IO17
Advanced Studies in Industrial Organization Fall 2017
Lectures: (time and place only provisional - to be confirmed closer to the start of term)
Tuesdays: Building 83 Room 502, 3.30-4.45 pm
Thursdays: Building 16 Room 217, 3.30-4.45 pm
Aim:
To teach central methods for demand estimation used in empirical industrial organization, and programming (in Matlab) to implement these methods.
Prerequisites:
No particular background knowledge in industrial organization or programming is needed. Basic familiarity with concepts from econometrics, such as generalized method of moments and maximum likelihood, is useful.
Grading:
Final written exam 60%, final programming exam 40%
Background reading:
Joshua Angrist and Jörn-Steffen Pischke (2010): The Credibility Revolution in Empirical Economics: How Better Research Design is Taking the Con out of Econometrics, Journal of Economic Perspectives
Aviv Nevo and Michael Whinston (2010): Taking the Dogma out of Econometrics: Structural Modeling and Credible Inference, Journal of Economic Perspectives
Lectures are based on:
Kenneth Train (2009): Discrete Choice Methods with Simulation ch. 1.1-1.2, 2.1-2.3, 3 (especially 3.1, 3.6, 3.7.1), 6.1-6.2, 6.4, 6.6, Cambridge University Press
Steven Berry (1994): Estimating Discrete-Choice Models of Product Differentiation, RAND Journal of Economics
Steven Berry, James Levinsohn and Ariel Pakes (1995): Automobile Prices in Market Equilibrium, Econometrica
Aviv Nevo (2001): Measuring Market Power in the Ready-to-Eat Cereal Industry, Econometrica
Austan Goolsbee and Amil Petrin (2004): The Consumer Gains from Direct Broadcast Satellites and the Competition with Cable TV, Econometrica
Matthew Gentzkow (2007): Valuing New Goods in a Model with Complementarity: Online Newspapers, AER
Øyvind Thomassen, Howard Smith, Stephan Seiler and Pasquale Schiraldi (forthcoming): Multi-Category Competition and Market Power: A Model of Supermarket Pricing, AER
Software:
Link to register for an account with Mathworks in order to download your own copy of Matlab: https://www.mathworks.com/mwaccount/register (Free for SNU students, so use your snu.ac.kr email)