LOG745 Industrial Organization and Competition Policy (Autumn 2022)

About the course

The purpose of this course is to provide approaches for economic analysis of strategic interactions between firms operating in imperfectly competitive markets.

The main topics covered are the following:

• Market structures: from monopoly to perfect competiton. Market power and pricing
• Introduction to non-cooperative game theory: strategic and extensive-form games, Nash equilibrium, perfect and imperfect information games
• Oligopolistics markets: Cournot and Bertrand models. Stackelbeg model. Collusion
• Strategies to avoid or limit competition
• Product differentiation and advertising
• Price discrimination
• Vertical integration and vertical relationships
• Public regulation and natural monopolies

 

The course is connected to the following study programs

• Master of Science in Logistics
• Experience-based Master in Logistics
• Master of Science in Sustainable Energy Logistics
• Exchange programme - Master's level
• Master of Science in Sustainable Transport and Urban Mobility

Recommended requirements

Basic microeconomics

Reduction of Credits

This course’s contents overlap with the following courses. A reduction of credits will occur if one of these courses is taken in addition:

Course	Reduction of Credits
SØK710 – Industrial Organization	7.5

The student's learning outcomes after completing the course

Knowledge

Upon completing this course, the candidate:

• Has general knowledge of modern industrial economics theory
• Has in-depth understanding of strategic interactions of firms with respect to their production and pricing decisions
• Has understanding of why and how companies develop their competitive strategies related to product differentiation, price discrimination, and vertical integration 
• Has necessary knowledge and analytical tools to work through case studies of the real industrial companies using the market models from the course

Skills

Upon completing the course, the student will be able to:

• Structure and analyze problems within industrial organization by using relevant models
• Apply theoretical tools of industrial organization for the analysis of real markets and explain strategic behavior of market participants
• Analyze and discuss questions related to trade-offs between individual profit-maximization and social welfare
• Analyze and predict the effect of government measures (tariffs, subsidies) on market prices and quantities, social welfare, and economic efficiency

General Competence

Upon completing the course, the student will:

• Develop an understanding of the relevance of modern economic methodology for real companies 
• Develop a critical approach to the choice of relevant methods and theoretical tools for the analysis of real markets
• Understand principles and rationale behind governmental regulation

Forms of teaching and learning

3 hours of lectures per week. 2 hours of exercise classes every other week. 

Coursework requirements - conditions for taking the exam

• Mandatory coursework: Assignment(s)
• Courseworks given: 2
• Courseworks required: 2
• Presence: Not required
• Comment: Both assignments should be approved to be admitted to the final exam

Examination

• Form of assessment: School assessment
• Proportion: 100%
• Duration: 4 hours
• Grouping: Individual
• Grading scale: Letter (A - F)
• Supported material: One A4 sheet with handwritten notes

Syllabus

Pensumoversikt

• • LOG745 - Industrial Organization and Competition Policy