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OSU ECON 199 - ECON 199 SYLLABUS

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Oregon State UniversityDepartment of EconomicsEcon 199: The Economics of the U.S. Brewing Industry Winter 2006Instructor: Professor V. Tremblay Time & Class Location: M&W, 2:00-2:50 pm, Ballard Hall 118Office & Office Hours: Ballard Hall 319A; Mon 3:00-4:00 pm; Fri 2-4 pmEmail: [email protected] Web Page: http://oregonstate.edu/~tremblav/Teaching Assistant: Yasushi Kudo, [email protected]: Principles of Microeconomics (Econ 201)Textbooks:Required Text: [T&T] Tremblay and Tremblay, The U.S. Brewing Industry:Data and Economic Analysis, MIT Press, 2005. ISBN: 0-262-20151-8 Note that author proceeds will be donated to the undergraduate economics program.Reference Text: [F&B] Frank and Bernanke, Principles of Microeconomics, Irwin, 2004. ISBN: 0-07-255409.Course Description (2 credits): This course analyzes basic demand and cost conditions, the structure of the macro and micro sectors of the industry, strategic interactions among brewers, and important policy issues relevant to the U.S. brewing industry. The course will focus on the 1950-2002 time period, but current events will also be discussed. Course Objectives and Student Learning Outcomes: Students will learn and demonstrate knowledge of key demand, cost, structure, behavior, and performance issues related to the U.S. brewing industry. Students will also demonstrate mastery of microeconomic principles as they relate to the industry. Grading: Your course grade will be based on class participation and your performance on examinations and a term paper. Please note that there is no extra credit and the final examination is comprehensive. The weights are as follows:Test 1 30% Wednesday of Week 4.Term Paper 30% Due Wednesday of Week 8.Class Participation 10% Note that there are no wrong answers in class, only on exams and the term paper.Final Exam 30% please check date/time in the schedule of classesUniversity Guidelines: The university requires that I inform you of the following. (1) Academic Dishonesty: Plagiarism, fabrication, cheating, and facilitating academic dishonesty of others are serious offenses and may be punished by failure on the exam or project, failure in the course, and/or expulsion from the university. For further information refer to the Schedule of Classes and http://osu.orst.edu/admin/stucon/plag.htm. (2) Disruptive Behavior: Behaviors that are disruptive to teaching or learning will not be tolerated and will be referred to the Student Conduct Program for disciplinary action. Behaviors that create a hostile, offensive or intimidating environment based on gender, race, ethnicity, color, religion, age, disability, marital status or sexual orientation will be referred to the Affirmative Action Office. (3) Disabilities: If you have a documented disability which requires special arrangements, please inform me the first week of classes. To obtain university documentation foryour disability, contact Services for Students with Disabilities at 541-737-4098 or [email protected] and Course Outline:(*Optional/Review Readings)1. Introduction[T&T] Chapter 12. Demand and Cost Conditions in BrewingA. Demand Theory*[F&B] Chapter 5B. Cost Theory*[F&B] Chapter 6C. Demand and Costs in Brewing[T&T] Chapter 23. Market Structure in BrewingA. Theory of Market Structure*[F&B] Chapter 9B. Brewing Market Structure[T&T] Chapter 34. Import and Domestic Specialty Sectors of the Market [T&T] Chapter 55. Games Brewers Play:A. IntroductionTremblay and Tremblay, “Brewing: Games Firms Play,” Chapter 3 in Tremblay and Tremblay, editors, Industry and Firm Studies, M.E. Sharpe, forthcoming. B. Product and Brand Proliferation[T&T] Chapter 6C. Price, Advertising, Merger, and Other Strategies[T&T] Chapter 76. Economic Performance in Brewing[T&T] Chapter 87. Policy Issues Relevant to Alcohol Markets[T&T] Chapter 9Term Papers: Please write a short term paper (4-8 pages, double spaced) on one topic listed below. Please inform the instructor of your choice by the end of week 2.1. In 1996, the distilled spirits industry rescinded its voluntary ban on broadcast advertising. Please summarize this event and discuss (1) how it has affected advertising of distilled spirits and (2) the response of the beer companies.2. In the last several years, spirits producers have gained share from the beer companies. (1) Explain why this has happened and if this is a short-run or a long-run concern for beer companies. (2) How do you think beer companies should respond?3. Pick a topic of your choice that relates to the economics of the brewing industry. Please get instructor permission before choosing this


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