SOC 138 / ECO 148 CASE STUDY EXERCISE: SUN OIL
CARTER T. BUTTS
FALL QUARTER, 2017
INTRODUCTION
This class focuses on the basic principles of decision making, and the ways in which. individuals
and groups often deviate from those principles. This exercise gives you a chance to practlce applying
these principles in a case study context, via an analysis of decisions made within a real-world
business setting. Specifically, you will be shown a video presentation which documents the actions
of persons within a particular firm (Sun Oil), as they made decisions regarding 011 leases off the
southern California coast in the early 19805. Following this presentation, you will be asked to
produce a short write-up identifying and analyzing decisions made by individuals withln the firm.
This write-up is to be submitted electronically through the EEE Quiz system, and is due at the
beginning of class on Friday, October 27.
Note: It is highly recommended that you read the questions below before the video presentation
begins, and that you take careful notes during the presentation itself. Otherwise, you may not recall
sufi‘icient details to produce an effective write-up.
CASE STUDY WRITE-UP
Imagine that you are employed by a firm facing similar decisions to those made by Sun Oil, and
that you have been asked to brief management on features of the case which might be applicable to
your own situation. Specifically, your assignment is to produce a short write-up which examines the
decisions made by employees of Sun Oil (or other individuals or organizations depicted within the
video). The write-up is divided into several specific questions, as noted below. For each item, please
provide a clear, correct, and cogent reSponse that provides the information being requested. As in
a real-world context, your answers should be succinct and to the point – brevity is encouraged, so
long as important information is not omitted.
1. Identify and briefly describe any two decisions made during the course of the case. For each
decision, specify all of the following:
(a) The decision maker;
(b) The decision maker’s choice set;
(c) The major factors impacting the decision maker’s assessment of the value of the options
in his or her choice set; and
(d) The major factors impacting the decision maker’s beliefs regarding the outcomes of his
or her choices.
2. Consider what you have learned (from lectures, discussion sections, and readings) about the
prrncrples of rational choice, judgment, and strategic behavior. From these principles, choose
watch a video and then answer several questions.
This is the link of the video: https://youtu.be/VAdqyDtoEbI
