It is based on classes that Lakshman Krishnamurthi and I have taught to various audiences over the years. What makes it different from books currently on the market is that it has, shock, horror, equations. I have to thank Lakshman for agreeing to such a foolhardy thing when we want to reach readers with an MBA or equivalent. Any decent MBA program requires some knowledge of probability, statistics and economics. Therefore, why write a book for this audience that does not make use of this knowledge? If we did, we are either hypocrites or contemptuous of our readers (or both).
Our experiences in the classroom (with both full time students and working executives) has convinced us of an appetite for a business book that relies on close and careful reasoning rather than loose analogies and anecdotes. We will see if our students are a reflection of the world at large.
I should note that portions of this book have also been used with undergraduates with enormous success. If you teach a higher level undergraduate econ class and are bored out of your mind, I would suggest offering a class based on this book. It could be used in place of the traditional (soporific) IO offering.
2 comments
March 22, 2012 at 2:39 pm
Y. Shaban (Entrepreneur & Kellogg MBA Fall 2012 applicant)
I’ve dealt with pricing a lot in my retail business. One thing is for sure: people are definitely not the rational decision-makers that traditional economics would suggest. I would argue this extends to even b2b companies.
Your book definitely sounds like an interesting read. Are you planning on letting readers see a few pages inside the book on Amazon.com? It helps prospective buyers get a feel of the book.
April 2, 2012 at 1:15 pm
rvohra
Dear Y. Shaban
Yes, the publisher will get around to making some pages available. On the subject of rationality, here is excerpt that was cut because it was thought a little to rude:
Economics starts with the assumption that the players are rational; suggesting that mad dogs and Englishmen are not the only ones who go out into the noonday sun. Why don’t we allow irrational actions? Irrationality explains everything and so nothing.
The rationality assumption attracts criticism the way horse shit attracts flies and so deserves discussion. The first question is what precisely does it mean to be rational?8 The second is, why is it reasonable to assume that players are rational?