Syllabus

Spring 2007

Instructor:  Howard Leathers:  3200C Symons Hall  (301) 405-1277

                        howardl@arec.umd.edu 

Class:  MWF, 10:00-10:50 a.m.  0115 Symons

Office Hours:  MW, 12 - 12:30  p.m. or by appointment.

Course Description: Presents basic economic theory as applied to the marketing of agricultural products.  Current developments affecting market structure include effects of contractual arrangement, vertical integration, governmental policies and regulation.

Target Audience/Prerequisites:  This course is intended for junior or senior undergraduates in the AREC department.  It uses ECON 306 (calculus based intermediate microeconomics) as a prerequisite.  Any student who has taken calculus and ECON 306 should be prepared to take this course. 

Course Objectives:  Students should learn how agricultural commodities are marketed, and how to apply the tools of economic analysis in order to gain insight into marketing practices and institutions. 

Grading:   One midterm and a final exam will be given.  No exams will be given at times other than those shown on the class schedule unless arrangements are made with me prior to the exam.  Notice the exams scheduled below, and make your travel plans to accommodate those dates.  Problem sets will be assigned for most of the sections of the course. Some assignments will be oriented towards problem solving and will require the use of mathematical methods (introductory calculus is required).  Participation in in-class simulated market trading will also count toward student grades.   Grades of A, B, C, D, and F will be assigned for the course.  A+ may be given to a student who demonstrates truly exceptional ability and performance.  No other plusses or minuses will be given.  Letter grades will be based on a curve, depending on the distribution of numerical scores in the class.  Numerical scores will use the following weights.  The midterm is worth 25% of the grade, the final exam is worth 35%, homeworks are worth 25%, and participation in the in-class market simulation is worth 15%.

Policy on Late Assignments:  Assignments are due in class on the date specified.  Late assignments will be accepted until the class period in which the assignments are returned and discussed, but a 20% deduction of points will be imposed for lateness.  After an assignment has been returned and discussed, no late assignments will be accepted and a zero will be recorded for that assignment.

Policy on Make-up Exams:   Requests for make-up exams are strongly discouraged.  Under extremely rare and unusual circumstances, make-up exams will be given, but only if the request is made prior to the starting time of the exam.  Requests can be made in person, by phone, by leaving a voice mail message on the number above (date and time automatically recorded), or by sending an email message with a date and time prior to the exam.   If you fail to take the exam and fail to request a makeup prior to the beginning of the exam, a zero will be recorded for that exam.

Attendance:  Attendance is not mandatory, but in-class participation is an integral part of the course and will be taken into account in the final grade.   Attendance and class participation are indicators of a student's level of effort.  If a student has recurrent scheduling conflict ("soccer practice starts at 9:30",  "I have a job on Monday mornings",  "I am going to be away from campus on 7 Fridays throughout the semester")  that student should immediately drop AREC 427, before the drop-add date.

Academic Dishonesty:   Any suspected instances of academic dishonesty will be reported to the Office of Judicial Programs, as required by University rules and regulations:  http://www.inform.umd.edu/PRES/policies/iii100a.html .   Academic dishonesty is defined as follows.

•  
  (a) CHEATING: intentionally using or attempting to use unauthorized materials, information, or study aids in any academic exercise.
  
  (b) FABRICATION: intentional and unauthorized falsification or invention of any information or citation in an academic exercise.
  
  (c) FACILITATING ACADEMIC DISHONESTY: intentionally or knowingly helping or attempting to help another to violate any provision of this Code.
  
  (d) PLAGIARISM: intentionally or knowingly representing the words or ideas of another as one's own in any academic exercise.
• ACADEMIC DISHONESTY: any of the following acts, when committed by a student, shall constitute academic dishonesty:
   

Using words or ideas of another person is permitted as long as you clearly identify the source of the words or ideas.    Students are encouraged to work together on homework assignments;  however, each student should write up their own homework independently. 

Student Honor Pledge:  On every examination , paper or other academic exercise not specifically exempted by the instructor, the student shall write by hand and sign the following pledge:

I pledge on my honor that I have not given or received any unauthorized assistance on this examination (or assignment).

Failure to sign the pledge is not an honors offense, but neither is it a defense in case of violation of this Code. Students who do not sign the pledge will be given the opportunity to do so. Refusal to sign must be explained to the instructor. Signing or non-signing of the pledge will not be considered in grading or judicial procedures. Material submitted electronically should contain the pledge; submission implies signing the pledge.

Policy on Students with Disabilities:  The University is legally obligated to provide appropriate accommodations for students with documented disabilities. In order to ascertain what accommodations may need to be provided, students with disabilities should inform the instructor of their needs at the beginning of the semester.

Policy on Religious Observances:  Every feasible effort will be made to accommodate students' requests based on attendance of religious observances.   Requests must be made in advance.  
 

AREC 427, Spring 2007 Lecture Schedule

Jan 24              Introduction     

Jan 26              Math Review

Jan 29              Marketing Margins

Jan 31               Markets and Prices

Feb 2               Market Efficiency

Feb 5               Trading Simulation I:  simple trading in a one-price market

Feb 7               Monopsony, Oligopsony

Feb 9               Monopsony:  how it occurs   (livestock and grocery retailing)

Feb 12             Monopsony:  what are its effects?   (margins in dairy markets)

Feb 14             Trading Simulation II:  Monopoly and Oligopoly

Feb 16             Cooperatives  Dairy cooperatives:   “Cooperatives Working Together”

Feb 19             Trading Simulation III:    Bilateral monopoly,  countervailing power.

Feb 21             Price Discrimination:  Marketing Orders

Feb 23             Monopolistic Competition:  Niche marketing in agriculture

Feb 26             Monpsonistic competition:  Plant location

Feb 28              Price Surfaces and Marketing Areas

Mar 2               Futures markets           

Mar 5               Futures markets

Mar 7               Futures markets and risk management

Mar 9               Options

Mar 12             Catchup/Review

Mar 14             Midterm Exam  10-10:50 in class

Mar 16             No class meeting

Mar 19             Spring Break

Mar 21             Spring Break

Mar 23             Spring Break

Mar 26             Trade between markets with transportation  International Trade

Mar 28             Barriers to Trade

Mar 30             Barriers to Trade and domestic support

Apr 2               Free Trade Areas

Apr 4               World Trade Organization

Apr 6               Product Quality and Marketing Institutions

Apr 9               Trading Simulation IV:  Market for Lemons

Apr 11             Biotechnology

Apr 13             Contracts

Apr 16             Contracts

Apr 18             Contracts

Apr 20             Trading Simulation V:  Principal-Agent

Apr 23             Vertical Integration

Apr 25             Vertical Integration

Apr 27             Auctions

Apr 30             Auctions

May 2             Auctions

May 4              Trading Simulation VI:  Auctions

May 7              Agricultural marketing and the internet

May 9              Catchup/review

Final Exam        Friday May 18 8:00-10:00 am