Isabelle Brocas

Industrial Organization

• Course notes (not a substitute for attending class):


• Topic 1 - The demand side : some consumer theory


• Topic 2 - Pricing with and without market power


• Topic 3 - Monopoly power and price discrimination (Examples)
  Extra notes on the theory of 2nd degree price discrimination


• Topic 4 - The limits of monopoly power : the durable-good problem.


• Extra Topics - Other Concepts on pricing by a firm with market power


• Topic 5 - Oligopolistic competition


• Topic 6 - Barriers to entry (Examples)


• Topic 7 - Product differentiation (Examples)
  Extra notes on the theory of differentiation


• Topic 8 - Vertical integration (Examples)


• Extra Topics - Other Concepts of strategic behavior in IO settings


• In-class problem sets: Booklet (to be solved in class)


• Material to prepare for the first in-class exam:


• Assignment 1: Problem must be completed before being solved in class (short answers)


• Review 1: Summary of concepts to prepare for first in-class exam


• Sample 1: Exam questions to prepare for first in-class exam (short answers)


• Material to prepare for the second in-class exam:


• Assignment 2: Problem must be completed before being solved in class (short answers)


• Review 2: Summary of concepts to prepare for second in-class exam


• Sample 2: Exam questions to prepare for second in-class exam (short answers)


• Project:


• Project description: Piracy


• Guidelines to complete your project: this document will help you determine general interesting questions related to your market or firm analysis.

FAQ

• Which concepts are supposed to be known before taking that course? Concepts introduced in ECON 303 are supposed to be known before attending that class. Some notes on perfect competition can be found here. For more on this topic or other topic related to 480, please refer to your ECON 303 class and textbook.


• Do we need to know Calculus? Yes. Here is a summary of basic elements of Calculus that need to be known.


• Do we need to know the basics of Game Theory? Yes. Here is a summary of basic elements of Game Theory that need to be known.


• Why do we have only sketches of solutions of the extra problems? This forces you to work through the solution by yourself. Most students only read the solution when it is given, resulting in low performance in the exam. Keep in mind that the methods to solve problems have all be reviewed several times in class and review sessions. The extra problems require the exact same methods.


• How is the final grade computed? The weights of the different assignments are detailed in the syllabus. Here is a toolkit to estimate your class performance. Remember that grades are not negotiable during or at the end of the semester.


• Example of past projects: The effect of Internet on competition, The introduction of iPhone , The real estate market in Los Angeles (a few guidelines), Media competition in the US: the case of newspapers..


• What if I am more advanced than other students in my class? Students with different backgrounds enroll in this class. It is not possible to teach at the preferred level of each student. Here are a few advanced topics for interested students:


• signaling games (application to signaling quality through prices).

ECON 480

Instructor