Summer 2022 - ECON 325 D100
Industrial Organization (3)
Class Number: 2702
Delivery Method: In Person
Course Times + Location:
Fr 10:30 AM – 12:20 PM
SSCB 9200, Burnaby
Exam Times + Location:
Aug 17, 2022
12:00 PM – 3:00 PM
SSCB 9200, Burnaby
Prerequisites:ECON 201 with a minimum grade of C-; 60 units.
Introduces students to the economics of imperfect competition. Topics covered include the theory of the firm, market structure, and various aspects of firm strategy such as pricing, advertising, product differentiation, and innovation. Related questions of public policy will also be addressed. Quantitative.
Industrial Organization may also be called Economics of Imperfect Competition. Take a firm with a considerable market power and find out how it behaves, and how it is internally organized. Look at a market where several such firms operate and find out its structure. Make a judgment about efficiency in the market. Come up with a good suggestion about a policy to address the market “imperfections,” or failures. These are the Industrial Organization themes.
Within these topics, more specific questions may be just about anything – from setting a price for a soft drink to a choice of a spouse to marry. While the latter may seem more useful, the former must be mastered first if you want to approach the life problems as an IO expert. We will work through the core topics such as price discrimination, choice of product quality and variety, basic oligopolistic market models, predatory conduct and collusions. We will then analyze some selected topics that may include mergers, advertising, use of information, research and development, patenting a product, or a theory of a firm.
- Market Structure, Market Power, & Costs
- Linear Price Discrimination Schemes
- Non-Linear Pricing Schemes
- Choice of Product Variety & Quality
- Static Games, Cournot & Bertrand Oligopolies
- Sequential-Move Games, First/Second-Move Advantage, Stackelberg Duopoly
- Entry Deterrence & Predatory Conduct
- Repeated Games & Collusions
- Online Quizzes 10%
- Assignments 35%
- Midterm Tests 25%
- Final Exam 30%
Lynne Pepall, Dan Richards and George Norman, Industrial Organization: Contemporary Theory and Empirical Applications (5th edition), 2014, Wiley-Blackwell Publishing.
Department Undergraduate Notes:
Please note that, as per Policy T20.01, the course requirements (and grading scheme) outlined here are subject to change up until the end of the first week of classes.
Final exam schedules will be released during the second month of classes. If your course has a final exam, please ensure that you are available during the entire final exam period until you receive confirmation of your exam dates.Students requiring accommodations as a result of a disability must contact the Centre for Accessible Learning (CAL) at 778-782-3112 or email@example.com.
***NO TUTORIALS DURING THE FIRST WEEK OF CLASSES***
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TEACHING AT SFU IN SUMMER 2022
Teaching at SFU in summer 2022 will involve primarily in-person instruction. Some courses may be offered through alternative methods (remote, online, blended), and if so, this will be clearly identified in the schedule of classes.
Enrolling in a course acknowledges that you are able to attend in whatever format is required. You should not enroll in a course that is in-person if you are not able to return to campus, and should be aware that remote, online, or blended courses study may entail different modes of learning, interaction with your instructor, and ways of getting feedback on your work than may be the case for in-person classes.
Students with hidden or visible disabilities who may need class or exam accommodations, including in the context of remote learning, are advised to register with the SFU Centre for Accessible Learning (firstname.lastname@example.org or 778-782-3112) as early as possible in order to prepare for the summer 2022 term.