SSC 261 Theory of Firm, Industry and Competition

Content

This course extends the analysis of the firm and market structure (SSC 161 Microeconomics) with greater technical and mathematical detail, and by adding insights from game theory, theory of principal and agent, transaction cost economics, economic sociology and behavioural economics.  The course continues with an analysis of imperfect competition: oligopoly, Bertrand and Cournot competition, homogenous and differentiated products, monopolistic competition and location analysis.  An investigation of the classical structure-conduct-performance paradigm is accompanied by a study of concentration and mergers.  The study of industrial organisation concludes with research and development, compatibility and standards, advertising, quality, durability, warranties, pricing and marketing tactics.  A survey of competition theory discusses workable competition, the Chicago School of Economics, Austrian economics and contestable markets.  The course includes an investigation of empirical methods in industrial economics and an economic analysis of European competition law.

Instructor

Dr. Bert Mosselmans

Track

Economics

Period

Fall / 2008

Course Material

• Shy, Oz (1995). Industrial Organization.  Theory and Applications.  Cambridge: MIT

Prerequisites

One needs to have followed one of the following courses in order to take this course:

• SCI 110 Elementary Calculus - Concepts & Connections
• SCI 111 Mathematical Ideas and Methods in Contexts

Required for

This course is required in order to take the following courses:

• SSC 361 Games and Information
• SSC 365 Strategic Management and Marketing
• SSC 360 Economic Growth, Development and Transition