Walter A. Haas School of BusinessCourse Outline

University of California, BerkeleyFall 2000

BA207B: BUSINESS AND PUBLIC POLICY, TUESDAY-THURSDAY SECTIONS

This course will be taught by Professors Rui de Figueiredo and Pablo Spiller, with Prof. de Figueiredo teaching for the first five weeks and Prof. Spiller the second five weeks.

CONTACTING THE INSTRUCTORS:

Professor Rui J. de Figueiredo

Office: Haas School, Faculty Wing F588

Phone: (510) 642 6452

Fax: (510) 643 1412

email:

website:

(To reach me, please try email first)

Office Hours: Wednesday, 12.30-1.30 Haas School F588

Professor Pablo T. Spiller

Office: Haas School, Faculty Wing F593

Phone: (510) 642 1502

Fax: (510) 643 1412

email:

website:

(To reach me, please try email first)

Office Hours: Thursday, 2-3 Haas School F593

COURSE DESCRIPTION:

This course introduces students to the political and social (nonmarket) environment of business. Topics include domestic political institutions and policymaking, corporate political strategies, government regulation and deregulation, industrial policy, trade policy making, and international institutions.

READINGS:

It is your responsibility to find the readings listed on the syllabus in the library or on the world wide web. However, the course readings will be available on an electronic reserve system. To access the reserve readings you must go to

(or alternatively, go to sunsite.berkeley.edu/eres and find the course BA207B)

The password is bpp00.

COURSE REQUIREMENTS AND GRADING:

  • Grading

25%: Class attendance and participation

25%: Group write up of a case

50: 10 page paper

  • Class attendance and participation: This part of the grade will be awarded for regular class attendance and participation in classroom discussions. Please contact the instructor if you know that you will be unable to attend a specific class. Oral participation is a key element in developing skill as an advocate for your position. While the quality of participation is more important than sheer quantity, a minimum level of participation is clearly essential.
  • Group presentation of a case: Working in groups of five or six, students will writeup a case (listed below as Group Case #). You should specify the role you are playing, the context of the case, the issue(s) that needs to be addressed, and your recommendation based on analysis of options and supporting evidence. The written presentation is due at the beginning of class, and should be no more than 10 pages long. Group members are expected to respond to questions from both their classmates and instructor.
  • Paper: Due on December 7, 2000.

Overview: Prepare an executive brief of no more than 10 double-spaced pages on an issue relevant to the environment of business. You should assume the role of a business manager, trade association, or consultant to industry. The paper should state, develop, and explain your position on a current public policy issue facing your business or industry.

Choice of Topic: Choose a public policy issue that is significant but specific. In developing ideas for a topic, you may wish to read trade publications or more general magazines such as the Economist. Other ideas may come from issues discussed in the national press. You should feel free to consult with the professor or others on your topic.

Elements of the Paper:

1. Issue. Discuss the issue or issues to be addressed and why this is a potential problem or opportunity for the firm or trade association that you represent.

2. Context. Identify the origin of the problem and where it currently stands on the political agenda.

3. Political Forum. Discuss the political forum or forums in which the issue or issues are likely to be addressed.

4. Range of Outcomes. What outcomes might be likely and how would they impact your firm or association's interests and objectives?

5. Bargaining Context and Spreadsheet. Identify your firm or association's potential allies or adversaries and construct a distributive politics spreadsheet to analyze likely outcomes.

6. Strategy and Arguments. Suggest an appropriate market and/or nonmarket strategy to deal with the issue(s). Discuss the arguments that might be used to support or challenge your firm or association's position.

COURSE OUTLINE AND READING ASSIGNMENTS:

PART I: NON-MARKET ISSUES, STRATEGIES, AND U.S. INSTITUTIONS

CLASS 1: October 3: Introduction to Non-Market Strategy and Integration with Market Strategies
David Baron, “Integrating Market and Non-Market Strategies,” CMR, Winter 1995.
  • “Closing the Internet: How E-Businesses Use Market, Technology and Policy to Sustain Advantage,” Sirkka Jarvenpaa and Emerson Tiller, 2000.
Optional: Baron, “The Market and Non-Market Environments” and “Integrated Strategies,” Chapters 1 and 2.
CLASS 2: October 5: Political Institutions in the United States
  • Case: “Business’s Push for Daylight Savings,” Fortune, Nov. 14, 1984
Optional: “Political Theory and Government Institutions,” Baron, Chapter 5.
CLASS 3: October 10: Political Institutions in the United States
  • Case: “Business’s Push for Daylight Savings,” Fortune, Nov. 14, 1984 (continued)
  • “Political Analysis for Business,” Baron, Chapter 6.

