Search result: Catalogue data in Spring Semester 2014

Management, Technology and Economics Master Information
Core Courses
NumberTitleTypeECTSHoursLecturers
363-0302-00LHuman Resource Management: Leading Teams Information W+3 credits2GG. Grote
AbstractThe basic processes of human resource management are discussed (selection, reward systems, performance evaluation, career development) and embedded in the broader context of leadership in teams. Leadership concepts and group processes are presented. Practical instruments supporting leadership functions are introduced and applied in business settings.
ObjectiveThe basic processes of human resource management are discussed (selection, reward systems, performance evaluation, career development) and embedded in the broader context of leadership in teams. Leadership concepts and group processes are presented. Practical instruments supporting leadership functions are introduced and applied in business settings.
363-0342-00LGeneral Management II: Leading Change in Organizations Information W+3 credits2GS. Brusoni, P. Baschera, M. Füllemann
AbstractThis course discusses a set of principles, methods and tools to understand and lead change in established organizations. Core topics include leadership, business model innovation, business excellence. Guest lecturers and industry experts take part to the course to share their experiences with the students.
ObjectiveThe aims of this course are twofold. First, the course intends to illustrate methods and tools to initiate and manage change at different organizational levels: technical positions, middle management, board. Second, the course will illustrate change situations which impact specific operating processes, as well as broader strategic constructs (e.g. business models).
ContentChange is a pervasive and ubiquitous aspect of organizational life. It occurs at all hierarchical levels and functions. Sometimes it is embraced, sometimes it generates conflicts and tensions. This course discusses how leaders and leadership processes can help the introduction of change in established organizations. Core topics include leadership, the role of ethics in decision making, diversity as a change driver, business model innovation, business excellence. Guest lecturers from industry play a key role in shaping the discussion with the students.
Lecture notes19.02.2014 (HG G5, 8.15-10.00)
Session 1: Introduction (Stefano Brusoni)
Readings:
- Halall, WE. 1974. "Toward a General Theory of Leadership", Human Relations, 27(4): 401-416. (required)
- Barrow, JC. 1977. "The Variables of Leadership: A Review and Conceptual Framework", AMR, 2(2): 231-251.

26.02.2014 (room HG F7, 16.00-18.00)
Session 2: Distributed leadership (Andrea Montefusco)
Readings:
- Ancona, D, Malone, TW, Orlikowski, WJ, and Senge, PM. 2007. "Leader. In Praise of the Incomplete", HBR, February: 92-100. (required)
- Pentland, AS. 2012. "The New Science of Building Great Teams", HBR, April:60-70.
- McGrath, RG. 2013. "Transient Advantage", HBR, June: 62-70.

05.03.2014 (HG G5, 8.15-10.00)
Session 3: Leadership/diversity (Louise Muhdi)
Readings:
- Guidelines of session 3
- Link
- Link
- Green, KA, López, M, Wysocki, A, Kepner, K. "Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools", University of Florida.(required)
- The Economist. 2014. "Schumpeter's notebook. The downside of diversity". (required)
- ETH case study: Prasad Ramakrishnan (required)

12.03.2014 (HG G5, 8.15-10.00)
Session 4: Leadership/diversity (Louise Muhdi)
Readings:
- Guidelines of session 4
- Short bios of guests: Ralph Schonenbach, Dana Brice Smith, Martin Möller, and Heike Moses
- The Economist. 2014. "Business. Why the world needs women entrepreneurs". (required)
- The Economist. 2013. "Corporate governance. More women on boards". (required)
- The Economist. 2012. "Waving a big stick. Quotas for women on boards in the European Union are moving a little closer". (required)
- The Economist. 2014. "Women in business. To B or not to B". (required)

19.03.2014 (HG G5, 8.15-10.00)
Session 5: Leadership (Stefan Seiler)
Readings for sessions 5 and 6:
- Seiler, S, Fischer, A, and Voegtli, SA. 2011. "Developing Moral Decision-Making Competence: A Quasi-Experimental Intervention Study in the Swiss Armed Forces", Ethics & Behavior, 21(6): 452-470. (required)
- Seiler, S, Fischer, A, and Ooi, YP. 2010. "An Interactional Dual-Process Model of Moral Decision Making to Guide Military Training", Military Psychology, 22(4): 490-509.
- Seiler, S and Pfister, AC. 2009. "Why Did I Do This?' Understanding Leadership Behavior Through a Dynamic Five-Factor Model of Leadership", Journal of Leadership Studies, 3(3): 41-52. (required)

21.03.2014 (room tbd, 8.15-10.00)
Session 6: Leadership (Stefan Seiler)

