Sessions No | Topics |
1 | What is strategy
Evolution of Schools of thought on Strategy
SLEPT-SWOT-Five Force-Blue Ocean- Resource Based View-
Emergent View-Sustainable Competitive advantage |
2-3 | 1. Approaches to study Industrial Organisation
2. S-C-P Framework
3. New Empirical Industrial Economics
4. Characteristics of Different Market Structures
Perfect Competition, Monopoly, Monopolistic Competition and Oligoploy
Welfare costs associated with Monopoly
Cournot Model with Symmetric Costs
Comparison of Cournot Symmetric costs with Monopoly and Perfect Competition Industrial organisation |
4-8 | Game Theoretic Approach to Strategy
Game Theory - Introduction
Strategies in Practice
· Mix your plays
· Look before you leap
· Failure to Look Ahead
· Superiority of Punishment over reward
· To Lead or Follow
Examples and Stories in Games
· GPA Race
· Dating Game
· Brinkmanship Game
· Why Professors are mean
· We can’t take the Exam because we had a flat tyre
Signalling versus Screening
Defining a Game
Framework to Define a Game(PAPI Framework)
Matrix Representation of Game
Types of Games
Co-operative versus non-co-operative
zero-sum versus non-zero-sum
simultaneous or sequential
continuous versus discrete pay-offs
Prisoners’ Dilemma, and Deadlock games
Solution methods of games
Minimax Theorem for zero sum games
Iterated elimination of Dominated strategies(IESDS verus IEWDS);
Nash equilibrium.
Mixed Strategy Nash Equilibrium
Subgame Perfect Nash Equilibrium |
9 | Exercises on Game Theory
Introduction to Games with Continuous strategies
Solution concept to Games with continuous strategies
Difference between simultaneous versus sequential games with continuous strategies
The pricing problem of Lemonade stands- Second mover
Advantage equilibrium |
10-12 | Bertrand Model
Comparison between perfect competition,
Monopoly, Cournot and Bertrand Model
Cournot Limit Theorem
Cournot Model- Asymmetric costs
Leader-Follower (Stackleberg) Model
First Mover Advantage
Comparison of Cournot versus Stackleberg models
Cournot-Bertrand Model
Durable Goods Monopolist Model |
13 | Product differentiation
Market Share Effect versus Strategic Effect
Minimal versus Maximal Product Differentiation |
14 | Cartel
Coordination Problem in Cartels
Cartel Dilemma
Strategies to Protect Cartel
Market Division, Most Favoured Customer clause, Meet the Competition Clause |
15 | Advertisement
How important is advertisement for firms
Adverting intensity across time and industries
Purpose of Advertisement- Shift versus rotation of demand curve
Advertising Typology- Informative, Persuasive and Subjective Differentiation
Types of Goods - Search, Experience and Credence
Fit between types of good and kind of advertising
Mass marketing versus niche segment adverting
Predatory versus cooperative advertising
Dorfman and Steiner condition for optimal advertisingopolist |
16 | Entry Deterring Strategies
Taxonomy (Top dog, Fat Cat, Mad Dog, Puppy Dog etc)
Strategic Substitutes versus Strategic compliments
Tough versus soft commitments
Role of Fixed costs in entry deterrence
Optimal capacity for entry deterrence. |
17 | Strategic Entry Barrier
Tit for tat Pricing
Cooperative pricing |
18-19 | Strategic Interaction within Firms
Merger Typology
Merger Waves
Economies of Scope
Horizontal Integration
Economies of Scale
Economies of Scope
The Learning Curve
Multiplant firm vs Multiproduct firm
Vertical Integration
Fallacies for Vertical Integration
Importance of Transfer Pricing
Make versus Buy
Relationship specific assets
The holdup problem |
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20 | Summing up |