Week 7: Drugs, Perfect Competition and Rock’n’Roll

Stanford GSB Sloan Study Notes, Week 7, Summer quarter

Pages assigned for reading: only 108!

With the Negotiations crash course ending, due date and presentations of the group projects in Strategy Beyond Markets and all kinds of housekeeping for study groups and Winter/Spring quarter high demand class application “superrounds” and now a long Labour Day weekend ahead, this week turned out to be quite a gear shift down… But a few notes to take down still.

POLECON239 – Strategy Beyond Markets (prof Jha)

  •  “You can always trust the USA to do the right thing, once they have exhausted all other alternatives” – Churchill
  • The public pressure on AIDS drugs pricing in Sub-Saharan Africa made US government to stop pressuringdeveloping countries on pharma IP issues in 90s
    • Did not officially change their view on TRIPS and other international agreements – those still in force
    • Yet “closed” an eye so that Brazil, Thailand, South Africa, India could start producing cheap copies
    • US own GlaxoSmithkline put into substantially worse competitive situation
  • Class-triggered open question to self: what happens to the pharma IP dynamic in the context of medical singularity (e.g when less than a year of treatment can add more than a year to a human’s lifespan)?
    • typical conflict cases (pricing, access to drugs in developing world) to date seem to focus on medication that is intended to reduce suffering, fix diseases, delay death through sickness
    • how will the global relations and corporate VS public needs play out when the drugs are not about fixing diseases, but enhancing/prolonging healthy life? Read the rest of this entry »

Week 6: Torts, the Samurai and Dance of Joy

Stanford GSB Sloan Study Notes, Week 6, Summer quarter

Pages assigned for reading: 157

POLECON239 – Strategy Beyond Markets (prof Jha)

  • Tort anecdotes:
    • The famous 1992 case where jury awarded $2.7M to Stella Riebeck who was burned by McDonald’s coffee she spilled…
      • In class discussion: “This could not happen in Italy. a) espressos are smaller and b) when you spill coffee on yourself, you say “I am stupid” and move on”
    • A Batman costume manufacturer needs to add labels with: “Parents, please exercise caution, cape does not enable users to fly”
    • When Vespa scooters with a storage compartment under the seat are produced, only the ones sent to US market get a warning label: “do not store babies or pets under the seat”

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Week 5: Supply & Demand, Patent Wars & Negotiations

Stanford GSB Sloan Study Notes, Week 5, Summer quarter

Pages assigned for reading: 339

MGTECON209 – Statistics & Economics (prof Oyer)

  • 4/5 cars sold in China in 2011 were to first time buyers.
  • Economists generally study people’s wants, rather than needs.
    • For added confusion, in wealthy countries calling something a “need” is often a value judgement.
  • Talk is cheap because supply exceeds demand 🙂
  • 800(!) occupations in US require a licence issued by local/state/federal government – thus meddling with supply.
    • In 1950s <5% of workforce, >29% in 2008
    • 40% of workers with post-college education also need a licence to work in their field
  • Price sensitivity is a concept, elasticity a mathematical term expressing it
  • Simplifying the elasticity formula
    • (% change in quantity / % change in price) = (change in Q / Q) / (change in P / P) = Slope of Demand/Supply function * (P/Q)
    • important that plugging the slope only works if the graph was drawn the “right” (e.g the unintuitive economist way) where quantity = X axis
  • Elasticity is negative over a products own price, yet positive over direct substitute’s price
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Week 4: Monopolies, Multiple Regressions & Negotiations Kickoff

Stanford GSB Sloan Study Notes, Week 4, Summer quarter

Pages assigned for reading: 121 (but quite a few written assignment deadlines)

POLECON239 – Strategy Beyond Markets (prof Jha)

  • US Antitrust regulation (from Baron textbook)
    • Protecting competition does not mean protecting competitors
    • Even though it can seem that most antitrust activity in the US is enforced by strong government interest, in reality 90% of lawsuits filed under federal antitrust laws are brought by private litigants

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Summer Quarter Schedule & Books

Now this post my dear classmates will find quite useless, but some friends outside have noted it should have preceded all those random study notes. Namely: what are the classes we are taking in Summer quarter and what are these textbooks I keep referring to. So here we go, better late than never.

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Week 3: Strong Cultures and Hello Regressions

Stanford GSB Sloan Study Notes, Week 3, Summer quarter

Note: as per feedback of longer notes (such as last week) becoming a bit random to read linearly, trying to group them by class this time.

Organizational Design Class

Pages assigned for reading: 255

POLECON239 – Strategy Beyond Markets (prof Jha)

  • Trade liberalisation creates new jobs in exporting industries. There still can be very active counter-lobby from concentrated minority interests fearing the potential harm: “jobs that will be lost are identifiable; the jobs that will be created are as yet unidentified” (Baron textbook)
  • Few random bits on ethanol business (Kellogg case):
    • Brazil stopped the sales of pure gasoline already in 2010 (20-25% ethanol component in all fuel sold).
    • There are four ethanol plants in Colorado which use waste beer as feedstock!
    • Booming ethanol fuel production has been tracked to raise food prices in the US for 10-15% in a 12 month period.
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