ECONOMICS OF THE FIRM
This course provides a framework for systematic analysis of consumers’ and firms’ choices in light of global market dynamics to create and capture value, given the market structure of the industry in which the firm operates. We examine a range of economic issues that are the foundations for business decisions. We evaluate problems faced by managers and discuss how they can make sound decisions based on market information. In addition to the emphasis on firms’ internal factors, such as costs, we will focus on how the many external forces can have an influence on firms’ behavior.
GAME THEORY FOR ENTREPRENEURS
ECN6110 Game Theory For Entrepreneurs
3 Credit MSM Elective
In this course you will learn to analyze strategic situations that have an interactive component. You will learn how the economic perspective informed by game theory, probability and mathematics can be used to analyze complex situations that managers and entrepreneurs encounter on a regular basis. You will learn to anticipate how other individuals and firms will behave and react to the environment and actions of other players. Gaining an understanding of the structure and strategies of other players enhances your ability to play games well and to improve the results. You will also gain an appreciation for the game before the game, how to influence the structure, strategies and payoffs in order to promote specific behavior or outcomes. The analytical tools developed in this class are valuable for common business situations such as pricing models, investment decisions, contract design and dealing with the issues of moral hazard and adverse selection.
ECN7200 Managerial Economics
Managerial Economics (MICRO) - This course provides a framework for systematic analysis of consumer and firm’s choices in light of global market dynamics to create and capture value given the firm's and industry’s market structure. This framework is used to explain firm adjustment to changes in market conditions, as well as to changes in government policies and laws. While the course focuses on understanding how the value of the firm can be increased, it also addresses broader questions of efficiency, equity and sustainability.
MANG AT CROSSROADS BUS, GOVT, INTL ECN
ECN7201 Managing at the Crossroads: Business, Government, and the International Economy
Managing at the Crossroads: Business, Government, and the International Economy (Mac-BGIE) – This course focuses on domestic and international cause-and-effect relationships among credit markets, goods and services markets, and foreign exchange markets. This global framework is used to explain the effect that economic, social, and/or political shocks have on a nation’s growth and prosperity.
ECONOMIC & FINANCIAL FORECASTING
Economic and Financial Forecasting
If you have taken QTM9501, Business Forecasting, you cannot take this course.
Do you anticipate making or evaluating economic and business forecasts in your career? This "hands-on" course provides students a comprehensive introduction to the field of forecasting and econometrics. It covers three main areas of forecasting: basic statistical methods, structural models, and time series models. Throughout the course we will focus on applied examples and use software to forecast key economic and business measures of performance (such as asset pricing, investment risk, interest rates, unemployment rates, industry level and firm level sales, revenues and other variables) while learning to assess the strengths and weaknesses of these forecasts.
These techniques can improve corporate financial planning, marketing, sales forecasts, production planning, and many other decisions where better predictions in light of uncertainty can reduce costs, raise profits and lead to better decision-making.
This course is typically offered in the following semester: Fall
TRADE & GLOBALIZATION
Trade & Globalization
This semester-long course examines the application of economic concepts for strategic decision-making in a global market place. The global economy and the global marketplace make it necessary that students have functional knowledge and the ability to identify international market opportunities, government influences on competitiveness, market access problems and protectionism, and opportunities for outsourcing. This course will also offer an analysis of the consequences of regional economic integration, globalization trends, trade negotiations and actions by the World Trade Organization for export/import and/or foreign direct investment. Students will have the opportunity to perform an economic analysis of a specific trade or investment strategy, or of a policy issue of their choosing. Career considerations: international trade (import/export trade), international marketing, foreign investment and banking, global strategy and economic development. Complementary courses: International Finance; Global Strategic Management, Global Marketing; offshore and regionally focused courses and internships; international aspects of advanced marketing, entrepreneurship, management, finance, accounting and law courses.
