V Information and Regulatory Economics

SVKM’s Narsee Monjee Institute of Management Studies
Name of School -SCHOOL OF BUSINESS MANAGEMENT
Program: FT MBA Trimester :V
Course/Module : Information and Regulatory Economics Module Code:
Teaching Scheme Evaluation Scheme

Practica
Term End
l Tutorial Internal Continuous
Lecture Examinations (TEE)
(Hours (Hours Credit Assessment (ICA)
(Session) (Marks- __40_____
per per week) (Marks - __60____ )
in Question Paper)
week)
2.67 (2 3.0 Marks Scaled to Marks Scaled to
sessions _60___ __40__
Per
week)
Pre-requisite: Microeconomics, Macroeconomics, International Economics

Objectives: Business organizations today deal with an ever changing environment due to
uncertainty, technological changes and evolving regulatory environment in India and across
the globe. This course focuses specifically on issues of consumer and firm behavior under
uncertainty, information asymmetry, and regulatory changes. The course also introduces
students to two-sided markets, which are increasingly common today due to the proliferation
of internet and e-commerce.
Outcomes:
After completion of the course, students would be able to :

a) Analyse uncertain situations and apply techniques of expected utility theory and
other behavioural theories to managerial decision making.
b) Understand and analyse instances of asymmetric information in various business
situations, and make managerial decisions in those situations.
c) Understand the antitrust regulatory environment facing a company in India and
some other important foreign jurisdictions, and how to make decisions in compliance
with such scenarios.
d) Analyse pricing and market expansion strategies in two-sided markets.
Detailed Syllabus: ( per session plan )
Unit Description Session
1 Decision Making Under Uncertainty – Expected Utility Theory, its 1

assumptions and its applications
2 Violations of the Expected Utility Theory: Allais Paradox, Ellsburg Paradox, 1

and other experimental violations (anchoring, framing, heuristic biases etc.)
3 Theories on decision making under uncertainty outside of expected utility 1

theory: Prospect theory, mental accounting, loss-aversion
4 Applications of behavioral economics in managerial decisions 1
5 Nudges, choice architecture and applications of behavioral economics in 1

public policy
6 Information Asymmetry: Adverse Selection Problems – the market for 1
lemons
7 Information Asymmetry: Moral Hazard – applications in banking 1
8 Information Asymmetry: Signaling – applications in finance, marketing and 1

HR
9 Information Asymmetry: Agency Theory and Principal Agent Problems 1
10 Information Asymmetry: Incentive design and application in regulation; 1

banking, real estate etc. in India
11 Economics of Regulation: Public Interest and Regulatory Capture Theory; 1
Regulation and Deregulation, Airlines, Telecommunications, Banking
12 Economics of Regulation: Different regulatory agencies in India: RBI, SEBI, 1
IRDA in financial markets, Competition Commission of India (CCI) for
antitrust and mergers, Drug Controller General of India (DGCI) for
medicines, RERA, IBC
13 Economics of Regulation: Antitrust: Economic and Legal Framework; DOJ 1
and EC in USA and EU, and comparison with CCI in India.
14 Economics of Regulation: MNCs doing business in India 1
15 Two-sided markets: Theory of two-sided markets; newspaper advertising, 1

gaming, credit cards, internet commerce
16 Two-sided markets: Issues of pricing, design of platforms, and rules and 1
regulations
17 Two-sided markets in practice: Uber/Ola in India, Airbnb, 1
Amazon/Flipkart, Visa/MC, Matchmakers
18 Two-sided markets in practice: M-pesa and the possibility of social good 1
19 Two-sided markets: Regulations and antitrust issues in two-sided markets; 1
20 Student presentations of their projects on two-sided markets business ideas 1
Total 20
Text Books:
1. NA, a detailed reading list consisting of articles and excerpts from various books will be provided.
Reference Books:
1. Snyder and Nicholson, Microeconomic Theory – Basic Principles and Extensions, 11 th edition
(Cengage)
2. Baumol and Blinder, Microeconomics, Theory and Applications, Third Edition
3. Church, Jeffrey R. and Roger Ware, “Industrial Organization: A Strategic Approach,” Irwin McGraw-
Hill, ISBN 0-256-20571-X (electronic copy available)
4. Matchmakers: The New Economics of Multisided Platforms, Evans and Schmalensee
5. Nudge, Thaler and Sunstein
6. Thinking fast and slow, Kahneman
7. Other readings mentioned in text, and websites of CCI, RBI, SEBI etc.
Any other information : Our Pedagogy: lectures, class discussion, reading newspaper articles,
case lets and class activity.
Total Marks of Internal Continuous Assessment (ICA) : ____60_______ Marks
Distribution of ICA Marks :
Description of ICA Marks

Group Presentation 20
Group Project 30
Class Performance 10
Total Marks : 60
_________ ____________
Signature Signature
(Prepared by Concerned Faculty/HOD) (Approved by Dean)

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SVKM’s Narsee Monjee Institute of Management Studies

Name of School -SCHOOL OF BUSINESS MANAGEMENT

Program: FT MBA Trimester :V

Course/Module : Information and Regulatory Economics Module Code:

Teaching Scheme Evaluation Scheme

Pre-requisite: Microeconomics, Macroeconomics, International Economics

After completion of the course, students would be able to :

Detailed Syllabus: ( per session plan )

Unit Description Session

1 Decision Making Under Uncertainty – Expected Utility Theory, its 1

2 Violations of the Expected Utility Theory: Allais Paradox, Ellsburg Paradox, 1

Name of School -SCHOOL OF BUSINESS MANAGEMENT

3 Theories on decision making under uncertainty outside of expected utility 1

5 Nudges, choice architecture and applications of behavioral economics in 1

8 Information Asymmetry: Signaling – applications in finance, marketing and 1

10 Information Asymmetry: Incentive design and application in regulation; 1

15 Two-sided markets: Theory of two-sided markets; newspaper advertising, 1

19 Two-sided markets: Regulations and antitrust issues in two-sided markets; 1

20 Student presentations of their projects on two-sided markets business ideas 1

Name of School -SCHOOL OF BUSINESS MANAGEMENT

2. Baumol and Blinder, Microeconomics, Theory and Applications, Third Edition

4. Matchmakers: The New Economics of Multisided Platforms, Evans and Schmalensee

5. Nudge, Thaler and Sunstein

6. Thinking fast and slow, Kahneman

Total Marks of Internal Continuous Assessment (ICA) : ____60_______ Marks

Distribution of ICA Marks :

Description of ICA Marks

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Total Marks of Internal Continuous Assessment (ICA) : 60___ Marks