9:35-10:50 AM
320 Commons Center
Office: 336 Commons Center
Office Hours: Wednesday, 9:30-10:30 AM
Phone: (615) 322-6242
Email: alan.wiseman@vanderbilt.edu
Course Overview
Business and Public Policy is designed for students with an interest in political science,
economics, management, or public policy, although students in a variety of fields may find the
class interesting and useful and are thus encouraged to enroll.
The course is conducted on a lecture and case discussion basis. A typical class section will
contain a short lecture that addresses a theoretical approach or conceptual tool and provides a
setting for the material being discussed. The class session will also involve discussion of cases
that serve as vehicles for application of the material. These cases involve issues of how the
private sector (e.g., firms, activist groups, etc.) interact with nonmarket forces such as the media,
public interest groups, regulatory agencies, etc. For a number of the class sessions, a group of
students will present the case details along with their own analyses. This will help the students
better understand the viewpoints of the leaders in the public and private sectors.
Broadly speaking, the environment of business is composed of related market and nonmarket
components. The nonmarket environment is characterized by the social, political, and legal
arrangements that structure interactions outside of—but in conjunction with—markets. This
course will focus on nonmarket factors that, like markets, have important consequences for the
performance of companies.
For the Fall 2011 version of Political Science 252, the topics and cases are organized in five
blocks of cumulative sessions:
1. Nonmarket Issues and Strategy
2. Nonmarket Strategy in Governmental Arenas
3. Government and Markets
4. Politics of the Private Sector Worldwide
5. Ethics and nonmarket strategy
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Readings
The course uses Business and its Environment (6th Edition, Prentice-Hall, 2010) by David P.
Baron. The book was written specifically for the case study approach taken by this class, and
has been adopted by a number of departments and business schools. It is broad in its outlook and
in the range of topics covered; and it is structured around a flexible but consistent framework.
Several handouts will also be delivered throughout the quarter.
Course requirements and grading
Grades will be assigned a weighted average of four components—class participation (20%), the
midterm exam (25%), the final exam (30%), and the class project (25%). The class participation
component will be based largely on the student presentations (totaling 10% of the student’s
grade), but will also weigh brief written assignments and student contributions on days when the
student is not assigned to present materials (totaling 10%). Students are, of course, expected to
have read the material and to be prepared for discussion of the cases for each class. This
includes sketching brief answers to the preparatory questions that follow most of the cases.
Midterm and final exams are described below.
The class project will be conducted on a continuous basis throughout the quarter. Students will
be organized into groups of no fewer than five members, and no more than six members. Each
group will then confront an important issue in business-government relations, typically through
interaction with a Nashville-area business or governmental office. Students will be responsible
for identifying businesses or government offices tackling problems of interest to them. Students
will gain insight into the nonmarket issues being confronted in these organizations, and they will
use the frameworks and lessons learned in class to offer advice and a final report to business
leaders and public officials regarding how best to address their nonmarket concerns. Students
will turn in their report in the final two weeks of the semester (both to Prof. Wiseman and to the
organization being advised), and will present their findings orally to the class. Grades will be
based on the oral presentation (totaling 10% of the final grade), on interim written assignments
and the final report (10%), and peer evaluation of individual contributions to the group effort
(5%). Reports should detail the problem faced by the business or government officials, the
group’s recommendations for addressing the problem, and how those recommendations are
based on frameworks from the class.
No late work will be accepted unless previously arranged with Prof. Wiseman. Such
arrangements require well-substantiated and sound reasons, and will result in progressively
lowered grades depending on how late the work is finally produced.
Academic Honesty: I expect all of the work you do in this course to be your own. I will tolerate
absolutely no cheating or plagiarism (using someone else’s words or ideas without proper
citation). I will report any cases of cheating or plagiarism to the Vanderbilt Honor Council, and
they will be handled according to university policy.
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Course Outline
Part I. Nonmarket Issues and Strategy
1. Thurs. Aug. 25: INTRODUCTION TO THE COURSE
2. Tues. Aug 30: INTRODUCTION TO THE NONMARKET ENVIRONMENT
Reading:
Chapter 1(1-16)
Case:
Fuel Economy Standards 2007 (259-263)
3. Thurs. Sept. 1: NO CLASS
Assignment:
Students are expected to meet during this time to organize study/project
groups and to identify potential topics for research projects.
4. Tues. Sept. 6: THE EMERGENCE OF ISSUES
Reading:
Chapter 2 (33-42, 49-53) and Chapter 3 (66-73)
Cases:
Illinois Power Company (88-89)
5. Thurs. Sept. 8: PRIVATE NONMARKET ACTION
Reading:
Chapter 4 (90-108)
Case:
Shell, Greenpeace, and Brent Spar (109-112)
Part II. Nonmarket Strategy and Government Institutions
6. Tues. Sept. 13: MOBILIZATION OF INTERESTS
Reading:
Chapter 6 (153-162)
Cases:
Repeal of the Luxury Tax (184)
Tobacco Politics (181-183)
Assignment:
Each group turns in a summary of their project idea. The summary should
include a one-page description of the business-government issue being
confronted, along with a concise list of the 4Is.
