In this course we cover issues the microeconomics of firm behavior and market structure in detail. Game theory is used as the unifying concept for analyzing imperfectly competitive markets. The objective of this course is to expose students to the core theory of industrial organization. The course should help students to depend their understanding of the economics of firm behavior and the market structure, and develop analytical skills necessary to understand IO theory and apply it to real-world issues. The course will be useful for students entering the world of business/policy or considering further study of economics at the graduate level.A complete syllabus for the class is here.
Lecture Notes
Topic 01: Course Outline
Topic 02: Production
Topic 03: Costs
Topic 04: Perfect Competition
Topic 05: Monopoly
Topic 06: Measuring Market Structure and Power
Topic 07: Group Pricing
Topic 08: Personalized Pricing
Topic 09: Menu Pricing
Topic 10: Bundling
Topic 11: More on Bundling
Topic 12: Dominant Firms
Topic 13: Static Games
Topic 14: Cournot Oligopoly
Topic 15: Cournot Extensions
Topic 16: Bertrand Oligopoly
Topic 17: Bertrand Oligopoly Extensions
Topic 18: Dynamic Games
Topic 19: Stackelberg Oligopoly
Topic 20: Price Leadership
Topic 21: Patents
Topic 22: Regulating Monopoly
Assignments
Assignment 01: Due date is Thursday September 22 in class.
Assignment 02: Due date is Tuesday October 11 in class.
Assignment 03: Due date is Thursday October 27 in class.
Assignment 04: Due date is Tuesday November 15 in class.
Assignment 05: Due date is Tuesday November 29 in class.
Assignment 06: Due no later than Friday December 9.
Miscellaneous
Worksheet for Topic 06
Worksheet for Topic 09
Announcements
August 26: First class is on Tuesday August 30 at 1:30 in Huntsman Hall 180. See you there.
August 31: From Thursday our classroom has been switched to Eccles Business Building room 216.
September 28: Your first midterm is scheduled for Thursday October 6, in class. To help you prepare, here are four practice questions from previous midterm examinations. Please do not ask for solutions, the questions and how to best answer them, are for you to ponder. On Tuesday October 4 there will not be a class. You should use that time to prepare for the midterm.
November 23: Your second midterm is scheduled for Thursday December 1, in class. To help you prepare, here are four practice questions from previous midterm examinations. Please do not ask for solutions, the questions and how to best answer them, are for you to ponder. Enjoy your Thanksgiving break.