ECO356  examines the intersection of business and government in market economies.  Firms generally operate in an environment where market conditions such as demand, taste and technology govern decisions regarding products, prices, location, research and service.  In many cases, however, non-market conditions affect or even dominate these decisions.  To succeed, firms must understand how and why governments intervene in markets, the structure of these interactions, and their likely effects on demand, supply, and the nature of competition. 

The primary objective of this course is to understand the nature of government involvement in the free market.  The course will begin with a theoretical discussion of how markets operate and conditions under which they might be expected to lead to inadequate outcomes.  The focus will then shift to study particular areas of regulation and affected industries, with case studies such as file sharing and Napster, carbon trading to reduce global warming, and financial regulation.  The final part of the course will examine business interaction with the political environment more broadly, including lobbying and corporate social responsibility.