325015 :Industrial Organization (Externe Organisatie)
(Industrial Organization (External Organization))

General info

Instruction language English
Type of Instruction Lectures and tutorials (No data available yet)
Type of exams Written exam (Examination schedule)
Level:Bachelor
Course load:6 ECTS credits
Blackboard InfoLink to Blackboard (When you see 'Guest are not allowed in this course', please login at Blackboard itself)

Lecturer(s)


prof. dr. E. Brouwer (Coordinator)


Objectives

Industrial Organization is the subfield of microeconomics that studies the behavior of firms in industries, in particular when competition is imperfect. For business students, it is crucial to understand the environment, being defined by technological, legal and other constraints, in which a firm operates in order to find the optimal decision for a firm with certain characteristics in a certain competitive situation. Studying industrial organization trains the students in identifying the crucial regularities of industries that drive market outcomes. Therefore, a thorough understanding of industrial organization makes students better managers, entrepreneurs, or consultants.


Contents

The course consists of two main parts: imperfect competition and business practices. In both parts we study strategic situations, where strategy is defined in the game theoretic sense, as interaction of at least two parties whose actions influence the other parties' payoffs. The focus on models inspired by game theory is amended by case studies and findings of empirical research.
Specifically, the course covers the following chapters:

1. Introduction
2. The Firm and Its Costs
3. Competition, Monopoly, and Market Structure
4. Monopoly Practices
5. Empirical Industrial Organization
6. Introduction to Game Theory
7. Imperfect Competition
8. Cartels and Collusion
9. Pricing Strategies
10. Product Differentiation
11. Nonpricing Strategies
12. Advertising


Specifics

Industrial Organization is a thrilling and highly relevant subject for future executives, entrepreneurs, consultants, and other would-be decision makers in firms and other organizations. Yet, it is a complex field of study. Therefore, it is expected that the students, in addition to attending the lectures, engage in extensive self-study of the material covered in class. This includes in-depth reading of the relevant chapters of the textbook (see below), ideally before class, and independent solving of the discussion questions and problems stated at the end of the textbook chapters. (Note that answers to odd-numbered problems can be found at the end of the textbook.)

Replying to student requests, for the first time this year there will be six tutorial sessions accompanying the lectures and self-studying. Students will have the opportunity to send e-mails to the teaching assistant and raise questions on problems and discussion questions from the textbook. During these tutorials, these questions (and others deemed fundamental by the instructors' team) will be discussed.

It is strongly encouraged that students independently form small teams that meet at least once a week and discuss their ideas, approaches, and solutions to these discussion questions and problems. As a side-effect, this procedure trains the students in working in a team and in presenting their thoughts and solutions to a small audience.

Grading
Final exam: 100%
Resit exam: Replaces the grade of the final exam (if better than the final exam).

Exams will be multiple choice and balance verbal and mathematical questions. They will be based on the material covered in class and tutorial sessions and the respective material and exercises covered by the textbook.


Compulsory Reading

  1. Waldman, Don E., and Elizabeth J. Jensen, Industrial Organization: Theory and Practice, Prentice Hall, 2013, 4th edition.
  2. Lecture slides.


Compulsory for

  • Minor Management ( 2012, 2013, 2014 )
  • Pre-master Strategic Management (Dutch "HBO" graduates) ( 2014, 2015 )
  • Free Minor ( 2013 )


Recommended option for

(25-aug-2017)