Market and strategy

Academic year: 2008-2009 Course code module FTEBAEB200 Semester: 2nd semester Credits: 6 Study load (hours) 168 Theory (hours): 30,00 Practice/Exercises(hours): Other (hours): Part-time program: 2 Instructor(s) Jan Bouckaert Language of instruction: Dutch Semester exam information: exam in the 2nd semester Contract restriction information: 1. Prerequisites *Algemene competenties Introduction to General Economics   Microeconomics   *Sequentiality   FTEBAAE100 Introduction to General Economics   FTEBAAE220 Microeconomics 2. Objectives (expected learning outcomes) The student shall gain an understanding of the principal forms of imperfect competition. Moreover, the student shall be able to lay connections between theoretical insights and strategic behaviour in industry. 3. Course content Market and Strategy This course  offers an introduction to general topics in the theory of industrial organisations. This area of economics deals with the relationship between markets and enterprises, how certain markets and industries function, and how companies compete with one another.   Special attention is paid to strategic behaviour of companies. More specifically, the course deals extensively with models of competition, strategic product positioning, advertising, Research and Development… Imperfect competition between companies also receives due attention. In addition, the course considers models that can explain the industrial structure (e.g. entry and exit).   Central topics: When do companies possess market power? How can companies acquire and retain market power? What are the economic consequences of the existence of market power? Is there room for government intervention with a view to increasing public welfare?   This course uses the following chapters in Luis Cabral's book "Introduction to Industrial Organization" (2000, MIT Press):   Part 1: Introduction to concepts and methods   Ch 2: basic microeconomics Ch 3: The firm Ch 4: Games and strategy   Part 2: From Monopoly to Perfect Competition   Ch 5: Monopoly and regulation Ch 6: Perfect (and almost perfect) competition   Part 3: Oligopoly   Ch 7: Oligopoly Ch 8: Collusion Ch 9: Market structure and market power   Part 4: Price and nonprice strategies   Ch 10: Price discrimination Ch 11: Vertical relations Ch 12: Product differentiation Ch 13: Advertising   Part 5: Entry and exit   Ch 14: Entry costs, market structure, and welfare   Part 6: Technology   Ch 16: Research and development Ch 17 Networks and standards   The final session of the course is devoted to exercises.     4. Werkvormen Contactmomenten: Hoorcolleges Oefeningensessies Eigen werk: Oefeningen Opdrachten:Individueel Opdrachten:In groep   5. Evaluatievormen Examen: Schriftelijk met mondelinge toelichting Gesloten boek Schriftelijk werkstuk: zonder mondelinge toelichting 4. Teaching method Direct contact: Lectures Exercise sessions Personal work: Exercises Assignments - individual Assignments - in group 5. Assessment method Exam: Written, with oral presentation Closed book Written assignment: Without oral presentation 6. Compulsory reading – study material Luis Cabral, Introduction to Industrial Organization, MIT Press, 2000. 7. Recommended reading - study material Not applicable 8. Tutoring laatste aanpassing: last update: 30/03/2007 14:36 ann.aerts