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Chicago GSB’s class of 2006 can have a “disproportionate impact” on the world because they can apply economic principles in life, according to speakers at spring convocation June 11 on Harper Quad.
Giving “one last lecture,” Kevin Murphy, George J. Stigler Distinguished Service Professor of Economics, encouraged the students to apply economic principles personally and professionally to the world at large—in particular, equilibrium, incentives, and cost-benefit analysis.
He suggested there is equilibrium in the “market of ideas” and told students to recognize the value of the status quo. Practices at professional institutions usually evolved because they have advantages, he said. “People often talk about thinking outside the box and, indeed, there are many good ideas outside the box. Unfortunately there are many more bad ideas outside the box than there are good ideas,” said Murphy, after doffing his academic cap to reveal a baseball cap.
Students now need to jump from thinking about things on the blackboard to practicing those principles in life outside the classroom, Murphy said. “Incentives do matter,” he said, recommending they apply cost-benefit analysis when they consider alternatives, define objectives, and determine hidden costs in life.
Mary Ann Tolan, ’92, CEO of Accretive Health, recalled being welcomed to the GSB with the observation that its students “are those who would seek to have disproportionate impact.” She exhorted graduates to make that impact as entrepreneurs. Taking a risk as an entrepreneur gives the reward of learning even when the initiative fail, Tolan added.
She also urged students to consider public service. “We often are looking for people with sound economic bearings to have a voice,” she said. “I look forward to an opportunity to vote for you. You would grace the political world.”
—Jenn Q. Goddu