02.04.2014 (HG G5, 8.15-10.00)
Session 7: Leading change (Pius Baschera)
Reading for sessions 7, 8, and 9:
- Kotter, JP. 1995. "Leading Change: Why Transformation Efforts Fail", HBR, March-April: 59-67. (required)

09.04.2014 (HG G5, 8.15-10.00)
Session 08: Business Model Innovation and Culture Development (Pius Baschera)

16.04.2014 (HG G5, 8.15-10.00)
Session 09: Netflix Case (Pius Baschera)

30.04.2014 (HG G5, 8.15-10.00)
Session 10: Change management (Markus Füllemann)
Reading for sessions 10, 11, and 12:
- Kotter, JP. 1996. Leading Change. Boston, MA: Harvard Business Press Book.(Chapters 1 and 2 required)

07.05.2014 (HG G5, 8.15-10.00)
Session 11: Change management (Markus Füllemann)

14.05.2014 (HG G5, 8.15-10.00)
Session 12: Change management (Markus Füllemann)

21.05.2014 (HG G5, 8.15-10.00)
Session 13: Changing buying strategy and the role of consultants (Accenture)
Reading:
(tbd)

28.05.2014 (HG G5, 8.15-10.00)
Session 14: Mock exam (Stefano Brusoni, Barbara La Cara, and Onur Saglam)

05.06.2014 (room tbd, 8.15-9.45)
Examination
363-0392-00LStrategic Management Information Restricted registration - show details W+3 credits2GS. Herting
AbstractThis courses conveys concepts and methods in strategic management, with a focus on competitive strategy. Competitive strategy aims at improving and establishing position of firms within an industry.
ObjectiveThe lecture "strategic management" is designed to teach relevant competences in strategic planning and -implementation, for both professional work-life and further scientific development. The course provides an overview of the basics of “strategy” and the most prevalent concepts and methods in strategic management. The course is given as a combination of lectures about concepts/methods, and case studies where the students asked to solve strategic issues of the case companies. In two sessions, the students will also be addressing real-time strategic issues of firms that are represented by executives.
ContentContents:
a. Introduction to strategy
b. Industry dynamics I: Industry analysis
c. Industry dynamics II: Analysis of technology and innovation
d. The resource-based theory of the firm
e. The knowledge-based theory of the firm
Prerequisites / NoticeSession #0 (February 24): Organizational Issues & How to Solve a Case
Session #1 (March 10): Introduction to Strategy
Session #2 (March 17): Industry Dynamics I
Session #3 (March 24): Guest Lecture
Session #4 (March 31): Industry Dynamics II
Session #5 (April 7): Resource-Based Theory
Session #6 (April 14): Knowledge-Based Theory
Session #7 (May 5): Guest Lecture
363-1012-00LInformation Systems Implementation Information W+3 credits2GJ. Sutanto, L. Goutas
AbstractThere are six key events in IS implemention: 1. Deciding on what to develop, 2. IS design and development, 3. IS evaluation and migration, 4. Managing user resistance, 5. Managing change, and 6. IS maintenance. Besides learning all these key events, in this course you will also learn about the latest trend that may affect traditional way of IS implementation such as cloud computing.
Objective1. Be aware of the types of IS in an organization and across the organizations
2. Understand IS design aspects, development methodologies, and migration approaches
3. Be able to critically evaluate IS
4. Understand how to overcome resistance and manage changes due to the introduction of new IS
5. Be up-to-date of the latest trends in IS that may affect the traditional ways of IS implementation
363-0570-00LPrinciples of Econometrics
Prerequisites: previous knowledge in economics.
W+3 credits2GJ.‑E. Sturm, S. Pichler
AbstractThis econometrics course focuses on regression analysis. It covers fundamental methods of cross-sectional, time series, and panel data analysis.
ObjectiveThis course provides an introduction to fundamental econometric methods. An equal emphasis is placed both on theoretical understanding and on applying methods to real-world problems.
ContentThis course is intended for students who are interested in econometrics and have already taken introductory course in economics (e.g. the course "Principles of Macroeconomics". Econometrics stands for the application of some specific statistical methods to the field of economics. In econometrics, the starting point is a theoretical model explaining some aspect of the economy. This model is compared with the available statistical facts about the economy. Econometrics uses statistical tests to tackle various questions, including: How well or badly does the model fit the observed facts? Does any other available model fit them any better? In any model, how large is the estimate of the effects of one variable on any other, and how reliable is the estimate? How far into the future, and with what degree of reliability, can the model predict any variable of interest?
LiteratureWooldridge, Jeffrey M. (2013), Introductory Econometrics, International Edition, 5th Edition.
363-0515-00LDecisions and MarketsW+3 credits2VA. Bommier
AbstractThis course provides an introduction to microeconomics. The course is open to students who have completed an undergraduate course in economics principles and an undergraduate course in multivariate calculus. The course emphasizes the conceptual foundations of microeconomics and concrete examples of their application.
ObjectiveMicroeconomics is a element of nearly every subfield in economic analysis today. Model building in economics relies on a number of fundamental frameworks, many of which are introduced for the first time in intermediate microeconomics, a course which is customarily offered for third-year undergraduate majors in economics.

