BSAD 8480

 

EXECUTIVE MBA

APPLICATIONS IN ECONOMICS: TECHNOLOGY

 

Fall 2004

(last revised:  August 29, 2004)

 

 

Arthur Diamond

 

Office:  RH 512E

 

Office Phone:  (402) 554-3657

 

Office Hours:  12:50 - 2:00 PM Tues. & Thurs.; and by appointment.

 

Email address:  adiamond@mail.unomaha.edu

 

World Wide Web home page:  http://cba.unomaha.edu/faculty/adiamond/web/diahompg.htm

 

 

Course Objectives:

 

Economics consists of tools of analysis that have proven useful in explaining a wide variety of human behavior.  Roughly one third of the course aims to familiarize the student with those tools from price theory in general, and the theory of the firm in particular, that promise to be especially useful to the business manager in anticipating and affecting the economic situation of the firm.  Included in this part of the course will be:  the basic tools of supply and demand, the determinants of demand, and the general prospects for accurate economic forecasting.  Roughly the other two thirds of the course will focus on the main driver of economic growth, opportunities for profit, and risks due to a changing environment:  new technology, with a special emphasis on e-business.  One of the aims of this part of the course to see if we can reach useful generalizations about which new technologies and eBusiness models are likely to succeed and which are likely to fail.

 

 

Texts:

 

Economics custom McGraw-Hill Primis Online selection from:  Brickley, Smith & Zimmerman.  Managerial Economics and Organizational Architecture, 3rd ed., McGraw Hill, 2003.  [ISBN # 0-390-49026-1]

 

Christensen, Clayton M.  The Innovator's Dilemma:  The Revolutionary Book that Will Change the Way You Do Business.  New York:  NY:  Harper Books, 2000.  [ISBN # 0-06-662069-4] {paperback edition}

 

Christensen, Clayton M. and Michael E. Raynor.  The Innovator's Solution:  Creating and Sustaining Successful Growth.  Boston, MA:  Harvard Business School Press, 2003.  [ISBN # 1-57851-852-0]

 

Christensen, Clayton M., Scott D. Anthony, and Erik A. Roth.  Seeing What's Next:  Using Theories of Innovation to Predict Industry Change.  Boston, MA:  Harvard Business School Press; publication date:  Sept. 7, 2004.  [ISBN #  1591391857]

 

 

Summary of Readings Assignments:

 

Read Brickley, Smith and Zimmerman text, Chs. 1-7 (omit the appendices in Chs. 4 and 5).

 

Details:

 

Ch. 1:  pp. 1-8

Ch. 2:  pp. 12-19 (up to “Indifference Curves”); pp. 25 (from “Motivating Honesty at Merrill Lynch”) – 33 (up to “Decision Making under Uncertainty”)

Ch. 3:  pp. 41-67

Ch. 4:  pp. 71-90 [omit the appendix]

Ch. 5:  pp. 103-108 (up to “Choice of Inputs”); pp. 114 (from “Costs”) – 117 (up to “Short Run versus Long Run”); pp. 120 (from “Minimum Efficient Scale”) – 124 [omit the appendix]

Ch. 6:  pp. 133 – 147 (up to “Output Competition”); pp. 150 (from “Empirical Evidence”) – 153

Ch. 7:  pp. 171 (from “Price Discrimination—Heterogeneous Consumer Demands”) – 176 (up to “Bundling”)

 

 

Read Christensen, The Innovator’s Dilemma, read:  Introduction (pp. xi-xxxii); Ch. 1 up to appendix 1.1 (pp. 3-26).

 

Read Christensen, Clayton M. and Michael E. Raynor.  The Innovator's Solution, read:  whole book.

 

Read Christensen, Clayton M., Scott D. Anthony, and Erik A. Roth.  Seeing What's Next,  read:  Ch. 1 "The Signals of Change:  Where Are the Opportunities?", pp. 3-27; Ch. 7 "Whither Moore's Law?  The Future of Semiconductors", pp. 155-177; Conclusion, pp. 267-273.

 

 

 

Course Outline:

 

Some aspects of the schedule are tentative, depending on uncertain events (such as the timing of the publication of the third Christensen book).

