AEM 3310 - Introduction to Business Regulation

Fall. 3 credits. Letter grades only (no audit).

Prerequisite: ECON 1110 or AEM 2200, or equivalent.

R. Karpman.

The purpose of this course is to help and guide business and policy students in understanding and recognizing the multiple motivations of society to control certain business activities, the several general approaches to regulation and what is understood of the outcomes, and to provide an appreciation through case studies of how different sectors manage in a regulated environment. The treatment is to include an evaluation of the concept of ‘regulatory risk’, the uncertainly about regulatory outcomes/changes which constitute a risk, the major risk in some industries, so that understanding and managing that risk is a significant aspect of profitability for many firms, and a consideration for policy makers. Specific emphasis will be placed on the healthcare, biotechnology, energy, and technology business sectors.

Outcome 1: Evaluate and articulate the reasons for business regulation.

Outcome 2: Extract pertinent information from the case studies and synthesize justifications for the need and reasoning behind certain regulations.

Outcome 3: Determine and articulate the difference between “good” vs. “bad” regulations.

Outcome 4: Create their own specific industry regulations to benefit the industries involved and society as a whole.

Outcome 5: Apply game theory and other analytical models to predict the effects of current and new regulations on business sectors.

Outcome 6: Create management scenarios to conform with new regulations.