The purpose of this course is to provide MTEC master students with an introduction to graduate-level microeconomics, particularly for students considering further graduate work in economics, business administration or management science. The course provides the fundamental concepts and tools for graduate courses in economics offered at ETH and UZH.
ContentThe lectures will cover consumer choice, producer theory, markets and market failure. The course will include a concrete examples of the use of the theory of choice in applied economics.
Lecture notesThe course will be mostly based on the textbook by R. Serrano and A. Feldman: "A short Course in Intermediate Economics with Calculus" (Cambridge University Press, 2013)
Another textbook of interest is the one by H. Varian "Intermediate Microeconomics: A Modern Approach" (Norton, 2009)
LiteratureExercises are available in the textbook of R. Serrano and A. Feldman on which the lecture is based ("A short Course in Intermediate Economics with Calculus", Cambridge University Press, 2013).
More exercises can be found in the book by T. Bergstrom and H. Varian, "Workouts in Intermediate Microeconomics" (Norton, 2010)
363-0575-00LEconomic Growth, Cycles and PolicyW+3 credits2GH. Gersbach
AbstractThis intermediate macroeconomics course focuses on topics in macroeconomics and monetary economics, like economic growth, financial markets and expectations, the goods market in an open economy, monetary policy, and fiscal policy.
ObjectiveStudents obtain a deeper understanding of some important macroeconomic issues.
ContentThis intermediate macroeconomics course focuses on topics in macroeconomics and monetary economics, like economic growth, financial markets and expectations, the goods market in an open economy, monetary policy, and fiscal policy.
Lecture notesCopies of the slides will be made available.
LiteratureChapters in
Manfred Gärtner (2009), Macroeconomics, Third Edition, Prentice Hall.
and selected chapters in other books and/or papers
Prerequisites / NoticeIt is required that participants have attended the lecture "Principles of Macroeconomics" (351-0565-00L).
363-0560-00LFinancial ManagementW+3 credits2VJ.‑P. Chardonnens
AbstractFinancial goals and reporting, profitability and efficiency, liquidity, cash planning, cash flow statement, financial statement analysis and planning, financing the business, equity and debt financing, cost of capital, capital structure decision, capital budgeting decision, corporate valuation, acquisition and financial restructuring.
Objective- Understand the principles of financial management
- Develop thinking in financial environment
- Master tools and methods of financial management
Content- Financial goals and reporting, value-based management
- Profitability and efficiency management
- Liquidity, working capital management, cash planning, cash flow statement
- Financial statement analysis and planning
- Financing the business, equity and debt financing
- Capital structure decision, financial leverage, cost of capital,
- Capital budgeting decision
- Corporate valuation, mergers and acquisitions
- Bankruptcy and financial restructuring
Prerequisites / NoticeRequirement : Knowledge of accounting (Accounting for Managers)
Electives
Recommended Electives
NumberTitleTypeECTSHoursLecturers
363-0404-00LIndustry and Competitive Analysis Restricted registration - show details
Recommended: MTEC students follow Strategic Management in parallel.
Experience in statistical analysis with tools such as SPSS or equivalents is an advantage.
W3 credits2GV. He
AbstractIndustry and Competitive Analysis (ICA) is a part of any strategy development. It contains a very practical set of methods to quickly obtain a good grasp of an industry. The purpose of ICA is to understand factors that impact on the financial performance of the industry, and as well the financial performance of firms within the industry.
ObjectiveStudents develop an understanding of how the structure of industries impact on firm and industry-level performance.
Students get familiar with, and obtain practical skills in analyzing industries and firms within them.
Students develop in-depth knowledge of one industry.
ContentIndustry and competitive analysis (ICA) is a part of any strategy development in firms and other organizations. It contains a very practical set of methods to quickly obtain a good grasp of an industry, be it pharmaceuticals, information and communication technology, aluminum, or even the beer industry. The purpose of ICA is to understand factors that impact on the performance of the industry, and as well the performance of firms within the industry. Firms in an industry can be categorized in so called “strategic groups” based on the strategies they are pursuing. Each strategic group is associated with a certain level of performance, and the firms' “membership” in such groups can be used to predict their moves within the industry. Moreover, managers use ICA to allocate resources, reach strategic goals such as market share or profitability, and help their firms improve their position within the industry.
LiteratureSession 1: Introduction to competitive strategy
Chapter 2 of Porter (2004)
Porter, M.E. 1996. What is strategy. Harvard Business Review. 74 (6): 61-78.