 

 

 

Assignment to prepare for Session 1:

 

Read Brickley, Smith and Zimmerman text, Chs. 1-3.  [See “Summary of Reading Assignments” on p. 2 of this syllabus for pages assigned.]

 

Work on reading book you selected for your critical review.

 

 

 

Session 1—September 24:

 

Main topics:

 

·        Why technology matters.

 

·        What to expect from course.

 

·        Basic price theory:  supply and demand.

 

·        Elasticity.

 

·        Research tools in economics of technology and eBusiness; writing and presenting clearly.

 

·        Double Oral Auction experiment.

 

 

Assignment to prepare for Session 2:

 

Read Brickley, Smith and Zimmerman text, Chs. 4-7 (omit the appendices in Chs. 4 and 5).  [See “Summary of Reading Assignments” on p. 2 of this syllabus for pages assigned.]

 

[The Christensen books below, will not be discussed for a couple more sessions, but are “assigned” here, to clear time for other activities, like studying for the midterm, and preparing the papers/presentations.]

 

Read Christensen, The Innovator’s Dilemma, Introduction (pp. xi-xxxii); Ch. 1 up to appendix 1.1 (pp. 3-26).

 

As time permits, read Christensen, Clayton M. and Michael E. Raynor.  The Innovator's Solution, read:  whole book.

 

As time permits, read Christensen, Clayton M. et al.  Seeing What’s Next, read:  Ch. 1, Ch. 7, and Conclusion.

 

Continue reading book you selected for your critical review.

 

 

 

 

Session 2—October 8:

 

Main topics:

 

·        The goals of the firm.

 

·        Production and costs.

 

·        Pure competition model.

 

·        Economics as optimizing at the margin; implications for internal firm pricing; implications for management theories promoting "teams," "just‑in‑time," and "total quality management."

 

·        Standard account of monopoly.

 

·        Price discrimination.

 

·        In between competition and monopoly.

 

·        The standard account of monopolies vs. Schumpeter's process of "creative destruction."

 

·        Government regulation of firms.

 

·        The law of comparative advantage and international trade.

 

·        Economic analysis of "Buy the Big O First" campaign.

 

 

Assignment to prepare for Session 3:

 

Study for midterm.

 

 

 

Session 3—October 22:

 

Main topics:

 

·        2 hour midterm

 

·        Application of economics to International Experience projects.

 

·        Discussion of evidence and elaborations of Schumpeter.

o       Discussion of Creative Destruction.

o       Discussion of Only the Paranoid Survive.

 

·        Discussion of The Innovator’s Dilemma.

 

 

 

 

Assignment to prepare for Session 4:

 

Finish reading Christensen, Clayton M. and Michael E. Raynor.  The Innovator's Solution, read:  whole book.

 

Complete reading and writing for critical review.

 

Choose topic for second presentation/paper and email choice to Diamond.

 

 

 

Session 4— November 5:

 

Main topics:

 

·        Discussion of Christensen’s The Innovator’s Solution, incorporating critical review presentations of books relevant to Christensen.

 

·        Briefer discussion of Christensen’s Seeing What’s Next, emphasizing assigned chapters.  (This may be held over until session 5, if time is short.)

 

 

·        5 page critical reviews due.

 

·        Student 5 minute oral summaries of critical reviews.

 

 

Assignment to prepare for Session 5:

 

 

Work on research on Christensen case study paper/presentation.

 

 

 

Session 5— November 12:

 

Main topics:

 

·        Economic vs. mechanical forecasting.

 

  • The “New Economy”:  Historical Precedents.

 

·        Discussion of Business @ the Speed of Thought.

 

o       Does eBusiness Make the Market More Efficient:  Prices, Information, and Variety of Products.

 

o       Does eBusiness Make Firms More Efficient:  Marketing, Forecasting, Inventory/Production, Human Resources; Decentralization.

 

o       Does eBusiness Benefit the Worker, and the Small Firm?

 

·        Discussion of Telecosm.

 

o       The Economics of Infrastructure and Bandwidth.

 

·        Discussion of Information Rules.

 

o       Exploration and analysis of auction sites.

 

  • The “New Economy”:  Future Prospects and Recent Analyses.

 

 

·        15 minute quiz at end of class.

