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Language of Instruction
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English
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Level of Course Unit
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Bachelor's Degree
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Department / Program
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BA Program in Economics
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Type of Program
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Formal Education
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Type of Course Unit
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Compulsory
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Course Delivery Method
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Face To Face
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Objectives of the Course
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Industrial organization is the study of how firms behave in markets with imperfect competition. The main objective of this course is twofold.
? The first goal is to develop an understanding about how firms exercise their market power—the ability to affect market outcome—in the absence of perfect competition. In various market settings, we will analyze critical decisions of a firm such as pricing, quantity and quality selection, product design, investment and R&D policies, and advertising etc. This will allow us to draw inferences about the welfare outcomes under different market structures.
? Our second goal is to study basic forms of interventions and regulations that governments can utilize to control market power and to promote competitive outcomes.
Strategic interaction will be an important concept throughout the semester. When a firm makes a business decision, it knows and takes into account that its decision will affect the business outcomes of the other firms in the market and that these firms will strategically react to this. When a regulatory agency designs a regulation policy, it knows and takes into account that the firms will adjust their decisions in response. These interdependencies create conflicts of interest between the market participants. Game theory provides an excellent toolbox to study these interactions.
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Course Content
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The objectives of this course are:
? To familiarize students with key questions in the field of industrial organization and regulation.
? To understand the notion of market power and its potential effect on the market participants.
? To introduce basic economic and strategic models of industrial organization using game theoretic solution concepts such as Nash equilibrium and subgame perfect equilibrium.
? To equip students to solve for the "equilibrium" in various models of markets including oligopolistic markets, markets with price discrimination and markets with vertical interaction.
? To enable students to use strategic thinking to predict market outcomes in simple settings.
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Course Methods and Techniques
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Prerequisites and co-requisities
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None
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Course Coordinator
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None
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Name of Lecturers
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Instructor Ayuba Napari ayubanapari@ihu.edu.tr
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Assistants
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None
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Work Placement(s)
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No
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Recommended or Required Reading
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Resources
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Waldman, D. E., & Jensen, E. J. (2016). Industrial organization: theory and practice. Routledge.
Carlton, D. W., & Perloff, J. M. (2005). Modern industrial organization. 4th(Global) Edition, Pearson Education Limited
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Course Notes
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The due date and time for each assignment will be specified. Late assignments will not be accepted. There will be no make-up exams unless approved by the administration and instructor.
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Course Category
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Mathematics and Basic Sciences
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%50
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Social Sciences
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%50
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