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HAI.2IOA - Industrial Organisation Analysis* Q3

Faculty
Anette Boom
Course Coordinator
Anette Boom
Prerequisite/progression of the course
Knowledge of microeconomics.
Course content, structure and teaching
The students should get an introduction to industrial organization. They should understand the basic microeconomic models of industrial organization, such as monopoly theory and oligopoly theory and their underlying intuitions. They should get acquainted with some basic concepts of game theory and with theories that explain collusive behaviour, product differentiation, market entry and exit, vertical relations and price discrimination. They should also learn to know empirical regularities around these issues and empirical approaches which try to identify market structure and the level of market power in industries.
The theories and empirical approaches will be used in class and should be used by the students in their projects in order to analyse the market structure, the type of competition, the level of market power and the strategies that firms use to maintain their market power in real world industries from potentially all parts of the world. In addition the main features of the anti-trust policies in Europe and in the US will be discussed. If possible we will have two guest speakers presenting their empirical research with respect to market power and/or their experience from the inside of an anti-trust authority.
Classroom teaching consists of a mixture of lectures and the discussion of exercises and small cases. The lectures focus mainly on the theory of industrial organization whereas the exercises and small cases are mainly concerned with the application of this theory to virtual or actual firms and industries. The focus of the students’ projects should be the application of the theory to actually existing firms and/or industries.
Learning Objectives
After having attended the course the students
  • should be able to explain the theoretical models of industrial organization covered in the course,
  • should be able to describe the basic empirical approaches in order to test certain models of industrial organization,
  • and should be able to apply the taught theoretical models of industrial organization to real world industries and firms.
The latter implies:
  • pursuing mathematical calculations,
  • using diagrammatic representations,
  • as well as producing consistent verbal arguments.
Type of examination, exam aids and assessment
Individual oral 20 minutes examination based on written group (4-6 students) project of 25-30 pages. The exam is graded by internal and external examiner on the 7-point scale. The grade is based on both the written report and on the oral performance. Re-examination when ill at the oral exam is based upon the same group project. Re-examination when ill during the writing of the project or when the ordinary exam is failed, is a 72 hour individual home assignment of 10 pages, graded by internal examiner on the 7-scale.
In the oral exam the student has to answer questions which should clarify whether and to what extent he/she understands the arguments in the delivered project report and whether these arguments make sense. Then each student has to answer a general question related to the textbook and/or the class room teaching.
No exam aids allowed.
Recommended literature
Cabral, Luis M. B. (2002), Introduction to Industrial Organization, MIT Press: Cambridge, Mass., and London.

Last updated by The electives office 03/11/2009