 

 

Assignment for Session 6:

 

Complete Christensen case-study 12 page paper and 10 minute presentation.

 

 

 

Session 6—December 3:

 

Main topics:

 

 

·        Christensen case-study 12 page paper due.

 

·        Christensen case-study 10 minute presentations.

 

·        Course evaluation.

 

 

 

 

 

Grades:

Grades will be based on: a midterm (30 points), an early 5 page critical review (35 points), a case study 12 page paper (70 points), an early 5 minute presentation (10 points), a later 10 minute presentation (15 points), and a 15 minute, multiple choice, quiz mainly on lecture material on economics of technology and eBusiness (10 points).  The total number of points in the course is 170.

 

The grading scale for the course will be no harsher than the following standard scale: 

 

Grade

Percents

Points

A+

97-100

165-170

A

93- 96

158-164

A-

90- 92

153-157

B+

87- 89

147-152

B

83- 86

141-146

B-

80- 82

136-140

C+

77- 79

130-135

C

73- 76

124-129

C-

70- 72

119-123

D+

67- 69

113-118

D

63- 66

107-112

D-

60- 62

102-106

F

59 or less

101 or less

 

 

Missing Tests or Deadlines:

          Handing in a paper late, or giving a presentation late, or getting a test done late, will result in a 10% penalty for up to three weeks late, 15% penalty for 3-5 weeks late, 20% penalty for 5-7 weeks late, etc.  With credible explanation, each student may be late in completing an assignment once during the semester (for up to three weeks), without accruing any penalty.

          Any student who misses more than two full class sessions, will be given an incomplete for the course and will need to take the course again the following year. 

 

 

Plagiarism:

          Copying the work of others without attribution is a form of intellectual theft known as plagiarism, and is a major offense among scholars (and other civilized people).

          Most clearly, any material that is directly quoted, should appear within quotation marks, if a sentence or less, or indicated with a ‘block indent’ if more than a sentence (which means that the whole quote is indented 5 spaces from the left edge of the text).  Failure to use either quotation marks, or block indent, with direct quotations will result in zero points for the assignment.

          When a source is used in the text, internal references should be given in the text that consist of a parenthetical mention of the author's last name, the date of the publication and a specific page number (if appropriate  For each brief parenthetical reference, a complete bibliographic reference should be provided in the Bibliography. 

 

 

Critical Review and Presentation:

Each student will write a five page critical review that summarizes and evaluates a book on the list circulated before class.  Most of the books on the list are ones that are praised as important and useful in Christensen and Raynor’s The Innovator’s Solution.  A few of the books are recent book on some intriguing topic in technology, eBusiness or innovation.  The student will also give a five minute oral PowerPoint presentation of the critical review.  The written critical review, and associated PowerPoint slides, should be submitted in paper form and also in digital form in Diamond’s digital drop box in Blackboard.  Please name the file with an abbreviated title of your book.  The review, with due attribution to you as the author, will be posted either to Blackboard or to Diamond’s web site (or both) for future students to read and study.

 The review should summarize the substantive content of the book, stating the main themes or theses in each major section.  The review should state the intended audience for the book, the clarity of the writing style, and the accuracy and usefulness of the information and analysis in the book.  The first PowerPoint slide for the presentation should include the presenter’s name, the date of presentation, the book authors, and book title.

 

 

Christensen Case-Study Paper and Presentation:

            Each student will select a case of a company that participated in a successful disruptive innovation.  The source of such cases is the list on pages 56-65.  Disruptions that focus on one company should be selected, in order to make the assignment manageable.  The paper should be submitted in paper form and also in digital form in Diamond’s digital drop box in Blackboard.  The short paper, with due attribution to you as the author, will be posted either to Blackboard or to Diamond’s web site (or both) for future students to read and study.

The fundamental question to be focused on, in each case, is how well the case supports the claims made in the Christensen and Raynor book about how a firm can best manage a disruptive innovation.  For example, some of the main questions answered, would usually be:

 

1.      Was the firm patient for growth, but impatient for profits?

2.      Did the firm pursue emergent strategy when appropriate, and deliberate strategy when appropriate?

3.      Did the firm as what “job” the product was going to do for the customer?

4.      Was the CEO, and other lead management, picked more for having the “right stuff” or for having gone through the right preparatory experiences?

