UNIVERSITY AT BUFFALO SCHOOL OF MANAGEMENT MGE 302 – Applied Economics Sections A (12156) & F1E (12155) Fall 2020 Online & Asynchronous Instructor: Dr. Nicole L. Hunter Office Hours: M 9:30-11am, W 1-2:30pm & by appt. Lectures: Asynchronous; Posted M at 8:00am EST Office: Jacobs 247 Email: nlhunter@buffalo.edu Head TA: Scott Laing Office Hours: TR 10-11:30am Office: Jacobs 253 Email: scottlai@buffalo.edu TA: Austin Kuznik Office Hours: TR 12:30-2pm Office: N/A Email: amkuznik@buffalo.edu TA: Jasmine Mohan Office Hours: WF 10-11:30am Office: N/A Email: jmohan2@buffalo.edu TA: Samantha Moser Office Hours: TR 3-4:30pm Office: N/A Email: smmoser@buffalo.edu Course Description: Applied economics takes the fundamental principles of microeconomics and considers them more in depth, with an added emphasis on the firm’s perspective in economic situations. In addition to market and demand analysis, we will cover more advanced topics such as profit maximization in different market structures, pricing models, price discrimination, game theory and decision making. Throughout the course we will consider real world examples and applications of the material covered. Prerequisites: ECO 181 & ECO 182, MGQ 201, MTH 131 or MTH 121 or MTH 122, and junior standing in the School of Management. Student Learning Outcomes: By the end of this course, students should be able to: • Use economic theory to describe and analyze demand, supply and market equilibrium as well as calculate and apply elasticities to describe market and consumer behavior. • Compute the relevant costs of any decision and use cost-benefit analysis to identify optimal outcomes. • Identify and analyze the profit-maximizing price and volume decisions for firms in all market structures. • Use game theory to describe and predict how the actions of managers in oligopoly markets influence and are influenced by the actions of their competitors and others in the marketplace. • • Explain why uniform pricing does not generate the maximum profit when firms have market power and describe pricing models and strategies that can generate more revenue. Examine the nature of market failures and discuss corrective measures. Course Materials: Course content will be delivered through a series of short videos, lectures, case studies, and current events. Materials for the week will be posted at 8:00am EST every Monday. Materials will be designated (M) or (W) to designate the suggested days students should work on the material. Keep in mind these are merely suggestions to help students stay on track with completing course content. 1. Principles of Managerial Economics published by the Saylor Foundation 2014. 2. Managerial Economics and Organizational Architecture, by Brickley et. al., 6th ed. Discussion Sessions: This is an additional resource available to all students. Once per week a 50-minute live zoom session will be held in which material from the previous weeks’ course will be reviewed. Students are encouraged to ask questions during the session via chat, or via email prior to the session. Questions can include clarification on concepts, questions from assignments or quizzes, course readings, etc. These sessions are optional; however, extra credit can be earned by attending and participating in the full 50-minute session. Extra credit can be earned up to 4 times throughout the semester. Additional sessions can be attended and are encouraged. Assessments: • Homework: Homework will be assigned after each topic is covered, starting with week 2, and will be available on UBLearns. Each assignment will have a submission deadline. Failure to complete the assignment by the deadline will result in a grade of zero for that assignment. There will be no extensions granted except for documented and serious circumstances. 50% of the student’s grade will come from these homework assignments. The lowest homework grade will be dropped. • Quizzes: 4 quizzes will be given throughout the semester and will be available on UBLearns. Quizzes will account for 20% of the final grade. *The dates for quizzes are as follows: 9/23, 10/14, 11/4, 12/2. Quizzes will be available from 6am-midnight on each of these days. If a student has a conflict with any of these dates a make-up quiz must be arranged with the instructor prior to the scheduled quiz date. • Exams: There will be one exam given at the end of the course. The exam will count for 30% of the final grade. If a student has a conflict with the scheduled exam a make-up exam must be arranged with the instructor prior to the scheduled exam date. The final exam is schedule for: TBD Communication: • UBLearns: Be sure to check UBLearns announcements regularly. Any information I need to communicate regarding the class or lecture will be posted here. • Email: o If you have questions pertaining to the course which are not personal in nature send your email to mgt-mge302@buffalo.edu. This includes questions about due dates, lectures, readings, assignments, etc. o If you have a personal matter you would like to discuss email me directly at nlhunter@buffalo.edu. Grading: The following are the weights given to homework, quizzes and exams: Homework Quizzes Final Exam 50% 20% 30% The range for grading is as follows: A 93+ A90-92 B+ 87-89 B 83-86 B80-82 C+ 77-79 C 73-76 Tentative Course Outline (subject to change) Week 1: Introduction to Applied Economics Week 2: Behavior and Incentives Week 3: Markets Week 4: Demand Quiz 1 Week 5: The Firm - Production and Cost Week 6: Market Structure Week 7: Pricing with Market Power Quiz 2 Week 8: Creating and Capturing Value Week 9: Game Theory Week 10: Contract Theory Quiz 3 Week 11: Organizational Architecture C70-72 D 65-56 F 55 or below Week 12: Vertical Integration and Outsourcing Week 13: Regulation & Policy Week 14: Regulation & Policy Continued Quiz 4 Week 15: Review & Semester Wrap Up Incomplete Policy: http://www.buffalo.edu/recreation/services/academics/academic-incompletepolicy.html Academic Integrity Policy: Students must be familiar with and abide by the university’s policies and procedures on Academic Integrity which can be found at the following link: https://catalog.buffalo.edu/policies/academic_integrity_2019-20.html Accessibility Resources: If you have a disability and/or may require some type of instructional and/or examination accommodation, please inform me early in the semester so that we can coordinate the accommodations you may need. If you have not already done so, please contact the Accessibility Resources office. The office is located at 60 Capen Hall and the telephone number is (716) 645-2608. More information can also be found at https://www.buffalo.edu/studentlife/who-we-are/departments/accessibility.html
