Santa Clara University

Leavey School of Business

Course Descriptions

ECONOMICS (ECON)

Professors: Mario L. Belotti, Alexander J. Field (Chair), John M. Heineke, Kris J. Mitchener, William A. Sundstrom
Associate Professors: Linda Kamas, Michael Kevane, Serguei Maliar, Helen Popper, Dongsoo Shin
Assistant Professors: Christian Helmers, John Ifcher, Goncalo Pina, Teny Maghakian Shapiro, Arunima Sinha
W. M. Keck Foundation Professor: Mario L. Belotti
Michel and Mary Orradre Professor: Alexander J. Field
Robert and Susan Finocchio Professor: Kris Mitchner

ECON 2401. Economics for Business Decisions (Managerial Economics)
Introduces the use of microeconomics in making better business decisions. Includes topics on determinants of demand, role of demand elasticities in an optimizing firm, identification of costs which are relevant to business decisions, estimation and forecasting demand and costs using regression analysis, differences between various market structures and consequences for business decisions, and optimal pricing in segmented and non-segmented markets. Integral part of the course is the use of current business articles to integrate and illustrate topics. Emphasizes applications of microeconomic theory. Open to MSF and MSE students only. Prerequisite: OMIS 2353. (3 units)

ECON 3400. Microeconomics and Macroeconomics in the Global Economy – Part 1
The first part of the course utilizes the tools of microeconomic theory to analyze and understand essential topics related to optimal business decisions. Topics include the characteristics of costs and demand and profit maximization pricing. Market structures are studied with a focus on differences and the concomitant consequences for business decisions. Students will understand the various market structures in the context of the global trade environment. Regression analysis is used to rigorously estimate costs and demand. The class utilizes many examples from the Silicon Valley to help integrate market theory and practice and provides a powerful analytical basis for the further study of business topics. Prerequisite: OMIS 3350. (Part 1 of 6 unit cohort course. Must be taken in sequential quarters.)

ECON 3402. Microeconomics and Macroeconomics in the Global Economy – Part 2
Part two of the course is designed to help students better understand the macroeconomic environments—national and global—in which businesses, households, and governments operate—and why those environments change. Some of the questions addressed are: Why does an economy grow over time? What causes recessions and unemployment? Why do we have financial crises, and why are they potentially so damaging? Are government deficits detrimental or beneficial, and under what conditions? What determines changes in interest rates, the rate of inflation, and the foreign exchange rate, and what are the consequences of such changes? Prerequisite: ECON 3400. (Part 2 of 6 unit cohort course. Must be taken in sequential quarters.)

Students who have completed ECON 401 and ECON 405 in the old curriculum have satisfied the ECON 3400 and 3402 requirement. Students switching to the 2013 curriculum, who have only completed ECON 401 must register for and complete ECON 405 before Summer 2014 and are not eligible to register for ECON 3402.

ECON 3422. Topics in Profit Maximizing Pricing
Company strategies to approximate the profit maximizing price of microeconomic theory using only information that is readily available to the company. Topics include: costs relevant for pricing decision; financial analysis for determining change in sales needed to make price changes profitable; analysis of customers and customer price sensitivity; pricing in segmented markets; anticipating and influencing competitor pricing decisions; competitive advantages and disadvantages in profit focused pricing decisions. Topics are integrated to provide real-world path to profit maximizing pricing. Class run as a seminar with student interaction and student research projects. Cross-listed as MKTG 3588. Prerequisites: ECON 401 or ECON 2401 or ECON 3400 and MKTG 551 or MKTG 2552 or MKTG 3552, differential calculus, and a working knowledge of hypothesis testing and regression analysis. (3 units)

ECON 3424. Economics of Decision Making Under Uncertainty
Examines managerial decision-making from the behavioral point of view. Identifies the normatively “correct” decision in a number of specific decision problems; compares with the actual decisions most managers make. Discusses actual decisions and the nature and frequency of biases, as well as techniques for eliminating bias to improve decision-making. Prerequisite: ECON 401 or ECON 2401 or ECON 3400. (3 units)

ECON 3430. Game Theory and Strategic Behavior
Studies theoretical concepts and tools for analyzing issues in the business environment such as conflict, bargaining, pretending and shirking in organizations and markets, agenda construction, and strategic commitment. Teaches game theoretical topics such as Nash-equilibrium, Sub game perfection, Bayesian Nash-equilibrium, Harsanyi transformation, commitment, and Perfect Bayesian Equilibrium. Prerequisites: ECON 401 or ECON 2401 or ECON 3400 and working knowledge of calculus. (3 units)

ECON 3432. International Trade
Applies principles and techniques to patterns of foreign trade, foreign investment and the national economy, international agreements and institutions, and environmental and social effects of trade. Covers theory of comparative advantage, distributional issues relating to trade, political economy of trade protection and trade agreements, and empirical issues in applied trade analysis. Features lectures, discussions, and short papers on current policy issues. Prerequisites: ECON 401 or ECON 2401 or ECON 3400 and ECON 405 or ECON 3402. (3 units)

ECON 3434. Money and the Economy
Examines the financial system as a whole. Considers the basic determinants of supply and demand for loanable funds, the manner in which funds are exchanged in the money and capital markets, the influence of demand and supply factors on interest rates, the impact of changes in interest rates, money supply, and loanable funds on the level of economic activity. Prerequisite: ECON 405 or ECON 3402. (3 units)

ECON 3466. International Monetary and Financial Relations
Thoroughly examines the international monetary system and international financial arrangements with emphasis on policy toward exchange rates and balance of payments crises in emerging markets. Studies foreign exchange markets, balance of payments, international liquidity, central bank policy and international regulatory institutions, and macroeconomic modeling. Prerequisite: ECON 405 or ECON 3402. (3 units)

ECON 3696. Experimental Course
Covers special topics; offered on an occasional basis. (3 units)

ECON 852. Managerial Economics for Business Decisions
Explores microeconomic theories used for managerial decisions. Discusses the economic behavior of individuals and firms to understand how their interactions in markets impact managerial decisions. Discusses concepts of market, price elasticity, theory of consumer choice, and both intra-firm and inter-firm strategic interactions using various analytical tools. Open to AMBA program students only. (3 units)

ECON 857. Macroeconomics
Studies determinants of the level and rate of growth of economic output, income, employment and prices, and the level of interest and foreign exchange rates. Prepares decision-makers to understand how an economy functions in the aggregate, and to help them interpret, analyze, and operate within a changing macroeconomic environment. Open to AMBA program students only. (3 units)

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