NMAK11020U Microeconomics 3 – Industrial Organization (MikØk3)
MSc Programme in Mathematics-Economics
The course provides an introduction to modern industrial organization based on game-theoretic analysis. Industrial organization concerns how markets work and firms compete, especially when there are a limited number of firms in the market.
After having successfully completed the course a student will be familiar with a number of basic topics in industrial organization theory, including: monopoly; price discrimination; short run price competition and Cournot oligopoly; dynamic price competition, tacit collusion and cartels; empirical tests of oligopoly; product differentiation; vertically related markets.
After having successfully completed the course a students will be able to:
- Describe the main theories of monopoly behavior and of oligopoly competition and to compare them in terms of central features such as prices and welfare.
- Describe the different kinds of price discrimination, the ways in which price discrimination can be implemented, and how price discrimination affects the different economic agents involved.
- Describe the main theories of collusion and to identify factors that hinder and facilitate collusion.
- Solve formal models using tools from mathematical optimization theory and game theory.
- Analyze formal models that are variations of the models and theories covered in the course and to provide economic intuition for the results obtained.
- Read professional journal articles on industrial organization and to use insights from this field when analyzing and thinking about questions where imperfect competition plays a role.
The primary aim of the course is to introduce students to modern industrial organization (building on and adding to the students’ knowledge about industrial organization from Microeconomics 2). A broader aim is that students who take the course will, by working extensively with theoretical models, acquire analytical skills that are transferable to other kinds of intellectual problems.
- 7,5 ECTS
- Type of assessment
- Written assignment, 27 hours27-hour take-home assignment.
- All aids allowed
- Marking scale
- 7-point grading scale
- Censorship form
- External censorship
Same as ordinary. If only ten or fewer persons are registered for the re-exam, it will be replaced by a 30-minutes oral exam (with 30 minutes preparation time and all aids allowed).
Criteria for exam assesment
The student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.