CLASS 4: October 12: Coalition Formation and Interests

  • Case: Taxing the Internet
  • “Sentiment Against Internet Taxation Prevails at Hearing,” San Jose Mercury News, December 15, 1999.”
  • “Lobbying for Net Firms Gets Boost from ‘Adhocracy,’” The Wall Street Journal, December 21, 1999.
  • “No Net Taxes: A Break for the Well-Off,” Business Week, January 17, 2000.
  • “Net Losses,” The Economist, January 29, 2000.
  • “The Happy E-Shopper,” The Economist, January 29, 2000.
  • “Implementing Political Strategies,” Baron, Chapter 8.

PART II: REGULATION

CLASS 5: October 17: Economic Regulation

  • GC#1: “Echelon and the Home Automation Standard,” Baron, pp. 215-219.

Optional: Baron, “Regulation, Law, Economics and Politics,” Baron, Chapter 10.

CLASS 6: October 19: Antitrust Regulation
  • Baron, “Antitrust, Economics, Law, Policy and Markets,” Chapter 9.
  • GC#2: “The Microsoft Antitrust Case,” Baron, pp. 298-306.
CLASS 7: October 24: Biotechnology
  • GC#3: The Human Genome Project and Celera
  • “PE Corporation, SEC Form S-3/A,” February 28, 2000, PE Corporation, Prospectus Summary, pp. 3-4.
  • “Decoding the Human Body,” Newsweek, April 10, 2000
  • “A Revolution in Medicine,” Newsweek, April 10, 2000
  • “The Gold Rush,” Newsweek, April 10, 2000
  • “Who Will Own the Code of Life,” Newsweek, April 10, 2000
  • “Clinton, Blair to Back Access to Genetic Code,” LA Times, March 14, 2000.
  • “Biotech Firm’s Mixup on Fly Genome Creates a Stir,” LA Times, April 20, 2000.
  • “Competitors in Genome Race Seek Truce,” Portland Oregonian/NYT News Service, June 22, 2000.

Optional: “PE Corporation, SEC Form S-3/A,” February 28, 2000, PE Corporation, Business of the Celera Genomics Group, pp. 32-49.

PART III: PRIVATE NON-MARKET ACTION

CLASS 8: October 26: Self-Regulation
GC#4: “Responsible Care,” HBS Case 9-391-135.
CLASS 9: October 31:

GUEST SPEAKER: Mr. Kirk Raab, Former President, CEO and Director, Genentech

CLASS 10: November 2: Non-Profit Management
  • “Business Leaders and Nonprofits,” James Austin, Nonprofit Management and Leadership, Fall 1998.
  • Case: “Timberland and Community Involvement,” HBS Case 9-796-156.
CLASS 11: November 7: Activism, the Media and the Politics of Risk
  • Baron, “The News Media and Non-Market Issues,” Chapter 3.
GC#5: “Alar,” Baron, pp. 85-86.
Case:“Veggie Libel Wars,” Baron, pp. 86-88.

PART IV: THE LAW AND NON-MARKET STRATEGY

CLASS 12: November 9: Regulating Content
GC #6: eBay vs. AuctionWatch and eBay vs. Bidder’s Edge
  • “AuctionWatch Nips at eBay’s Heels,” Cnet News, October 5, 1999.
  • “Bidder’s Edge Raises eBay Challenge,” MSNBC.com News, November 2, 1999.
  • “eBay Blocks AuctionWatch Searches,” MSNBC.com News, November 4, 1999.
  • “eBay’s Battle with Aggregators,” ComputerUser News, November 7, 1999.
  • “AuctionWatch to Search eBay Listings,” ZDNetNews, January 20, 2000.
  • “eBay under DOJ Investigation,” ZDNetNews, February 4, 2000.
  • “eBay vs. Auction Aggregators: A Freedom Fight?” e-Commerce News, February 11, 2000.
  • “Legal Action Taken by eBay against Bidder’s Edge,” office.com, May 10, 2000 (all 3 pages).

Optional:

“Recent Linking Issues,” Richard Raysman and Peter Brown, BRFMS, 2000.

David Teece Affidavit in eBay vs. Bidder’s Edge.

Mark Lemley Brief in eBay vs. Bidder’s Edge.

