RICHARD HORNBECK BUSINESS IN HISTORICAL PERSPECTIVE

Richard.Hornbeck@ChicagoBooth.edu Business 33112

Winter 2021 Syllabus

A. COURSE OVERVIEW

This course develops an historical perspective on the modern business environment, with the goal
of preparing for seemingly unprecedented business opportunities or challenges. The course
explores how businesses have succeeded and failed in diverse contexts throughout history. Topics
include: how firms have adapted to the absence of formal legal institutions; the causes and
consequences of periods of technological revolution; similarities and differences between the Great
Depression and more recent economic turmoil; and exploring determinants of income inequality
and who benefits from productivity growth. This course fulfills the Business Environment
requirement.

B. TEACHING ASSISTANTS AND OFFICE HOURS

Teaching Assistant: Laura Montenegro (lmontenegro@uchicago.edu)

Administrative Contact: Stephen Lamb (Stephen.Lamb@chicagobooth.edu)

You should feel free to e-mail the professor with any questions or comments about the class
material. Stephen is the best contact regarding administrative details of the course and Booth.

C. MATERIALS

The course website contains information and materials relevant to the class. The site can be
reached from https://canvas.uchicago.edu/. The readings indicated on the syllabus should be read
prior to the relevant class. You are responsible for all assigned readings and for all material
discussed in class. Any slides used during the lecture will subsequently be available on canvas.

D. COURSE REQUIREMENTS AND GRADING

Grading will be based on:

• Class participation (10%)
• Case write-ups (30%)
• Final exam (60%)

We will not revisit the grading of material. If you think there is an administrative error in one of
the components of your grade then please bring this to our attention.

Class participation
The expectation for class participation is that you come to class and participate constructively in
class discussion of case materials and during interactive portions of the course lectures.

Case write-ups
The expectation is that you complete 1-page written responses to case discussion questions, to be
turned in prior to each class. No responses will be accepted after class. These responses will be
graded on the scale of check-minus, check, check-plus: the large majority of scores will be a
check, some notable responses will get a check-plus. If you receive multiple check-minuses, and
it is unclear why, then you may want to discuss with the TA ways of improving your responses in
preparation for the final exam. We will exclude the two lowest grades, and if you are unable to
turn in the reading responses for one week then that will count as one of the two lowest grades.
These case write-ups should reflect the case details and the associated theme discussed in
the course. Exceptional case write-ups will connect the material to other relevant cases and
broader thematic material covered in other sections of the course. Refer to Section F regarding
group discussion and work on these case write-ups.

Final Exam
The final exam will consist of three 2-3 page essays on the broader themes discussed in the
course, which bring in details from particular cases, class discussion, and class lectures. The
essay questions will be made available from 9am on March 14 through 9pm on March 17, and
you will be able to choose a three-hour period in which to complete the final exam.

E. OTHER DETAILS

This course fulfills the Business Environment requirement, and otherwise qualifies toward
fulfillment of a concentration in Economics. The course may be taken Pass/Fail, though note that
courses taken Pass/Fail do not count toward certain requirements. Graduating students may
request a provisional grade. Auditing of the course is not permitted.

If you require any accommodations for this course, as soon as possible please provide your
instructor with a copy of your Accommodation Determination Letter (provided to you by the
Student Disability Services office) so that you may discuss with your instructor how your
accommodations may be implemented in this course. The University of Chicago is committed to
ensuring the full participation of all students in its programs. If you have a documented disability
(or think you may have a disability) and, as a result, need a reasonable accommodation to
participate in class, complete course requirements, or benefit from the University's programs or
services, you are encouraged to contact Student Disability Services as soon as possible. To
receive reasonable accommodation, you must be appropriately registered with Student Disability
Services. Please contact the office at 773-702- 6000/TTY 773-795-1186 or
disabilities@uchicago.edu, or visit the website at disabilities.uchicago.edu. Student Disability
Services is located at 5501 S. Ellis Avenue.

F. HONOR CODE

You are welcome – and even encouraged – to discuss the cases and course themes with other
students outside of class. If this discussion is prior to class and contributes to your case write-
ups, then you should note the discussion group participants along with your case write-up. All
case write-ups should be prepared individually.

Students enrolled in this class are expected to adhere to the terms of Booth’s honor code.

Please Note: The information contained in the documents for this course, including those on
Canvas, is confidential, privileged, and only for the use of the intended recipient and may not be
used, published, or redistributed without the prior written consent of the Booth faculty member
teaching the course.

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Class Schedule and Required Readings (to be completed prior to each class)

Session 1 January 11
Introduction

Session 2 January 25
Institutions and the Business Environment
Case Reading: Alexander Hamilton, 1757-1804

Session 3 February 1
Institutional Gaps and Opportunities, Part I
Case Reading: Al Capone
Case Reading: John D. Rockefeller: The Richest Man in the World

Session 4 February 8
Institutional Gaps and Opportunities, Part II
Case Reading: The Ice King
Case Reading: Whaling Ventures

Session 5 February 15
Technological Innovation in a Changing World, Part I
Case Reading: Samuel Colt: An American Gun Maker
Case Reading: The Wright Brothers and Their Flying Machines

Session 6 February 22
Technological Innovation in a Changing World, Part II
Case Reading: The Travails of Rubber: Goodyear or Badyear
Case Reading: Neoprene

Session 7 March 1
Making Progress When the Economy Collapses
Case Reading: Trouble with a Bubble
Case Reading: Online Pet Supply Retailing

Session 8 March 8
Technological Change, Knowledge Hubs, and Inequality
Case Reading: The Origins and Development of Silicon Valley

Final Exam March 14 – March 17