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Student Learning Outcomes

1. Be able to appreciate the use of game theory to study conduct of firms under varying market structures.
2. Be able to learn the Importance of strategic commitment
3. Be able to learn the factors that governs horizontal and vertical integration
4. Be able to appreciate strategies firms adopt either to deter or accommodate entry and the forces governing the same.
5. Be able to understand the welfare consequences of market power
Tentative Session Plan (To be modified for 3 credit)

Session-1	Market Structure and Market Power Characteristics of Different Market Structures Determinants of Market Structure Meaning and Measurement of Industry Concentration Measurement of Market Power
Session-2	Introduction to Game theory Concept of Nash Equilibrium Cooperative and Non Cooperative Games Simultaneous vs Sequential Games Subgame Perfect Nash Equilibrium
Session-3	Market Structure and Competition Quantity and Pricing decisions under different market Structures Perfect Competition Monopoly Monopolistic competition
Session 4 and 5	Quantity and Pricing decisions under Oligopoly Structures Cournot Competition Bertrand Competition Bertrand Paradox Dynamic Cournot Model or Stackleberg Model Cournot model with n-Firms Cournot Limit Theorem
Session 6	Cournot equilibrium with asymmetric costs Bertrand Model with Multi characteristic differentiation Cournot-Bertrand Model Coase Conjecture
Session 7	Product Differentiation Characteristic approach and product Space Location based model Market Share Effect and Strategic Effect Minimum vs maximum Product differentiation Resolution of Bertrand Paradox
Session-8 and 9	Entry Deterrence and accommodation Strategic Choice of Capacity Limit Pricing Predatory Pricing Capacity Expansion Strategic Commitment and taxonomy of strategies
Session-10	Dynamics of Pricing Rivalry Tit for Tat Pricing Cooperative Pricing Condition for voluntary monopoly pricing by competitors
Session-11 and 12	Strategic Interaction within Firms 5.1. Horizontal Integration Economies of Scale Economies of Scope The Learning Curve Multiplant firm vs Multiproduct firm 5.2 Vertical Integration Fallacies for Vertical Integration Importance of Transfer Procing Make versus Buy Relationship specific assets The holdup problem
Session-13	Advertising Advertising in a monopoly Market Advertising in a duopoly Market Cartels Coordination problem in Cartels
Session-14	Summing Up

Evaluation Pattern
Quizzes- 30%
Mid Term-30%
End Term-40%
Reference Books

Economics of Strategy - Besanko, Dranove and Schaeffer -6th Edition
Introduction to Industrial Organisation -Cabral
Managerial Economics and Business Strategy - Baye
Industrial Organisation - A Strategic Approach - Church and Ware
Modern Industrial Organisation- Carlton and Perloff
Industrial Organisation- Competition, Strategy and Policy- Lipczynski, Wilson and Goddard
Industrial Economics- Economic Analysis and Policy -Martin
New Perspectives on Industrial organisatuion- Tremblay and Tremblay
Created By: Alora Kar on 02/28/2014 at 11:45 AM
Category: BM-II Doctype: Document