MICROECONOMICS PRINCIPLES WITH ETHICS
MODULE 4: The Ethics of Market Exchange Textbook Reading:Presentation Slides:Additional Useful Information:Haiti Faces an Ongoing Food Shortage Bernie Madoff, Steve Jobs, and Wall Street Greed - The American Magazine Self-interest, without morals, leads to capitalisms self-destruction - FT.com A Friedman Doctrine -- The Social Responsibility of Business is to Increase its Profits - The NY Times Five Years On: Corporate Purpose and Profit |
OVERVIEWIn this module we introduce several ethical principles that are implicitly assumed in the pure exchange model. These principles act as constraints on self-interested behavior and are needed to assure economically efficient outcomes in free markets. This section also introduces several policy issues including Milton Friedman's view on the social responsibility of business, common methods used to encourage ethical behavior, the role of intermediaries in markets, the case of high frequency trading of stocks and finally two market "success" stories that can be used to distinguish different types of income inequality.
VIDEO LECTUREEthical Constraints in the Pure Exchange Model - 21 minutes Defining Market Greed - 5 minutes Milton Friedman on Shareholder Value - 7 minutes Enforcement of Ethical Constraints - 9 minutes Intermediaries - 8 minutes High Frequency Trading - 8 minutes The Trojan/Happy App Stories and Income Inequality - 4 minutes
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