Session 2: Understanding industry analysis
Chapter 1 & 3 of Porter (2004)
Porter, M.E. 2008. The five competitive forces that shape strategy. Harvard Business Review. 86 (1): 78-93.

Session 3: Understanding strategic groups and firm membership
Chapter 7 of Porter (2004)
Short, J. C., David J. K., Timothy B. P., and Tomas M. H. 2007. Firm, strategic group, and industry influences on performance. Strategic Management Journal, 28: 147-167.

Session 4: Competitive intelligence
Chapter 4 of Porter (2004)
Reeves, M., Love, C., & Tillmanns, P. (2012). Your strategy needs a strategy. Harvard Business Review, 90(9), 76-83.

Session 5: Cluster analysis
Harrigan, K. R. (1985). An application of clustering for strategic group analysis. Strategic Management Journal, 6(1), 55-73.
Leask, G., & Parnell, J. A. (2005). Integrating strategic groups and the resource based perspective:: Understanding the Competitive Process. European Management Journal, 23(4), 458-470.

Session 6: Strategic position of the firm
Chapter 13 of Porter (2004)
Schoemaker, P. H., Krupp, S., & Howland, S. (2013). Strategic leadership: The essential skills. Harvard business review, 91(1), 131-134.
Prerequisites / NoticeDue to didactic reasons originating from the group-work based approach, the number of participants is limited to 30. First come first served by order of enrollment in myStudies. The exchange students may register by sending an e-mail to Link if they face any problems with registration to myStudies. The exchange students should send individual emails. E-mails that are sent before the starting date of registration to myStudies will not be accepted.

- There is no exam in this course. The students are graded on an industry report, and a mandatory presentation of the industry analysis to an expert panel. This presentation takes place during the last session of the course.

- Knowledge of SPSS or similar statistical packages is an advantage.

Note that class participation constitutes 20% of the final grades. Students should judge if full commitment can be made to attending the lectures before registration.
363-0408-00LAdvanced Marketing: Market-Driven Logistics Service Organizations
Does not take place this semester.
W3 credits2GS. Wagner
AbstractThis course builds on the understanding that market-driven organizations strive to increase customer value and familiarizes students with strategies and processes (capabilities) for creating value for customers of logistics service organizations.
ObjectiveStudents will be introduced to logistics and transportation services and will acquire skills and tools which are valuable for working with market-driven logistics service organizations.
ContentIn order to survive, firms must act on their customers’ needs and desires and satisfy them. This implies that firms can either follow their customers’ current needs or help shape them. Market-driven organizations have a superior ability to do so. They understand, attract and keep valuable customers and lead their needs in new directions by increasing the customer value proposition and improving business systems. Market-driven organizations have the discipline to make sound strategic choices and implement them consistently. This course builds on this understanding and investigates logistics services, transportation and carrier management from an industry, market and customer perspective. On the industry level, public policy issues related to transportation, as well as fundamental differences among the various transportation modes in terms of their service characteristics, market competition, basic cost structures, rate-making practices, etc. will be analyzed. On the market level, market mechanism and market forces will be discussed. On the customer level, strategies and processes of the shipper (i.e., the firm manufacturing products and serving the customer) and the carrier (i.e., the firm providing logistics services) will be discussed. Processes (capabilities) for creating customer value range from market sensing, customer-linking, sales management, and service development and improvement (innovation) to operational processes, financial management, and cost control.
Lecture notesWill be available for download from the homepage of the Chair of Logistics Management (Link).
LiteratureThe following textbook is recommended:
Coyle, John J./Novack, Robert A./Gibson, Brian/Bardi, Edward J. (2011): Transportation: A supply chain perspective, 7th ed., Mason, OH: South-Western Cengage Learning (ISBN: 032478919X).

The following textbooks are supplementary:
Day, George S. (1999): The market driven organization: Understanding, attracting, and keeping valuable customers, New York: The Free Press (ISBN: 0684864673).
Wagner, Stephan M. and Busse, Christian (eds.) (2008): Managing innovation: The new competitive edge for logistics service providers, Berne: Haupt (ISBN: 3258073406).
Birla, Madan (2005): FedEx delivers: How the world's leading shipping company keeps innovating and outperforming the competition, Hoboken, NJ: John Wiley & Sons (ISBN: 0471715794).

Additional readings that you might consult during the course and for the exam preparation will be provided for download.
Prerequisites / NoticeThe final course grade will be a weighted average of the following:

Written test (in class): 50%
Case/research paper write-ups: 25%
Group presentation: 25%

Class participation: Up to 10% extra credit.

