PPT-Econ

Examples Plus Multimedia Welcome to this multimedia example To navigate through this example you will need to click the appropriate green arrows do not use the arrows on your keyboard Begin. Slides. . © Michael R. Ward, UTA 2014. Valentine's Day. On Valentine's Day, the price of roses increases by more than the price of greeting cards. . Why. ? . What . makes roses and cards different and how does . Slides. . © Michael R. Ward, UTA 2014. “The Market For Lemons. ”. Baby Model. Looking . for a used . car . The Buyer . cannot tell “lemons” from “. cherries” . But . Seller . knows. Actual range of values are from $2,000 to $4,000 with each price equally . Slides. . © Michael R. Ward, UTA 2014. Moral Hazard. Once you have insurance, the cost of an accident is reduced, which also reduces the cost of the risky behavior, which results in riskier . behavior. Slides. . © Michael R. Ward, UTA 2014. Today. Syllabus. What the Course is About. What this Book is About. The One Lesson of Business. Econ 5313. Oil Lease Bidding. A young geologist was preparing a bid recommendation for an oil tract in the Gulf of Mexico. His expertise and the information at hand led him to recommend a bid of $5 million. Instead, a senior manager bid $20 million - far over the next highest-bid of $750,000. What, if anything, is wrong?. Slides. . © Michael R. Ward, UTA 2014. Divisions of a Firm. A . Division. is any . logical . sub-organization . of the . firm . Sometimes referred to as its Organizational . Architecture. Ex. . Functional. Slides. . © Michael R. Ward, UTA 2014. The “Boundaries. ” . of the Firm. Why . are some tasks organized within firms and others across firms?. Hayek – Transacting across firms reveals price information that is useful for decision making. Slides. . © Michael R. Ward, UTA 2014. Donut Holes. Making Decisions on the Margin. A friend does an experiment in class. Hands one student a box of donut holes. “Eat as many as you want.”. Hands another student a watch. “Mark the time between donut holes.”. Slides. . © Michael R. Ward, UTA 2014. Some Theory Background. Econ 5313. Lots of formulas and math with this chapter. Trust me, there is a payoff. Demand curves slope downward. For two reasons:. People value the first unit more than the second, etc.. Slides. . © Michael R. Ward, UTA 2014. Tool Merger. Black & Decker, a power tool company, and Stanley, a maker of hand tools, have . recently merged. . How is this likely to affect tool prices. Slides. . © Michael R. Ward, UTA 2014. Organizational Size. A Short History. Middle Ages (500-1700) – sole craftsman had shop . downstairs. Early Industrial Revolution (1700-1800) – cottage industry had handful of workers (Smith’s Pin Factory). 2. Why study bubbles?. “[An] issue that clearly needs more attention is the formation and propagation of asset price bubbles…I suspect that progress will require careful empirical research with attention . 1 Honors:Economics (ZECO) ZECO-215. Hnrs:Principles of Macroeconmc. 3 Hours. See course description for ECON-215. Contains further components required of Honors Program students. Prerequisite: (MATH- NotallclawbacksarethesameConsequencesofstrongversusweakclawbackprovisionsMichaelHRErkensYingGanWeowespecialthankstoJeroenSuijsforhisinsightsvaluablecommentsandsuggestionsWearealsogratefultocommentsand thepresenceofinformationcostsandmisalignedincentivesInasurveyofmanufacturingrmsRoss1986observesthattopcorporatemanage-mentisoftentoobusyandpreoccupiedwithotherresponsibilitiestohavethetimeandresources