January 12, 2011:

Just a couple of thoughts (will try to make sure that you never forget about economics until the day you graduate): First, why is it that Verizon offers a discount for the iPhone (and all other phones) if you extend your service for one or two years? A puzzle for me in itself, but even more of a puzzle when I think that Amazon doesn’t offer a discount on its Kindle with a multi-year ebook subscription (among any number of examples of upfront discounts contingent on tie-ins).

Second, after going through perfect competition this fall (for the last time), it occurred to me that perfect freedom of entry (or zero entry cost) is the ultimate barrier to entry. How can that be?

Your two 500-word papers are due in two weeks?

Kenny Rogers was wise when he sang, “You got to know when to hold 'em, know when to fold 'em -- know when to walk away, know when to run.” I’ve always wanted to do better, to walk away before it was time to run. For those of you who have not heard, I will be retiring at the end of June. I’ve had a wonderful forty-five-year career, the last twenty of which have been here at Merage teaching only MBA students. What’s made my retirement decision so hard, causing me to string it out for so long, is that I truly feel privileged to have had the best job in the world. As I officially end this part of my career, I feel very fortunate to have been paid well to do more or less what I’ve wanted – and to teach you! I don’t really think I have ever had a “job” in the way most people use that word. For the most part, it’s all been adult playtime, and even without close supervision. So few people in this world can say that with a full measure of meaning. Be assure that I will not take to a rocking chair.

Hope the year goes well for you in our program and beyond.

Upward and onward,