The number of students is limited to 35. Preference will be given to students who have successfully completed the courses Introduction to Marketing and Strategic Supply Chain Management. Before registering, please contact Nikrouz Neshat (Link) to confirm eligibility and obtain permission.
363-0448-00LLOSII: Manufacturing Strategies - from Supply Chain Design to Factory PlanningW4 credits3GP. Schönsleben, M. Baertschi, R. Binkert
AbstractStudents who aim to work in globally operating companies achieve a theoretical fundament on strategic design options for facility locations in global value-added networks. Decision makers from globally active corporate groups familiarize you with the fascinating world from the design of sustainable supply chains to planning of most effective and efficient factories.
Objective- get a detailed on knowledge strategic design options for facility locations in global, sustainable value-added networks as well as of demand planning. You work on real-life case studies of companies, enhanced by specific talks of top managers of global players like Holcim or Daimler.

- experience the challenges of state-of-the-art factory planning by listening to and discussing with the responsible domain heads of companies like the Volkswagen Group or the Siemens group and by working on a real-life case study of a leading Swiss company.
ContentOwnership and Trade in a Supply Chain; Tariff-Orientation in a Supply Chain; Total Cost of Ownership; Sustainable Supply Chains; Facility Location Planning in Production, Distribution, and Service Networks; Demand and Demand Forecast; Mindset, Approaches, Methodologies and Techniques of Factory Planning, shown by means of actual projects.

The theory is enriched by industry representatives presenting practical case studies, which can be discussed with the corresponding experts from industry at first hand.
Lecture notesBook "Integral Logistics Management - Operations and Supply Chain Management Within and Across Companies",4th edtion, Auerbach Publications, 2011. Costs: 90.-

Powerpoint-Handouts and documents relating to the case studies can be downloaded from the interactive learning environment.

Sales at 19.2.14., 15:45, on the occasion of the first lecture.
Prerequisites / NoticeRequirements: Preferably the course in "Logistics, Operations, and Supply Chain Management I" (351-0442-00L).
363-0452-00LPurchasing and Supply ManagementW3 credits2GS. Wagner
AbstractBased on up to date purchasing and supplier management theories and practices, the course familiarizes students with the design and implementation of purchasing strategies, processes, structures and systems, as well as the structure and management of supplier portfolios and buyer-supplier relationships.
ObjectiveStudents will acquire skills and tools which are valuable for designing and implementing purchasing and supplier strategies.
ContentThe value sourced from suppliers and the innovation stemming from the supply base has increased substantially in recent years. As a consequence, suppliers and the purchasing function have become critically important for firms in many manufacturing and service industries. Purchasing and supply management is on the agenda of top-management today. This course will familiarize students with modern purchasing and supplier management theory and practice. They will learn how to design and implement purchasing strategies, processes, structures and systems, and how to structure and manage supplier portfolios and buyer-supplier relationships to meet firms’ supply needs.
Lecture notesWill be available for download from the homepage of the Chair of Logistics Management (Link).
LiteratureThe following textbook is recommended:
Cousins, Paul/Lamming, Richard/Lawson, Benn/Squire, Brian (2008): Strategic supply management: Principles, theories and practice, Harlow, UK: Financial Times Prentice Hall (ISBN: 0273651005).

The following textbooks are supplementary:
van Weele, Arjan J. (2010): Purchasing and supply chain management: Analysis, strategy, planning and practice, 5th ed., Florence, KY: Cengage Learning Services (ISBN: 1408018969).
Benton, W.C. (2010): Purchasing and supply chain management, 2nd ed., New York: McGraw-Hill (ISBN: 0073525146).
Prerequisites / NoticeThe final course grade will be a weighted average of the following:

Written test: 70%
Case studies (during the semester): 30%

Class participation: Up to 10% extra credit.
363-0454-00LSupply Chain Risks Restricted registration - show details
Does not take place this semester.
W3 credits2GS. Wagner
AbstractThis course provides a broad introduction to the timely topic of supply chain risk management. It covers organizational, strategic, and operational aspects of supply chain risks and their management.
ObjectiveStudents will acquire a broad and concise knowledge of supply chain management under conditions of risk that allows them to navigate through the vast sea of research in this field. They will learn and practice the skills and tools necessary to successfully designing robust and resilient supply chains.
ContentIn recent years, the implementation of various efficiency-seeking supply chain initiatives (e.g., outsourcing or lean production) has created conditions for supply chain disruptions to become more widespread and severe. Recent examples have demonstrated that the occurrence of such risky events can result in severe losses in shareholder value, sales, production, and reputation for the firms involved. This course offers a broad introduction to this timely topic. Starting with a discussion of key concepts (risk, disruptions, risk sources, vulnerability), students are exposed to current issues in the field of supply chain risk management. Among the topics we will discuss are the different types of supply chain risks, methods and frameworks of risk analysis and monitoring, as well as strategies for managing supply chains under conditions of risk. Industry applications and cases illustrate concepts and challenges.
Lecture notesWill be available for download from the homepage of the Chair of Logistics Management (Link).
LiteratureReadings that you might consult during the course and for the exam preparation will be provided for download.

