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040290 UK Industrial Organization (MA) (2018W)

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

Office hours: Please make an appointment by email.

Registration/Deregistration

Details

max. 50 participants
Language: English

Lecturers

Classes (iCal) - next class is marked with N

Monday 01.10. 09:45 - 11:15 Studierzone
Tuesday 02.10. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 08.10. 09:45 - 11:15 Studierzone
Tuesday 09.10. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 15.10. 09:45 - 11:15 Studierzone
Tuesday 16.10. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 22.10. 09:45 - 11:15 Studierzone
Tuesday 23.10. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 29.10. 09:45 - 11:15 Studierzone
Tuesday 30.10. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 05.11. 09:45 - 11:15 Studierzone
Tuesday 06.11. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 12.11. 09:45 - 11:15 Studierzone
Tuesday 13.11. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 19.11. 09:45 - 11:15 Studierzone
Tuesday 20.11. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 26.11. 09:45 - 11:15 Studierzone
Tuesday 27.11. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 03.12. 09:45 - 11:15 Studierzone
Tuesday 04.12. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 10.12. 08:00 - 09:30 Studierzone
Monday 10.12. 09:45 - 11:15 Studierzone
Tuesday 11.12. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 07.01. 09:45 - 11:15 Studierzone
Tuesday 08.01. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 14.01. 09:45 - 11:15 Studierzone
Tuesday 15.01. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 21.01. 09:45 - 11:15 Studierzone
Tuesday 22.01. 11:00 - 13:00 Studierzone
Monday 28.01. 09:45 - 11:15 Studierzone
Tuesday 29.01. 11:30 - 13:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Information

Aims, contents and method of the course

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 the recommended readings to complement classroom discussion of the topics.

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, as well as with the basic models of imperfect competition (monopoly, Cournot and Bertrand oligopoly, Stackelberg model) and the notions of Nash equilibrium and subgame perfection. The present course, focusing on markets with imperfect competition, takes a theoretic approach and serves as a complement to the core Microeconomics classes. Most real world markets are have a few larger firms operating and therefore are characterized by of imperfect competition. In markets with imperfect competition, market participants are aware of the influence of their decisions on market prices and act strategically, 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. Consumers sometimes play an active role as well, for example when deciding how much information to acquire about firms’ offerings.

The course will consists of several parts. After reviewing the main microeconomic concepts used in the course and spending some time on discussing how to delineate the market, the first part of the course will be devoted to monopoly, with a single firm serving the market. Leaving the basic monopoly model behind us, we will mainly inquire into different forms of price discrimination and how these affect welfare. We also delve into the issue how the durability of the product constrains the monopoly power of the firm. From there we will move to markets where strategic interaction and/or informational asymmetries between firms plays an important role. This large topic will be divided into several parts. First, we will discuss the Bertrand paradox and different ways to get around that paradox. Here, we will turn to the role of product differentiation, capacity constraints, and consumer search (imperfect information on the part of consumers). Second, we will deal with strategic forms of entry deterrence. Here, we will turn to building up capacity in order to be a more aggressive competitor and also the limit pricing model. To discuss this model properly we have to deal also somewhat extensively with the notion of perfect Bayesian equilibrium. Third, we will deal with cartel formation and explicit and tacit collusion. Finally in the last part of the course we will look at research and development, network externalities, and other miscellaneous topics (if time permits).

Assessment and permitted materials

Grading will be as follows. There will be one midterm and final exam. The midterm will count for 40% of the final grade and the final exam for 50%. The remaining 10% is for homeworks and in class participation.

Minimum requirements and assessment criteria

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

Examination topics

Reading list

[1] Belleflamme, P. and M. Peitz. 2010. Industrial organization. Markets and Strategies. Cambridge University Press.
[2] Church, J. and R. Ware. 2000. Industrial Organization. A Strategic Approach.
McGraw-Hill.

Find more details on Moodle.

Association in the course directory

Last modified: Mo 07.09.2020 15:29