Simon Fraser University
Engaging the World

Course Outlines

Fall 2023 - ECON 425 D100

Industrial Organization: Imperfect Competition (3)

Class Number: 5323

Delivery Method: In Person

Overview

  • Course Times + Location:

    Sep 6 – Dec 5, 2023: Wed, 2:30–5:20 p.m.
    Burnaby

  • Prerequisites:

    ECON 302 with a minimum grade of C-.

Description

CALENDAR DESCRIPTION:

An in depth examination of firm behavior in the context of imperfect competition. Topics covered may include: monopoly and oligopoly pricing; product differentiation; market power; entry deterrence; antitrust laws; and regulation. Emphasis will be given to covering a limited number of issues in detail rather than attempting a broad survey of industrial organization theories.

COURSE DETAILS:

The course analyzes oligopolistic markets with imperfect competition. We start with a brief review of some basic models, as already covered in ECON 302. Extended topics then include 1) the predatory conduct of firms in markets. What can an incumbent firm do to prevent market entry, or to drive out existing rivals? 2) Mergers and other contractual relations between firms: the course investigates horizontal and vertical mergers, discusses the welfare implications of these transactions, and studies exclusive dealing clauses such as those used in franchise agreements. Students are expected to have a good knowledge of elementary calculus, and of game theory. Also, students will present their term papers over the last week of classes.

 

Grading

  • Term exam 40%
  • In-class writing assignments (2) 20%
  • Group presentation 30%
  • Class participation 10%

Materials

RECOMMENDED READING:

L.Pepall, D.J. Richards and G. Norman, Industrial Organization: Contemporary Theory and Empirical Applications (5th Edition), Wiley, 2014. (One or two copies will be placed on reserve)
ISBN: 9781118250303

REQUIRED READING NOTES:

Your personalized Course Material list, including digital and physical textbooks, are available through the SFU Bookstore website by simply entering your Computing ID at: shop.sfu.ca/course-materials/my-personalized-course-materials.

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 caladmin@sfu.ca.

***NO TUTORIALS DURING THE FIRST WEEK OF CLASSES***

Registrar Notes:

ACADEMIC INTEGRITY: YOUR WORK, YOUR SUCCESS

SFU’s Academic Integrity website http://www.sfu.ca/students/academicintegrity.html is filled with information on what is meant by academic dishonesty, where you can find resources to help with your studies and the consequences of cheating. Check out the site for more information and videos that help explain the issues in plain English.

Each student is responsible for his or her conduct as it affects the university community. Academic dishonesty, in whatever form, is ultimately destructive of the values of the university. Furthermore, it is unfair and discouraging to the majority of students who pursue their studies honestly. Scholarly integrity is required of all members of the university. http://www.sfu.ca/policies/gazette/student/s10-01.html

RELIGIOUS ACCOMMODATION

Students with a faith background who may need accommodations during the semester are encouraged to assess their needs as soon as possible and review the Multifaith religious accommodations website. The page outlines ways they begin working toward an accommodation and ensure solutions can be reached in a timely fashion.