The following books are supplementary:
Waters, Donald (2008): Supply chain risk management: Vulnerability and resilience in logistics, London, UK: Kogan Page (ISBN: 0749448547).
Wagner, Stephan M. and Bode, Christoph (eds.) (2009): Managing risk and security: The safeguard of long-term success for logistics service providers, Berne: Haupt (ISBN: 3258075239).
Prerequisites / NoticeThe final course grade will be a weighted average of the following:

Written test (in class): 60%
Case study write-ups: 30%
Case study presentation: 10%

Class participation: Up to 10% extra credit.
363-0514-00LEnergy Economics and PolicyW3 credits2GS. Datta, M. Filippini
AbstractAn introduction to principles of energy economics and applications using energy policies: demand analysis, economic analysis of energy investments and cost analysis, economics of fossil fuels, economics of electricity, economics of renewable energy, market failures and energy policy, market-based and non-market based instruments, demand side management and regulation of energy industries.
ObjectiveThe students will develop the understanding of economic principles and tools necessary to analyze energy issues and to formulate energy policy instruments. Emphasis will be put on empirical analysis of energy demand and supply, market failures, energy policy instruments, investments in power plants and in energy efficiency technologies and the reform of the electric power sector.
ContentThe course provides an introduction to energy economics principles and policy applications. The core topics are
-Demand analysis
-Economic analysis of energy investments and cost analysis
-Economics of fossil fuels
-Economics of electricity
-Economics of renewable energies
-Market failures and energy policy
-Market oriented and non-market oriented instruments
-Demand side management
-Regulation of energy industries
Literature- International Handbook on the Economics of Energy
by Joanne Evans (Editor), Lester C. Hunt (Editor)

- Energy Economics
Concepts, Issues, Markets and Governance
Bhattacharyya, Subhes C.
1st Edition, 2011, XXVI, 721 p. 267 illus, 83 in color.
363-0543-00LAgent-Based Modelling of Social Systems Information W3 credits2V + 1UF. Schweitzer, D. Garcia Becerra, N. Perony
AbstractAgent-based modelling is introduced as a bottom-up approach to understand the complex dynamics of social systems.
The course focuses on four different application areas, (I) opinion dynamics, (II) cooperation and competition, (III) spatial interaction, and (IV) online social networks. Emphasis is on formal modelling, quantitative analysis and computer simulation tools.
ObjectiveA successful participant of this course is able to
* understand the rationale of actor-centered models of social systems
* choose appropriate model classes to characterise social systems
* understand the relation between rules implemented at the individual level and the emerging behaviour at the global level
* grasp the influence of agent heterogeneity on the model output
* efficiently implement agent-based models using Python and visualise the output data
ContentAgent-based modelling provides a bottom-up approach to understand the complex dynamics of social systems. Agents have internal degrees of freedom (opinions, strategies), the ability to perceive, and to change, their environment, and to interact with other agents. Their (inter)actions result in collective dynamics with emergent properties that need to be analysed and understood quantitatively. As more, and more accurate, data about online and offline social systems become available, our formal understanding of these systems has to progress in the same manner. We focus on a parsimonious description of the agents' behaviour which relates individual interaction rules to the dynamics on the system's level and complements engineering and machine learning approaches to modelling.
The course focuses on four different application areas of agent-based models, (I) opinion dynamics, (II) cooperation and competition, (III) spatial interaction, and (IV) online social networks.
Whilst the lectures focus on the theoretical foundations of agent-based modelling, they are illustrated on a more practical level in weekly exercise classes. Using the Python programming language, the participants implement agent-based models in guided and autonomous projects, which they present and jointly discuss.
Lecture notesThe lecture slides will be available on the Moodle platform, for registered students only.
LiteratureSee handouts. Specific literature is provided for download, for registered students only.
Prerequisites / NoticeParticipants of the course should have some background in mathematics and a dedicated interest in formal modelling and computer simulations, and should be motivated to learn about social systems from a quantitative perspective.