5.      Was there any incumbent firm for which the innovation could have been a sustaining innovation?

 

 

 

Sample Form for Bibliographic References for the 12-Page Paper

The following sample bibliography is intended to illustrate the required reference format for several different kinds of publications.  The last entry is for a web resource, and gives an example where a lot of information is available---you may not always be able to provide quite as much detail, but should provide what you can.  (The last entry is adapted from:  http://www.lib.ohio-state.edu/guides/chicagogd.html)

 

Ackermann, Robert John. Data, Instruments and Theory. Princeton, N.J.: Princeton University Press, 1985.

 

Acs, Zoltan J., David B. Audretsch and Maryann P. Feldman. "Real Effects of Academic Research: Comment." The American Economic Review 82, no. 1 (March 1992): 363-367.

 

Adams, James D. "Fundamental Stocks of Knowledge and Productivity Growth." Journal of Political Economy 98, no. 4 (August 1990): 673-702.

 

Alchian, Armen A. "Private Property and the Relative Cost of Tenure." In Economic Forces at Work. Indianapolis: Liberty Press, 1977 (essay originally published in 1958).

 

American Chemical Society. Directory of Graduate Research l989. Washington, D.C.: American Chemical Society, 1989.

 

Becker, William E., Jr. "Maintaining Faculty Vitality through Collective Bargaining."  In Shirley M. Clark and Darrell R. Lewis, eds. Faculty Vitality and Institutional Productivity: Critical Perspectives for Higher Education. New York: Columbia University, Teachers College Press, 1985, pp. 198-223.

 

Davis, Elizabeth. "Compensation Gains of Faculty Unions and the Unemployment Effect of Extending Unemployment Insurance Coverage." (PhD Dissertation, University of Michigan, 1988).

 

Diamond, Arthur M., Jr. "Age and the Acceptance of Cliometrics." The Journal of Economic History 40, no. 4 (December 1980): 838-841.

 

"The Career Consequences of Accepting a Scientific Mistake." working paper, 1992.

 

Friedman, Milton. "An Open Letter for Grants." Newsweek (May 18, 1981): 99.

 

Garfield, Eugene, (chairman).  Science Citation Index.  Philadelphia: Institute for Scientific Information, Inc., 1961-present.

 

Lucas, Robert E., Jr.  "Incentives for Ideas."  New York Times  (April 13, 1981): 23.

 

Moore, Rich. "Compaq Computer: COMPAQ Joins the Fortune 500 Faster Than Any Company in History." In Businesswire [database online].  San Francisco: Business Wire. 1986-[updated 9 April 1986: cited 10 March 1990]. Accession no.  000782:  NO=BW420.  5 screens.  Available from DIALOG Information Services, Inc., Palt Alto, Calif.

 

 

 

 

Instructions for Writing

(Applies Both to Critical Review of Book, and to Christensen Case-Study 12-Page Paper)

 

The analysis should be written to be understandable by the CEO of an average, middle‑sized firm.  That means you should assume that you are writing for someone who is intelligent, interested, and short on time.

The body of the critical review should be three to five pages, not counting the title page.  A bibliography should be included that gives a full citation for the book reviewed.  (Meaning:  authors, full title, city of publication, publisher, and year of publication.)  No other sources need be used for the critical review, but if they are, the sources should be included in the bibliography.

The body of the paper (not including title page and bibliography) should be seven pages in length.  Each page in the body of the paper should be consecutively numbered.  All pages of both the critical review and the short paper should be double spaced, with a 12 point font size.  Margins should be an inch and a half all around, to accommodate the instructor’s poor handwriting.  Please do not put your paper in a special binder that would limit the space for my comments.  Instead, staple or clip it together.

            Endnotes should be used only if really necessary.  When a source is used in the text, internal references should be given in the text that consist of a parenthetical mention of the author's last name, the date of the publication and a specific page number (if appropriate).  Copying the work of others without attribution is a form of intellectual theft known as plagiarism, and is a major offense among scholars (and other civilized people).  For each brief parenthetical reference, a complete bibliographic reference should be provided in the Bibliography.  For bibliography form, use the sample bibliography, provided later in this syllabus.  For issues not covered in the sample bibliography, use style form A as discussed in The Chicago Manual of Style (e.g., see section 16.5 in the 13th edition).  Before you turn in your final draft, be sure to submit it to a spell‑checking program (available with all major word‑processing programs).

