Industrial organization focuses on firm behavior in imperfectly competitive markets. Typical topics include the acquisition and use of market power by firms, strategic interactions among firms, and an introduction to noncooperative game theory.
Econ 476 students will be able to
- Analyze basic models of competition among firms producing homogeneous goods: competition, monopoly, Cournot oligopoly, Bertrand oligopoly, Stackelberg oligopoly.
- Apply basic game theory including solution concepts for normal and extensive form games.
- Demonstrate an understanding of extensions to these basic model, including supergames, models of product differentiation, and games of incomplete information.
- Apply these models to key issues in theoretical and applied industrial organization: mergers, collusion, advertising, R&D competition, antitrust policy, entry accommodation and entry deterrence, and business strategy.
- Discuss the role of government in the market in determining antitrust policy, patent policy, and regulation.
- Read, synthesize, and write short review papers on applied or empirical papers from the industrial organization literature.