ECO 321 Industrial Economics
Industrial economics deals with economic problems of firms and industries and their relationship with society. The course is a presentation of the theory of industrial economics, with some attention to empirical aspects as well. It examines traditional and alternative theories of the firm and market structure. The behaviors - such as barriers to entry and product differentiation - which emerge under various market structures, as well as their consequences for economic welfare will be analyzed. Topics such as the diffusion of technology, government regulation of monopoly, and the privatization versus nationalization debate, will also be examined.
Topics
Introduction
Basic concepts in Game Theory
Technology, Production Cost and Demand
Perfect Competition, Monopoly and Monopolistic Competition
Foundations of Oligopoly Theory
Markets for Homogeneous Products
Markets for Differentiated Products
Concentration, Mergers and Entry Barriers
Strategic Behavior: Investment in Entry Deterrence
Pricing Tactics: Discriminatory Pricing
Marketing Tactics: Bundling, Upgrading and Dealership
Quality, Durability and Warranties
Advertising
Collusion and Cartels
Market Structure, Entry and Exit
Vertical Restraints
Research and Development
Empirical Studies on Structure-Conduct-Performance Relationship
Empirical Studies on Market Performance
Management, Compensation and Regulation
Text and References
Pepall, Richards and Norman, 2005, Third Edition (or 2002, Second Edition), Industrial Organization: Contemporary Theory and Practice, THOMSON South-Western.
Martin,S., 2002, Advanced Industrial Economics, Blackwell Publishers.
Shy,O., 1996, Industrial Organization: Theory and Applications, The MIT Press.
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