Industrial Organization

2023/2024

Academic Year

ENG

Instruction in English

6

ECTS credits

Delivered by:

Department of Applied Economics

Type:

Elective course

When:

4 year, 1, 2 module

Instructor

Kazakova, Ekaterina

Course Syllabus

Abstract

The course introduces the theory of industrial organization (IO) which focuses on the business behavior of firms, its implications for industry structures, and policies of industry regulation. More broadly, we look at the imperfect competition and strategic interactions of firms in different sectors and explain differences across industries. Among possible strategies, we will discuss pricing and production strategies; competition in innovations and cooperation in R&D; informative and persuasive advertising strategies; various anticompetitive practices: collusion, retail price maintenance, price discrimination, tying, exclusive clauses, predatory behavior and entry deterrence. You will become familiar with the main (static and dynamic) models of monopoly and oligopoly, horizontal and vertical product differentiation, models of asymmetric information. Moreover, we will analyze the industry structure and performance. You will study how to measure the market concentration and relate it to the level of competition. Particular emphasis will be given on the determinants and consequences of vertical and horizontal mergers. Throughout the course, we will always discuss possible ways of market regulation and related antitrust policies. Prerequisites: minimal grade 6 for Micro-1, Micro-2.