As you work on the text of your critical review or paper, be sure to periodically backup your latest draft onto a floppy disk.  Also be sure to keep a clean copy of your paper for your files‑‑the copy you turn in to me will be marked‑up in red ink.

 

 

Some Core Price Theory Competencies that You

Should Have from the Course:

            The following list highlights some core competencies that you should master during the first third of the course.  You can reasonably expect that several of these competencies will be tested in some form on the midterm exam.  Other material from the first two sessions of the course may also appear on the midterm.  But mastering all of these competencies would take you a long way in preparing successfully for the midterm.

 

1.      Know the central message of Hayek’s “The Use of Knowledge in Society” and its implications for the relative merits of the market and central planning, as methods of allocating resources.

2.      Know the most common types of elasticities of supply and demand, and how to interpret them.

3.      Know the main determinants of differences in the magnitude of price elasticity of demand.

4.      Know how the value of elasticity varies along a demand curve.

5.      Know how price changes effect total revenue when the demand is elastic and when it is inelastic.

6.      Know how to use a supply and demand curve graph to do basic comparative statics analysis.

7.      Know the implications of the Double Oral Auction experiment for demand theory.

8.      Know how to interpret the standard graphical analysis of the optimal quantity, price, and profit level for firms under pure competition and under monopoly.

9.      Know the likely impact of government price floors and price ceilings.

10.  Know the meaning of “opportunity cost.”

11.  Know how to identify the point of diminishing returns on a graph of the firm’s output curve (as a function of an input).

12.  Know the four basic conditions that define perfect competition.

13.  Know what price discrimination is, and what the conditions are for it to be feasible and profitable.

14.  Know the difference between the long-run equilibrium of a monopolistically competitive industry with the long-equilibrium of a perfectly competitive and a monopolistic industry.

15.  Know what a natural monopoly is.

16.  Know how the prisoner’s dilemma game is useful in analyzing the behavior of cartels.

17.  Know the meaning of the “capture” theory of regulatory agencies.

18.  Know how Schumpeter’s account of monopoly differs from the standard account.

19.  Know the significance of the Standard Oil and Brown Shoe cases, including why the courts reached decisions against each company.

20.  Know the meaning of the “law of comparative advantage.”

 


Recommended Supplementary Readings and

Some Sources Mentioned in Lectures:

 

 

Armentano, D.T.  The Myths of Antitrust.  New Rochelle, N.Y.:  Arlington House, 1972.

 

Baily, Martin Neil.  “Distinguished Lecture on Economics in Government:  The New Economy:  Post Mortem or Second Wind?” Journal of Economic Perspectives 16, no. 2 (Fall 2000): 23-48. 

 

Bettmann, Otto L.  The Good Old Days-They Were Terrible!  New York:  Random House, Inc., 1974.

 

Boorstin, Daniel J.  “An Odd Couple:  Discoverers and Inventors, Ch. 3 in Cleopatra’s Nose:  Essays on the Unexpected.  New York:  Random House, 1994.

 

Bork, Robert H.  The Antitrust Paradox:  A Policy at War With Itself.  Free Press,  1993.

 

Bresnahan, Timothy F., Erik Brynjolfsson, and Lorin M. Hitt.  “Information Technology, Workplace Organizational and the Demand for Skilled Labor:  Firm-level Evidence.” Quarterly Journal of Economics 117 (Feb. 2002):  339-376.  (Earlier draft downloadable at:  http://ecommerce.mit.edu/erik/ITW-final.pdf)

 

Brown, Jeffrey R. and Austan Goolsbee.  “Does the Internet Make Markets More Competitive?  Evidence from the Life Insurance Industry.” Journal of Political Economy 110, no. 3 (June 2002):  481-507.

 

Brynjolfsson, Erik, A. Renshaw and Marshall Van Alstyne. “The Matrix of Change:  A Tool for Business Process Reengineering.”  Sloan Management Review  (Winter 1997):  37-54.