Self-study tasks are provided as home work for small teams (3-5 members). Weekly exercises (45 min) are used to discuss the solutions, and guide the student. During the second half of the semester, teams have to complete a course project in which they will implement and discuss an agent-based model to characterise a system chosen jointly with the course organisers. This project will be evaluated, and its grade will count as 25% of the final grade.
363-0552-00LEconomic Growth and Resource UseW3 credits2GJ. Daubanes
AbstractThe lecture focuses on the economics of non-renewable resources and deals with the main economic issues regarding such commodities.
ObjectiveThe objective of the lecture is to make students familiar with the main topics in the economics of non-renewable natural resources so that they become able to autonomously read much of the academic literature on the issue. The economics of natural resources adds an intertemporal dimension to the classical static theory. The analyses provided in the lecture will use basic dynamic optimization tools; students are also expected to develop or consolidate their related technical skills.
ContentThe lecture focuses on the economics of non-renewable resources and deals with the main economic issues regarding such commodities. Two peculiarities of natural resources make them interesting economic objects. The intertemporal dimension of resource exploitation is absent in standard static treatments of classical economic theory. The non-renewability of natural resources further implies long-term supply limitations, unlike conventional goods that are indefinitely reproducible. Because of those peculiarities, many well-known economic results do not apply to the case of resources.

As it is appropriate in most chapters, priority will be given to a synthetic partial equilibrium setting. Elementary knowledge of microeconomics (like what is provided by H. Varian, Intermediate Microeconomics) is considered as a prerequisite. Moreover, an introduction to standard partial equilibrium analysis will be provided at the beginning of the lecture. General equilibrium effects should be introduced as they become crucial, as will be the case in the chapters on the interplay between economic growth and resource depletion.

The questions addressed in the lecture will be the following ones:
The intertemporal theory of non-renewable resource supply; the dynamic market equilibrium allocation; the exploration and development of exploitable reserves; the heterogenous quality of resource deposits; pollution and other externalities arising from the use of fossil fuels; the exercise of market power by resource suppliers and market structures; socially optimum extraction patterns and sustainability; the taxation of non-renewable resources; the international strategic dimension of resource taxation; the uncertainty about future reserves and market conditions; economic growth, resource limitations, and the innovation process...
Lecture notesLecture Notes of the course will be sent by email to officially subscribed students.
LiteratureThe main reference of the course is the set of lecture notes; students will also be encouraged to read some influential academic articles dealing with the issues under study.
Prerequisites / NoticeElementary knowledge of microeconomics (like what is provided by H. Varian, Intermediate Microeconomics) is considered as a prerequisite.
363-0558-00LStrategic and Cooperative Thinking
It is recommended to take 351-0503-00L Principles of Microeconomics first.
W3 credits2GV. Britz
AbstractNoncooperative and Cooperative Game Theory, concepts and applications
ObjectiveThe goal of the lecture is to learn how to think strategically or cooperatively and to apply the concepts
of game theory to economic, social, political and business situations.
ContentPart 1: Strategic Thinking (Noncooperative Game Theory)

Thinking in static and dynamic games with complete and incomplete information

Part 2: Cooperative Thinking (Cooperative Game Theory)

Thinking in repeated and cooperative games.
Lecture notesFor inquiries and questions regarding the course organization please send an email to Dr. Volker Britz (Link).
LiteratureDavis (1997): Game Theory: A Nontechnical Introduction. Courier Dover Publications
Dixit and Nalebuff (1991): Thinking Strategically. W.W. Norton & Company
Fudenberg and Tirole (1991): Game Theory. MIT Press
Gibbons (1992): Game Theory for applied economists. Princeton University Press
Mas-Collel et al. (1995): Microeconomic Theory. Oxford University Press
Myerson (1992): Game Theory: Analysis of Conflict. Havard University Press
Osborne (2003): An Introduction to Game Theory. Oxford University Press
Watson (2002): Strategy: An Introduction in Game Theory. W.W. Norton & Company
Prerequisites / NoticeThe lecture will be in English.
363-0564-00LEntrepreneurial RisksW3 credits2GD. Sornette
Abstract-General introduction to the different dimensions of risks with
emphasis on entrepreneurial, financial and social risks.

-Development of the concepts and tools to understand these risks,
control and master them.

-Decision making and risks; human cooperation and risks
ObjectiveWe live a in complex world with many nonlinear
negative and positive feedbacks. Entrepreneurship is one of
the leading human activity based on innovation to create
new wealth and new social developments. This course will
analyze the risks (upside and downside) associated with
entrepreneurship and more generally human activity
in the firms, in social networks and in society.
The goal is to present what we believe are the key concepts
and the quantitative tools to understand and manage risks.
An emphasis will be on large and extreme risks, known
to control many systems, and which require novel ways
of thinking and of managing. We will examine the questions
of (i) how much one can manage and control these risks,
(ii) how these actions may feedback positively or negatively
and (iii) how to foster human cooperation for the creation
of wealth and social well-being.

