NMAK11020U  Microeconomics 3 – Industrial Organization (MikØk3)

Volume 2017/2018
Education

MSc Programme in Mathematics-Economics

Content

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.

Learning Outcome

Knowledge in:

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.

 

Skills at:

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.

 

Competences to:

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.

Microeconomics 2
The course is based on combined lectures/exercise classes. There will be six hours of classes a week for seven weeks, where each class can contain lecture material or discussion of a problem set.
Credit
7,5 ECTS
Type of assessment
Written assignment, 27 hours
27-hour take-home assignment.
Aid
All aids allowed
Marking scale
7-point grading scale
Censorship form
External censorship
Re-exam

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.

  • Category
  • Hours
  • Lectures
  • 42
  • Exam
  • 27
  • Preparation
  • 137
  • Total
  • 206