 

Brynjolfsson, Erik and Lorin M. Hitt.  “Beyond Computation:  Information Technology, Organizational Transformation and Business Performance.” Journal of Economic Perspectives 14, no. 4 (Fall 2000): 23-48. 

 

Brynjolfsson, Erik and Michael D. Smith.  “Frictionless Commerce?   A Comparison of Internet and Conventional Retailers.”  Management Science 46, no. 4 (April 2000):  563-585.   (Earlier draft downloadable at:  http://ecommerce.mit.edu/papers/friction/friction.pdf)

 

Brynjolfsson, Erik, Thomas W. Malone, Vijay Gurbaxani, and Ajit Kambil.  "An Empirical Analysis of the Relationship Between Information Technology and Firm Size.”  Management Science 40, 12 (1994) (Earlier draft downloadable at:   http://ccs.mit.edu/papers/CCSWP123/CCSWP123.html)

 

Buchanan, James M. and Yong J. Yoon, eds.  The Return to Increasing Returns.  Ann Arbor:  The University of Michigan Press, 1994.

 

Carroll, Paul.  Big Blues:  The Unmaking of IBM.  New York, NY: Crown Trade Paperbacks, 1994.

 

Chernow, Ron.  Titan:  the Life of John D. Rockefeller, Sr.  New York:  Random House, Inc., 1998.

 

Christensen, Clayton M., and Michael E. Raynor.  Innovator’s Solution:  Creating and Sustaining Successful Growth.  Harvard Business School Press, 2003.  [ISBN:  1578518520].

 

Christensen, Clayton M., Scott D. Anthony and Erik A. Roth.  “Innovation in the Telecommunications Industry:  Separating Hype from Reality.”  Oct. 2001 working paper.

 

Collins, James C. and Jerry I. Porras.  Built to Last:  Successful Habits of Visionary Companies.  New York:  HarperBusiness, 1994.

 

Crandall, B.C., ed.  Nanotechnology:  Molecular Speculations on Global Abundance.  Cambridge, Massachusetts: The MIT Press, 1996.

 

Darnton, Robert.  George Washington's False Teeth:  An Unconventional Guide to the Eighteenth Century.  W.W. Norton & Company, 2003.  [ISBN:  0393057607]

 

Darnton, Robert.  "George Washington's False Teeth." New York Review of Books, 44, no. 5· (March 27, 1997):  p. 34ff.

 

David, Paul A., "The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox." American Economic Review 80, no. 2 (May 1990):  355-361.

 

DeLong, J. Bradford.  Montreal New Economy Conference:  After Dinner Remarks:  A Historical Perspective on the New Economy.”  (Downloadable from DeLong’s Berkeley web site:  http://econ161.berkeley.edu/TotW/Montreal_June_2001.html)

 

DeLong, J. Bradford and A. Michael Froomkin.  “Speculative Microeconomics for Tomorrow’s Economy.”  (Downloadable from DeLong’s Berkeley web site:  http://econ161.berkeley.edu/OpEd/virtual/technet/spmicro.html)

 

DeLong, J. Bradford and Lawrence H. Summers.  “The “New Economy”:  Background, Questions and Speculations.”  Presented at the Jackson Hole Conference of the Kansas City Federal Reserve Bank, August 2001.

 

Foster, Richard and Sarah Kaplan.  Creative Destruction:  Why Companies that Are Built to Last Underperform the Market---and How to Successfully Transform Them.  Currency Books, 2001. [ISBN # 0385501331],

 

Gates, Bill.  Business @ the Speed of Thought.  New York:  Warner Books, 2000.  [ISBN # 0446675962] {paperback edition}

 

_____.  Ch. 8:  “Friction-Free Capitalism.” in The Road Ahead.  New York:  Viking, 1995.  (HF5548.32.G38 1999)

 

Gilder, George.  Telecosm:  The World After Bandwidth Abundance.  Touchstone Books, 2002. {paperback edition} [ISBN # 0743205472]

 

Gordon, Robert J.  “Does the ‘New Economy’ Measure Up to the Great Inventions of the Past?”  Journal of Economic Perspectives 14, no. 4 (Fall 2000):  49-74.

