AØKA08020U Industrial Organization

Volume 2014/2015
Education
BSc in Economics
MSc in Economics
Content

The course covers the basic theory of industrial organization. In particular, the following areas are treated:
 

  • Monopoly
  • Price Discrimination
  • Vertical Control
  • Short run price competition and Cournot oligopoly
  • Dynamic price competition and tacit collusion, cartels
  • Empirical tests of oligopoly
  • Product differentiation
  • Entry and Exit Decisions
  • Limit pricing and predation
Learning Outcome

This course is 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. The goal of the course is that the students after having successfully participated in the course are 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 how vertical restraints work and what their effects are in terms of profits and welfare.
  • Describe the main theories of collusion and to identify factors that hinder and facilitate collusion.
  • Describe the main theories of entry, accommodation, and exit and to relate them to firms’ business strategies.
  • 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.

Syllabus
Please note that details of the syllabus and the course content may change.

Main textbook:

  • Belleflamme, Paul and Martin Peitz (2010), Industrial Organization: Markets and Strategies, Cambridge University Press.
  • Selected chapters.

Other texts:

Competencies and knowledge from participating in Micro 1-2-3 (Micro A, B, C) or equivalent.
2 hours of lectures and 2 hours of classes per week for 14 weeks

Time and room:
Time and room for the lectures and exercise classes: Please press the link under "Se skema" (See schedule). 15F means Spring (Forår) 2015, 14E means Autumn (Efterår) 2014.
It is available partly in English at this link:
https:/​/​skema.ku.dk/​KU1415/​reporting/​textspreadsheet?objectclass=module&idtype=id&identifier=43783&t=SWSCUST+module+textspreadsheet&days=1-5&weeks=27-52&periods=1-68&template=SWSCUST+module+textspreadsheet

The first lecture in the springsemester will be the 3.rd of February 2015 at 13.00 o´clock (1.00 AM). The exercise classes begins in week 7.
  • Category
  • Hours
  • Class Exercises
  • 28
  • Exam
  • 3
  • Lectures
  • 28
  • Preparation
  • 147
  • Total
  • 206
Credit
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
A 3 hours written examination taking place at Peter Bangs Vej 36.
Aid
Without aids
Marking scale
7-point grading scale
Censorship form
External censorship
100 % censurship
Exam period
For the Spring semester 2015: From 26 May to 28 June 2015 Written exam will be the 27 of May 2015 The written exam takes place at Peter Bangsvej 36, 2000 Frederiksberg http://pc-eksamen.ku.dk/pc_exam More information is available at https://intranet.ku.dk/economics_ma/examination/Pages/default.aspx
Re-exam
Same as ordinary. But if only a few students have registered for the re-exam, the exam might change to an oral exam with a synopsis to be handed in. This means that the examination date also will change.
Criteria for exam assesment

The student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.