7. Thurs. Sept. 15: INTEREST GROUP ANALYSIS
Reading:
Chapter 6 (162-174), Chapter 7 (189-196, 208-211)
Case:
Scrubbers and Environmental Politics (183-184)
(Group Presentation-2 Groups)*
Assignment:
Each study group is to prepare a distributive politics spreadsheet for the
scrubbers case, plus a single powerpoint slide of the spreadsheet. At the
end of the class, groups will turn in a copy of their powerpoint slides.
8. Tues. Sept. 20: ANALYSIS OF VOTING INSTITUTIONS (I)
Reading:
Chapter 6 (175-180), Chapter 7 (195-206)
Krehbiel, Keith. 1999. “Pivotal Politics: A Refinement of Nonmarket
Analysis for Voting Institutions.” Business and Politics. 1 (1): 63-81.
(OAK)
Cases:
Federal Express and Labor Organization (212-213)
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9. Thurs. Sept. 22: ANALYSIS OF VOTING INSTITUTIONS (II)
Reading:
Krehbiel, Keith. 1999. “Pivotal Politics: A Refinement of Nonmarket
Analysis for Voting Institutions.” Business and Politics. 1 (1): 63-81.
(review)
Assignment:
Questions at the End of Federal Express and Pivotal Politics (tbd)
10. Tues. Sept. 27: REGULATORY INSTITUTIONS: THEORY AND PRACTICE
Reading:
Chapter 6 (175-180, review if needed), Chapter 8 (220-227), and Chapter
10 (302-325)
Case:
The FCC and Broadband Regulation (326-330)
11. Thurs. Sept. 29: INFORMATIONAL LOBBYING AND THE PHARMACEUTICAL
INDUSTRY
Reading:
Chapter 1 (17-20), Chapter 10 (302-310—review, if necessary—316-325)
Case:
Pharmaceutical Switching (252-258).
Part III. Government and Markets
12. Tues. Oct. 4: ANTITRUST (I)
Reading:
Chapter 9 (265-288)
13. Thurs Oct. 6: NO CLASS (FALL BREAK)
14. Tues. Oct. 11: ANTITRUST (II)
Reading: Chapter 9 (265-288) (review, if needed)
Cases:
The Microsoft Antitrust Case (294-301)
Assignment:
Study groups will prepare for a debate on antitrust in internet/software
industry, taking either the side of Microsoft or Netscape.
(Group Presentation—2 Groups)
15. Thurs. Oct. 13: REGULATORY AND PRODUCT SAFETY
Reading:
Chapter 12 (387-402)
Case:
California Space Heaters, Inc. (404-406)
(Group Presentation)
Assignment:
Each group turns in a brief summary of their class project to date,
highlighting the remaining steps needed to produce their final report and
any difficulties they foresee.
16. Tues. Oct. 18: INTELLECTUAL PROPERTY
Reading:
Chapter 12 (374-383)
Case:
eBay and Database Protection (433-438)
17. Thurs. Oct. 20: MIDTERM EXAMINATION
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Part IV: Politics of the Private Sector Worldwide
18. Tues. Oct 25: NONMARKET ANALYSIS IN GLOBAL MARKETS
Reading:
Chapter 14: (451-473)
Case:
Toys ‘R’ Us and Globalization (614-618)
19. Thurs. Oct. 27: NONMARKET STRATEGY IN THE EUROPEAN CONTEXT
Reading:
Chapter 15 (481-505)
Case:
The European Union Carbon Tax (506-509)
20. Tues. Nov. 1: INTERNATIONAL TRADE AND NONMARKET STRATEGY
Reading:
Chapter 18 (574-596)
Case:
Cemex and Antidumping (597-602)
21. Thurs. Nov. 3: SOCIAL, ECONOMIC AND POLITICAL CHANGE IN CHINA
Reading:
Chapter 16 (517-540)
Case:
Direct Selling in China (543-544)
(Group Presentation)
Part V. Ethics and Nonmarket Strategy
22. Tues. Nov. 8: CORPORATE RESPONSIBILITY
Reading:
Chapter 19 (619-637),
Case:
Advanced Technologies Laboratories, Inc. (746-748)
(Group Presentation)
23. Thurs. Nov. 10: UTILITARIANISM AND MANAGEMENT
Reading:
Chapter 20 (653-674), Chapter 23 (758-770)
Case:
Complications in Marnera (772-773)
(Group Presentation)
24. Tues. Nov. 15: RIGHTS AND DUTIES
Reading:
Chapter 21 (681-698)
Case:
Genetic Testing in the Workplace (712-713)
(Group Presentation)
25. Thurs. Nov. 17: DISTRIBUTIVE JUSTICE
Reading:
Chapter 20: 698-710
Case:
Citigroup and Subprime Lending (714-716)
(Group Presentation)
November 19-27: THANKSGIVING BREAK
26. Tues. Nov. 29: STUDENT PRESENTATIONS (I)
27. Thurs. Dec. 1: STUDENT PRESENTATIONS (II)
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28. Tues. Dec. 6: STUDENT PRESENTATIONS (III)
29. Thurs. Dec. 8: NORMATIVE AND STRATEGIC ANALYSIS AND CONCLUSION
Reading:
Chapter 16 (517-540, review if necessary), Chapter 22 (720-739)
Case:
Fresenius Medical Care in China (OAK)
(Group Presentation)*
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