This course is typically offered in the following semester: Spring
BUSINESS STRATEGY AND GAME THEORY
ECN7550- Business Strategy and Game Theory
3 credit graduate elective
This course makes extensive use of Game Theory (in addition to classical strategic models and applied microeconomic theory) to provide a systematic and rigorous approach for formulating winning strategies for creating and capturing value in the context of interdependence and uncertainty. In this course you will have an opportunity to, whenever possible, calculate the value of your strategy given market structure, firm's internal competencies, and industry dynamics. Case studies are used to illustrate successful application of strategies. The teaching method utilizes simulations, gaming, and practical, case based discussions. Topics include: the dynamics of pricing rivalry, entry decisions/entry deterrence, mergers and acquisitions, strategic commitment, product positioning, diversification, networks, make or buy decisions, negotiating and bidding. Antitrust issues will also be addressed.
ECN7555 Health Economics
3 credit elective
Health and medical care pervade every aspect of our lives. As the world population ages, an entirely new demographic stress will be put on healthcare systems. Some estimates project healthcare costs in U.S. to account for 20% of GDP in the next few years. There is an urgent need for a re-evaluation of the system and assessment of its business opportunities, which Health Economics is best suited for.
By combining microeconomic theories and quantitative methods this course will examine major players in this industry including pharmaceutical companies, hospitals, insurance companies, physicians, patients and the government. We will analyze problems each player faces such as "how do pharmaceutical companies quantify the costs and benefits of different medical interventions?", "how does competition (or lack of it) of HMOs and hospitals in the market influence prices, and choices in the market?", "how do insurance companies decide the rates and the consequences of rate structures for medical providers and patients?", "does more government spending lead to better health outcomes? If not, what does?". These and many other interesting questions will be examined to better understand outcomes and opportunities in this complex industry.
This course will interest any individual planning a career in the health care or related industries. It should also interest students who wish to see how economics is applied to business and policy issues.
COMP CHALLENGES OF NEW EUROPE
Competitiveness Challenges of the New Europe
3 credit off-shore elective
"Competitiveness Challenges of the New Europe" will explore an in-depth look at the EU and its institutions. The course will consist of 2 mandatory pre-departure sessions on campus in late February/early March, followed by a week in Milan, Italy. The course will conclude with a debrief session on campus following the group's return. While this course has a strong analytical perspective, discussion of day to day issues in lives of Italians - and even more so, operational and strategic issues of Italian companies - are at its core. Students will visit several Italian businesses and will be asked to apply principles introduced in the classroom at Babson as well as at Bocconi University to these visitations.
Bocconi University, the host for this program in Milan, is one of Babson's strongest strategic partners and is ranked the number one business school in Italy. Bocconi promotes both economic advancement and civic values by providing students with solid intellectual and professional training so they can contribute to the innovation and development of Italian and European businesses.
******Independent research is available for all academic divisions. Registration is manual for
students through Graduate Programs and Student Affairs******
Independent Research provides an opportunity to conduct in-depth research in areas of a student's own specific interest. Students may undertake Independent Research for academic credit with the approval of a student-selected faculty advisor, the appropriate division chair, and Graduate Programs and Student Affairs. Please note that a student is responsible for recruiting a faculty advisor through the student's own initiative and obtain the advisor's prior consent/commitment before applying for an independent research project. Authorization for such a project requires submission of a formal proposal written in accordance with standards set forth by the Graduate School. The research project normally carries 1.5 or 3 credits.For more information and a proposal outline please visit: http://life.babson.edu/organization/GPSA
STRATEGY & TACTICS OF PRICING
ECN9501 (formerly MKT9501)
STRATEGY & TACTICS OF PRICING
1.5 credit intensive elective
The fact that companies use a number of different pricing structures is a testament to the importance of pricing for profitability and a competitive growth enhancement. Which price is the best one? Price determination is a top priority for marketing managers in charge of a marketing strategy for an existing product. It is also a key variable for companies and/or entrepreneurs introducing new products to the market. While this course builds on general understanding of markets and pricing, it further develops a student's ability to apply economic reasoning to a firm's strategic pricing decision. In this course, we will analyze economic and competitive strategy foundations for pricing. We will develop a concept of target pricing aimed at creating value for customers and charging for that value, as well as work through implications of various pricing strategies for tactical and strategic pricing decisions.
Prerequisite: ECN7000 or MBA8520 or completion of the One Year or Two Year Program Modules