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Cornell University    
 
    
 
  Nov 23, 2017
 
Courses of Study 2017-2018
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AEM 6580 - The Economics and Psychology of Sustainable Business


(CU-SBY)     
Fall. 3 credits. Letter grades only.

Prerequisite: graduate students must have taken AEM 6510 . No prerequisite for MBA students. Co-meets with AEM 4580 .

W. Schulze.

An exploration of both opportunities and pitfalls of sustainable business using tools from both psychology and economics that are combined in the field of behavioral economics. The course will address the following questions: In a regulatory economy, with complex environmental law and technology, how can managers prevent costly environmental penalties, damage to the company reputation, and lawsuits? When if, and how can firms make money by going green? Can firms save money by reducing pollution? Will consumers pay for green? What business strategies have resulted in success and what strategies in failure? For example, has consumer suspicion of “green-washing” backfired on companies selling green? Answering these questions requires knowledge of law, economics, and psychology. Graduate students will be assigned additional reading and prepare two papers.



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