Universität Wien FIND

040108 UK Industrial Organization (BA) (2019W)

Track in Competition and Regulation

4.00 ECTS (2.00 SWS), SPL 4 - Wirtschaftswissenschaften
Continuous assessment of course work

Registration/Deregistration

Details

max. 50 participants
Language: English

Lecturers

Classes (iCal) - next class is marked with N

Tuesday 01.10. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 08.10. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 15.10. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 22.10. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 29.10. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 05.11. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 12.11. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 19.11. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 03.12. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 10.12. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 17.12. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 07.01. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 14.01. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 21.01. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 28.01. 15:00 - 16:30 Seminarraum 3 Oskar-Morgenstern-Platz 1 1.Stock

Information

Aims, contents and method of the course

Format: The topics of the course will be presented by the lecturer. Problem sets will be distributed regularly through the course website. Some sessions will be devoted to the discussion of problems. Students are expected to read the material in advance so that there can be active interaction during the lectures. When problems are discussed, students are expected to have worked on the problem sets in advance. Students are expected to do there commended readings to complement classroom discussion of the topics.

Course Summary: After the required Microeconomics and Game Theory classes, students should be familiar with the functioning and properties of perfectly competitive markets, where market participants act as price takers, and with the basic monopoly model. The basic game theory course should have made students familiar with the basic tools to study strategic interaction, namely Nash equilibrium and subgame perfection.
The course starts with the basic models of imperfect competition (Cournot, Bertrand and Stackelberg). The present course takes a theoretic approach and studies how market participants are aware of the influence oftheir decisions on others, taking optimal advantage of their information about the market and their competitors. The resulting market equilibrium heavily depends on the prevailing market structure -- the number of competitors, the cost structure, the choice of strategic decision variables (output, quality, location and/or price), the order of moves (sequential vs. simultaneous), product characteristics (like number of competing products and degree of product substitutability). Moreover, firms can influence market structure through advertising, product positioning, as well as through their investment on technology improvements and also by merging with or acquiring other firms.

Target group: Bachelor Students in Economics

Prerequisites: Microeconomics I (Mikroökonomie I) and Game Theory I (Spieltheorie I).

Course outline:
Week 1, Topic: Introduction, Literature: C1, C7.1; CW1
Week 2, Topic: Bertrand competition, Horizontal Product Differentiation, Literature: CW 8.3, C12, CW 11
Week 3, Topic: Horizontal and Vertical Product Differentiation, Literature: C12, CW 11
Week 4, Topic: Bertrand Competition with Capacity Constraints, Literature: CW 14.1
Week 5, Topic: Consumer Search and Advertising
Week 6, Topic: Exercises and preparation for midterm
Week 7, Topic: Midterm
Week 8, Topic: Cournot, Stackelberg, Literature: CW 8.2, 13.2
Week 9, Topic: Entry and Exit I, Literature: CW14.1, C 15
Week 10, Topic: Mergers, Literature: CW23
Week 11, Topic: Collusion, Literature: CW10
Week 12, Topic: Vertical relations, foreclosure, Nonlinear Pricing, Literature: CW22, C11, C10
Week 13, Topic: Exam Preparation
Week 14, Topic: Final Exam

Assessment and permitted materials

Grading will be as follows. One midterm (40%) and final (50%) and one homework (10%).

Minimum requirements and assessment criteria

Examination topics

Contents: The recommended readings below give author's name and the sections orchapters in the corresponding book; e.g. Cabral: 2.2-2.4 refers to the sections between 2.2 and 2.4 in Cabral's book.

Course outline
Week Topic Literature
10 Introduction, Bertrand competition C1, C7.1; CW1
11 Cournot and Stackelberg CW8; CW 13.2
12 Product Differentiation C12, CW 11
15 Bertrand Competition with Capacity Constraints C7.2; CW 8,3
16 Entry and Exit CW14, C 15
17 Collusion CW10
18 Mergers CW23,
20 Research & Development C16, 18
21 MIdterm
9 Vertical relations, foreclosure CW22, C11
23 Nonlinear Pricing and Price Discrimination I C10
24 Nonlinear Pricing and Price Discrimination II CW5
25 Final Exam

Reading list

Textbooks: [1] Cabral, L., 2000. Introduction to Industrial Organization, MIT Press.
[2] Church, J. and R. Ware. 2000. Industrial Organization. A Strategic Approach. McGraw-Hill.

Association in the course directory

Last modified: Tu 22.10.2019 15:27