 

Grove, Andrew S.  Only the Paranoid Survive:  How to Exploit the Crisis Points that Challenge Every Company.  Bantam Books, 1999.  [ISBN # 0385483821] {paperback edition} {Warren Buffett says this is a great book.)

 

Hall, Robert.  Ch. 1 in:  Digital Dealing:  How e-Markets are Transforming the Economy.  New York:  W.W. Norton & Co., 2001. 

 

Hall, Robert.  "e-Capital:  The Link between the Labor Market and the Stock Market in the 1990s."  Brookings Papers on Economic Activity, 2000, Vol. 2:  73-118.

 

Hall, Robert.  "Struggling to Understand the Stock Market."  American Economic Review 91 (May 2001):  1-11. (Earlier version downloadable from his web site at:  http://www.stanford.edu/~rehall/)  [Read most of the paper lightly, but read carefully the sections that mention Yahoo and eBay.]

 

Hippel, Eric von.  The Sources of Innovation. New York: Oxford University Press, 1988.

 

Kritzman, Mark.  "What Practitioners Need to Know About Regressions."  Financial Analysts Journal 47, no. 3 (May-June 1991): 12-15.

 

Landes, David S.  The Wealth and Poverty of Nations. New York, N.Y.: W.W. Norton & Company, 1998.

 

Liebowitz, Stanley J. and Stephen Margolis.  “Network Externality:  An Uncommon Tragedy.”  Journal of Economic Perspectives 8, no. 2 (Spring 1994):  133-150.

 

Mansfield, Edwin.  Technological Change. New York: W.W. Norton & Co., 1971.

 

McCloskey, Donald.  "Economical Writing."  Economic Inquiry 23 (April 1985):  187-222.  (HB21.W43)

 

Mokyr, Joel.  The Lever of Riches: Technological Creativity and Economic Progress. New York: Oxford University Press, 1990.

 

Mowery, David C. and Nathan Rosenberg.  Technology and the Pursuit of Economic Growth. New York: Cambridge University Press, 1989.

 

Nordhaus, William D.  "Do Real-Output and Real-Wage Measures Capture Reality? The History of Light Suggests Not.”  In Robert J. Gordon and Timothy F. Bresnahan, eds.,  The Economics of New Goods.  Chicago:  University of Chicago Press for National Bureau of Economic Research, 1997, pp. 29-66.

 

Packard, David.  The HP Way:  How Bill Hewlett and I Built Our Company.  New York:  HarperBusiness, 1995.

 

Passell, Peter.  "Wine Equation Puts some Noses Out of Joint."  The New York Times (March 4, 1990): 1.

 

Peters, Thomas J. and Robert H. Waterman, Jr.  In Search of Excellence:  Lessons from America's Best-Run Companies.  New York:  Harper & Row, Publishers, 1982.

 

Rich, Ben R. and Leo Janos.  Skunk Works:  A Personal Memoir of My Years at Lockheed.  Boston:  Little, Brown and Company, 1994.

 

Robinson, Peter.  "Paul Romer.”  Forbes. (June 5, 1995): 66-72.

 

Rosenberg, Nathan.  Exploring the Black Box. Cambridge: Cambridge University Press, 1994.

 

Rosenberg, Nathan.  Inside the Black Box:  Technology and Economics. Cambridge: Cambridge University Press, 1982.

 

Ross, Jeanne.  "E-Business at Delta Air Lines:  Extracting Value from a Multi-Faceted Approach."  MIT Sloan School of Management, Center for Information Systems Research, Working Paper, No. 317 (August 2001).

 

Schumpeter, Joseph.  Selected passages from:  Capitalism, Socialism and Democracy.  Harper-Collins, 1984.

 

Trajtenberg, Manuel.  Economic Analysis of Product Innovation: The Case of CT Scanners.  Cambridge, Massachusetts: Harvard University Press, 1990.

 

Tufte, Edward R.  The Visual Display of Quantitative Information.  Cheshire, Conn.:  Graphics Press, 1983, pp. 13-15, 53-54, 93-96, 107-110.

 

Scherer, F. M.  Innovation and Growth:  Schumpeterian Perspectives.  Cambridge, Massachusetts:  The MIT Press, 1986.

 

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