ECON 382(F) Industrial Organization

This course examines the interaction of firms and consumers in monopoly and imperfectly competitive markets. We begin with an investigation of how firms acquire market power. Using game theoretic models, we then analyze the strategic interaction between firms to study their ability to protect and exploit market power. Aspects of strategic decision-making that we shall study include: price discrimination, product selection, firm reputation, bundling and collusion. We conclude with a discussion of the role of anti-trust policy. Theoretical models will be supplemented with case studies and empirical papers. Format: lecture/discussion. Requirements: There will be several problem sets as well as a midterm and final examination. A group paper and presentation will also be required. Prerequisites: Economics 251 and preferably some familiarity with statistical analysis. Enrollment limit: 25 (expected: 15). Preference given to senior majors.