CLASS 13: November 14: Privacy and E-commerce

  • “Beyond Concern: Understanding Net Users’ Attitudes About Online Privacy,” Cranor, et. al., AT&T Labs Research Report TR 99.4.3, April 14, 1999. Executive Summary.
  • “The US and Europe: A Public Brawl over Online Privacy,” Business Week, December 15, 1999.
  • “Privacy Fears Raised by Doubleclick Database Plans,” Cnet News, January 25, 2000.
  • “Privacy: Outrage on the Web,” Business Week, February 8, 2000.
  • “FTC Launches Investigation into DoubleClick,” E-commerce Times, February 17, 2000.
  • “Double Dutch: Critics Blast DoubleClick Privacy Pledge,” Marketing Click, April 2000.
  • “Q&A with EPIC’s Marc Rotenberg,” Business Week, May 4, 2000.
  • “Beleaguered Doubleclick Appoints Privacy Board,” E-Commerce Times, May 17, 2000.

Optional: “Beyond Concern: Understanding Net Users’ Attitudes About Online Privacy,”

Cranor, et. al., AT&T Labs Research Report TR 99.4.3, April 14, 1999. Full report.

“Privacy Choices: Your Resource for Online Privacy Information,”

and

“Doubleclick Gets the Double Standard on Net Privacy,” Forbes, June 23, 2000.

PART V: NON-MARKET STRATEGIES AROUND THE WORLD

CLASS 14: November 16: Mexico: Telecommunications and Antitrust Regulation

  • Case: Iusacell
  • “Craig McCaw del Sur,” Forbes, April 11, 1994.
  • “Star Wars in Cyberspace,” Business Mexico, October 1994.
  • “IUSATEL: A Fixed Wireless Solution for the Mexican Market,” Telesis, October 1995.
  • “Mexican Stand-off,” Communications International, November, 1996.
  • “A Mexican Morass for Bell Atlantic,” Business Week, January 20, 1997.
  • “Opportunity Flourishes in Mexico’s Dynamic Market,” Wireless Week, June 28, 1999.

CLASS 15: November 21: The European Union: Business Lobbying, and Political Institutions

  • Baron, “The European Union,” Baron, Chapter 14.
  • Case: “Toys R’ Us in Germany,” Baron, p. 481
  • Case: “Toys R’ Us in Sweden,” Baron, p. 482.

CLASS 16: November 23: The European Union: Standard Setting

  • GC #7: “Echelon in Europe,” Stanford GSB Case.

Optional: “International Cooperation and the Logic of Global Networks: Europe and the Global

System for Mobile Communications,” David Bach, BRIE Working Paper 139, July 2000.

CLASS 17: November 28:China: Business Lobbying and Political Institutions

  • GC#8:Sina.com
  • Sina.com Website, About Sina.com and About Sina.com\Content
  • “China Bans Foreign Investment in Internet Sector,” asia.internet.com, September 14, 1999.
  • “China’s Net Firms Left Out in the Cold?” ZDNet News, September 15, 1999.
  • “China May Alter Net Investment Laws,” Reuters Online, September 27, 1999.
  • “Foreign Investment in China’s Internet Business: Forbidden, Forgiven, Forced Open?” Chinaonline.com.
  • “Great Wall of Internet: China Tightens Online Grip,” Washington Post, January 27, 2000.
  • “Sohu.com Takes Novel Approach to NASDAQ Listing,” Reuters Online, February 16, 2000.

Optional: Baron, “China: History, Culture, and Political Economy,” Chapter 15.

CLASS 18: November 30:

GUEST SPEAKER: Mr. Robert Lewin, CEO and Chairman, Trust-e

PART V: INTERNATIONAL TRADE AND NON-MARKET ISSUES

CLASS 19: December 5: International Trade, Institutions, and Negotiations

Baron, “The Political Economy of International Trade Policy,” Chapter 16

GC#9: “The Kodak-Fujifilm Trade Dispute”

CLASS 20: December 7: International Trade, Institutions, and Negotiations

  • GC#10: Qualcomm and 3G Wireless Standards (with a focus on China)
  • “Europe, US Won’t Budge on 3G,” Wireless Week, January 25, 1999.
  • “3G Standards: Peace Without Harmony,” Wireless Week, June 7, 1999.
  • “WTO Entry to Aid Industry,” Wireless Week, November 22, 1999.
  • “Illusions of Competition and Investment Prayers,” Wireless Week, November 29, 1999.
  • “Qualcomm Spearheads CDMA Thrust into China,” Wireless Week, February 7, 2000.
  • “China Postpones Qualcomm Cell Phone System,” CNetNews, February 24, 2000.
  • “Prospects for Qualcomm and CDMA in China,” chinaonline.com, May 25, 2000.

Optional:

“Wireless 2000: A Study of the Wireless Communciations Market,” Micrologic Research,

January 2000.

PAPER DUE: December 7, 2000