Depending on the number of students and of the interest, the exam
will consist in a project, one for each student or in small groups,
focused on the application of the concepts and tools developed in this
class to problems of practical use to the students in their varied fields.
The choice of the subjects will be jointly decided by the
students and the professor.
ContentThis content is not final and is subjected to change
and adaptation during the development of the course
in order to take into account feedbacks from the
students and participants to the course.

1- Risks in the firm and in entrepreneurship
-What is risk? The four levels.
-Conceptual and technical tools
-Introduction to three different concepts of probability
-Useful notions of probability theory
(Frequentist versus Bayesian approach,
the central limit theorem and its generalizations, extreme value theory)
-Where are the risks for firms? Downside and upside
-Diversification and market risks

2-The world of power law risks
-Stable laws
-power laws and beyond
-calculation tools
-scale invariance, fractal and multifractals
-mechanisms for power laws
-Examples in the corporate, financial and social worlds

3-Risks emerging from collective self-organization
-concept of bottom-up self-organization
-bifurcations, theory of catastrophes, phase transitions
-predictability
-the hierarchical approach to understanding self-organization

4-Measures of risks
-coherent and consistent measures of risks
-origin of risks
-dependence structure of risks
-measures of dependence and of extreme dependences
-introduction to copulas

5-Conceptual and mathematical models of risk processes
-self-excited point processes of economic and financial shocks
-agent-based models applied to collective emergent behavior
in organization of firms and societies and their risks

6-Endogenous versus exogenous origins of crises
-mild crises versus wild catastrophes: black swans and kings
-the dynamics of commercial sales
-the dynamics of Youtube views and internet downloads
-the dynamics of risks in the financial markets
-strategic management and extreme risks

7-Why do markets burst and crash?
-collective behavior, imitation and herding
-humans as social animals and consequence of risks
-bubbles and crashes in human affairs, innovation, new technologies

8-Limits of predictability, of control and of management
-the phenomenon of ``illusion of control''
-the world is a whole: irreducible risks from lack of diversification
-intrinsic limits of predictability
-the concept of pockets of predictability

9-Human-made risks
-political, financial, economics, natural risks
-elements on theories of decision making
-Human cooperation and its lack thereof, mechanisms and design
Lecture notesThe lecture notes will be distributed a the beginning of
each lecture.
LiteratureI will use elements taken from my books

-D. Sornette
Critical Phenomena in Natural Sciences,
Chaos, Fractals, Self-organization and Disorder: Concepts and Tools,
2nd ed. (Springer Series in Synergetics, Heidelberg, 2004)

-Y. Malevergne and D. Sornette
Extreme Financial Risks (From Dependence to Risk Management)
(Springer, Heidelberg, 2006).

-D. Sornette,
Why Stock Markets Crash
(Critical Events in Complex Financial Systems),
(Princeton University Press, 2003)

as well as from a variety of other sources, which will be
indicated to the students during each lecture.
Prerequisites / Notice-A deep curiosity and interest in asking questions and in attempting to
understand and manage the complexity of the corporate, financial
and social world

-quantitative skills in mathematical analysis and algebra
for the modeling part.
363-0584-00LInternational Monetary EconomicsW3 credits2VJ.‑E. Sturm
AbstractWhat determines the foreign exchange rate in the short- and long-term? What are the effects of monetary and fiscal policy in an open economy? What drives a country's choice of the foreign exchange rate regime and why are some countries more prone to financial crises than others? A number of simple theoretical frameworks will be developed that allow us to discuss recent economic policy issues.
ObjectiveThe core objective of the course is to develop simple macroeconomic models of open economies that can be usefully applied to international economic phenomena ranging from global financial imbalances, the Chinese exchange rate regime, the European Monetary Union, reform proposals for the international financial architecture, to global financial crises.
Lecture notesLecture notes will be made available via the KOF website.
LiteratureKrugman, Paul, Maurice Obstfeld and Marc Melitz (2011), International Economics: Theory and Policy, International Edition, 9th Edition, Addison-Wesley.
363-0586-00LInternational Economics: Theory of New Trade and Multinational FirmsW3 credits2VP. Egger, C. Moser
AbstractWe will then move to two-sector models developed by Helpman and Krugman.
ObjectiveThe primary goal of the course is to familiarize students with recent work in international economics. While traditional text books are largely concerned with models where production cost differences between countries (through differences in factor productivity or in relative factor endowments) are the main source of gains from trade, I will assume that students are familiar with these concepts and only briefly touch on them. The focus will be on models where the main reason for trade are consumer preferences and their love of variety and its major impediments are transport costs. Covering models of trade only, of trade and multinational firms, and of factor mobility and agglomeration, students will get a good overview of key contributions in international economics within the last quarter of a century.
LiteratureCopies of the original articles and relevant chapters of books will be made available to participants of the course.
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