Courses:

Industrial Organization and Public Policy >> Content Detail



Study Materials



Readings

The course will rely heavily on the required textbook by Jeffrey Church and Roger Ware, Industrial Organization: A Strategic Approach (Irwin McGraw-Hill, 2000, 1st edition). The text is denoted on the reading list as "C&W." Occasional additional readings (typically short news articles) may be handed out in the lecture preceding their discussion. Students are encouraged to scan the Wall Street Journal, Financial Times, business section of The New York Times, or The Economist magazine for articles relevant to the topics covered in the course.


LEC #TOPICSREADINGS
1Overview & ReviewOverview of Course and Review of Basic Microeconomics
C&W, Chap. 1, 2, 3.1
2Recitation: Regression Basics
3Monopoly & Dominant FirmsMonopoly and Dominant Firms
C&W, Chap. 4

"Hard Profits: A Cement Titan in Mexico Thrives by Selling to the Poor—Cemex's Huge Market Share Lets It Keep Prices High, Expand Around the Globe." Wall Street Journal (April 22, 2002): A1.
4Game Theory 1: Static ModelsGame Theory Introduction
C&W, Chap. 7

Non-cooperative Oligopoly: Static Models
C&W, Chap. 8
5Recitation: Competitive Strategy Game
7Game Theory II: Dynamic GamesNon-cooperative Oligopoly: Dynamic Models
C&W, Chap. 9, 10.3-10.4
8Recitation: Dynamic Games
9Tacit Collusion: GE-Westinghouse HBS CaseCooperative Oligopoly and Tacit Collusion
C&W, Chap. 10 (remainder)

Harvard Business School Case. "General Electric v. Westinghouse in Large Turbine Generators." 9-380-128.
10Facilitating Practices & Cartel IntroductionCartels & Price-fixing
C&W, appendix (antitrust)

Salpukas, A. "An Oil Outsider Revives a Cartel." New York Times, Sunday, Oct. 24, 1999, Sec. 3, p. 1.

Sotheby's and Christy's
11Recitation: Dynamic Games
12Cartels & Price-fixing; Antitrust LawCartels & Price-fixing
C&W, appendix (antitrust)

Salpukas, A. "An Oil Outsider Revives a Cartel." New York Times, Sunday, Oct. 24, 1999, Sec. 3, p. 1.

Sotheby's and Christy's
13Antitrust Policy: Mergers & MonopolizationHorizontal Antitrust Policy- Mergers, Alliances, and Joint Ventures
C&W, Chap. 23, 19 (skim)

U.S. Council of Economic Advisors. "Realizing Gains from Competition." Chap. 3 in The Economic Report of the President. January 2002, pp. 99-143. (this reads quickly!).

"Oligopolies are on the Rise as the Urge to Merge Grows." Wall Street Journal (February 25, 2002): A1.

Airline Alliances: NW/CO/DL
  • DOT review.
  • Airline response: Done, Kevin. "US airlines on collision course with regulators." Financial Times, Jan. 21, 2003.
14Recitation: Cartels 
15Measuring Market PowerMeasuring Market Power
C&W, Chap. 12
16Oligopoly Pricing Strategies IStrategic Behavior in Oligopoly Markets
(Overview) C&W, Chap. 13

Pricing and Price Discrimination
C&W, Chap. 5

Nintendo in Europe: See the European Commission Ruling & Press Release, 30 October 2002.

Priceline: "How to Beat Priceline." Wall Street Journal (April 9, 2002): D1.

Internet Pricing and Search: Ellison, Glenn, and Sara Ellison. "Search, Obfuscation, and Price Elasticities on the Internet." MIT mimeo, 2001.
17Recitation: Exam 1 Review, PS 2 solutions
18Oligopoly Pricing Strategies IIPricing and Price Discrimination
C&W, Chap. 5

Nintendo in Europe: See the European Commission Ruling & Press Release, 30 October 2002.

Priceline: "How to Beat Priceline." Wall Street Journal (April 9, 2002): D1.

Internet Pricing and Search: Ellison, Glenn, and Sara Ellison. "Search, Obfuscation, and Price Elasticities on the Internet." MIT mimeo, 2001.
19
20Oligopoly Pricing Strategies IIIPricing and Price Discrimination
C&W, Chap. 5

Nintendo in Europe: See the European Commission Ruling & Press Release, 30 October 2002.

Priceline: "How to Beat Priceline." Wall Street Journal (April 9, 2002): D1.

Internet pricing and search: Ellison, Glenn, and Sara Ellison. "Search, Obfuscation, and Price Elasticities on the Internet." MIT mimeo, 2001.
21EntryEntry, Entry Deterrence
C&W, Chap. 14, 15, 16.1

Ghemawat, Pankaj. "Capacity Expansion in the Titanium Dioxide Industry." Journal of Industrial Economics 33, 2 (December 1984): 145-63.
22Recitation
23Entry DeterrenceEntry, Entry Deterrence
C&W, Chap. 14, 15, 16.1

Ghemawat, Pankaj. "Capacity Expansion in the Titanium Dioxide Industry." Journal of Industrial Economics 33, 2 (December 1984): 145-63.
24Predatory PricingPredation
C&W, Chap. 21

U.S. v. American Airlines, Memorandum and Order, April 27, 2001; Brief for Appellant, January 11, 2002. See also Complaint, May 13, 1999.

American Airlines Reply to DoJ Appeal
25Recitation
26Raising Rivals' CostsRaising Rivals' Cost
C&W, Chap. 20
27Product Choice 1: Spatial Models & CerealProduct Choice and Differentiation
C&W, 11 (differentiation), Chap. 4.3 (durability), 6 (quality), 16.2 (switching costs)

(Background, optional): Nevo, Aviv. "Measuring Market Power in the Ready-to-Eat Cereal Industry." Econometrica 69 (March 2001): 307-342. [Available on-line from Proquest]

"Chrysler Unveils New Warranty Deal." Detroit Free Press, July 7, 2002.
28Recitation: Spatial Competition Models; PS 3
29Product Choice 2: Quality, Durability & NetworksProduct Choice and Differentiation
C&W, 11 (differentiation), Chap. 4.3 (durability), 6 (quality), 16.2 (switching costs)

(Background, optional): Nevo, Aviv. "Measuring Market Power in the Ready-to-Eat Cereal Industry." Econometrica 69 (March 2001): 307-342. [Available on-line from Proquest]

"Chrysler Unveils New Warranty Deal." Detroit Free Press, July 7, 2002.
30Recitation
31AdvertisingAdvertising
C&W, Chap. 17

"Cigarette Makers in Discount War to Lock in Share." Wall Street Journal (September 23, 1998): B1.
32R&DR&D
C&W, Chap. 18

"Leading the News: Drug Study Finds Little Innovation." Wall Street Journal (May 29, 2002): A3.
33Recitation
34Internal Organization 1: Firm BoundariesInternal Organization and Theory of the Firm
C&W, Chap. 3.2-3.4
35Internal Organization 2: Firm BehaviorInternal Organization and Theory of the Firm
C&W, Chap. 3.2-3.4
36Recitation: CSG Debriefing
37Vertical StructureVertical Integration and Other Vertical Structures
C&W, Chap. 16.3-16.4, 22

"Big Tooth? Suit Says Dentsply has a Monopoly." Wall Street Journal (April 12, 2002): A13.
38Industry Discussion
39Review for Final Exam

 








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