ECON 1460 - Industrial Organization




Industrial organization in the media

This article, sent to me by Will Hewson, has a little bit of everything: Bertrand competition, strategic interactions between large firms, attempts of collusion (via price guarantee), effects of price advertising, and all is brought together by an electronic marketplace and a holiday.


The following article that was sent to me by Will Hewson provides a recent example of how a firm creates entry barriers to competitors (rather than engaging in direct entry deterrence) by using the complementarities between different products.


Courtesy of Hakrim Kim are the next two articles about a potential merger between T-mobile (owned by Deutsche Telecom) and MetroPCS. It is interesting that the two firms do not share a technology, so they cannot use each other's infrastructure.


Another article from Hakrim Kim about pop-up stores to market the new MS Surface. Hidden in the article is a sentence referring to the proximity of the new stores and Apple stores, which brings us back to the Hotelling location models.


Will Hewson sent me this interesting article about the price of helium (thanks Will!). When we talk more about entry deterrence in a couple of weeks we'll see that having a large inventory is one of the ways an incumbent keeps entrants out of the market. http://www.npr.org/blogs/money/2012/09/28/161962626/the-weird-story-of-why-helium-prices-are-going-through-the-roof


Materials for talk on ad auctions: