|Course code module||FTEBAEB200|
|Study load (hours)||168|
|Language of instruction:||Dutch|
|Semester exam information:||exam in the 2nd semester|
|Contract restriction information:|
Introduction to General Economics
FTEBAAE100 Introduction to General Economics
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).
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.
Schriftelijk met mondelinge toelichting
zonder mondelinge toelichting
4. Teaching method
Direct contact: LecturesExercise sessions
Personal work: ExercisesAssignments - individualAssignments - in group
5. Assessment method
Exam: Written, with oral presentationClosed 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