Masaryk University – Brno
Department of Corporate Economy – Faculty of Economics and Administration
Lipová 507/41a, Pisárky, Brno
http://home.cerge-ei.cz/tashpulatov/Teaching.html
Industrial Economics
Syllabus – Fall Semester 2013
Instructor:
E-mail:
Language of Instruction:
Lectures:
Seminars:
Office Hours:
Semester:
Exam Period:
Sherzod Tashpulatov
stashpul@cerge-ei.cz
English
Room S4, Mondays, 7:40–9:15
Room S3, Mondays, 11:05–12:45
Mondays, 9:30–11:00
Fall 2013 (16.09.2013–13.12.2013)
02.01.2014–14.02.2014
Course Description: The course presents key topics and applications of Industrial Organization
as a major field of modern Microeconomics.
Learning Strategy: During the lectures students become acquainted with unified methodology for
rigorous analysis of market structures, strategic conflict, and industrial development. The course
aims to help students describe, interpret and predict the competitive behavior of a firm and its
business outcomes. In addition, the course also considers tools for normative analysis of the
markets’ social efficiency. Respectively, some of the topics include possible competition policy
implications relating to promotion of competition through market regulation and anti-trust
actions. In order to pass the course successfully, students should develop ability to identify the
key characteristics of a particular market situation, to relate these to one of the main standard
models studied in class and to apply that model in finding the correct market equilibrium solution
according to the theory.
Prerequisites: Calculus, Microeconomics I
Grading: The overall course grade is based on two quizzes (5% for each quiz), class participation
(10%), four homework assignments (5% for each homework assignment), midterm exam (20%),
and final exam (40%).
Teaching Strategy: The course is taught in English and is based on specialized foreign literature
sources which might not be generally available in the university bookstore or library. However,
students are not required to use the original textbooks to prepare for the course. Instead, before
each lecture students will receive printed out presentations slides on which they can write further
additional notes. In order to understand and master the course, it is necessary to actively attend
lectures, tutorial sessions, and solve homework assignments.
Masaryk University – Brno
Department of Corporate Economy – Faculty of Economics and Administration
Lipová 507/41a, Pisárky, Brno
http://home.cerge-ei.cz/tashpulatov/Teaching.html
1. Course Outline:
Week Topic
Lecture 1 1.1. The Firm and Costs (Carlton&Perloff, Ch. 2)
Tutorial Session 1 1.2. Cost Concepts for Multiproduct Firm
Lecture 2 2.1. Competition (Carlton&Perloff, Ch. 3)
Tutorial Session 2 2.2. Long-run Equilibrium in a Competitive Market with High- and Low-cost Firms
Lecture 3 3.1 Monopoly (Carlton&Perloff, Ch. 4)
Tutorial Session 3 3.2. Monopsony, Comparison between Perfect Competition and Monopoly Equilibria
Lecture 4 4.1. Dominant Firm with a Competitive Fringe (Carlton&Perloff, Ch. 4)
Tutorial Session 4 4.2. Price Rigidity with Dominant Firms
Lecture 5 5.1. Cartels (Carlton&Perloff, Ch. 5)
Tutorial Session 5 5.2. Equilibrium outcome with non-cartel firms
Lecture 6 6.1. Non-cooperative Markets (Carlton&Perloff, Ch. 6)
Tutorial Session 6 6.2. Cournot and Stackelberg equilibria
Lecture 7 7.1. Monopolistic Competition: Product Differentiation (Carlton&Perloff, Ch. 7)
Tutorial Session 7 7.2. Midterm Exam
Lecture 8 8.1. Information, Advertising and Disclosure (Carlton&Perloff, Ch. 13, 14)
Tutorial Session 8 8.2. Salop Circular Location Model
Lecture 9 9.1. Strategic Behavior (Carlton&Perloff, Ch. 11)
Tutorial Session 9 9.2. Information Asymmetry: Tourists & Natives Model
Lecture 10 10.1. Research and Development (Carlton&Perloff, Ch. 16)
Tutorial Session 10 10.2. Price Discrimination
Lecture 11 11.1. Pricing Tactics (Carlton&Perloff, Ch. 9, 10)
Tutorial Session 11 11.2. Predatory Pricing
Lecture 12 12.1. Vertical Integration and Restrictions (Carlton&Perloff, Ch. 12)
Tutorial session 12 12.2. Antitrust Laws: Mergers and Entry Barriers (Carlton&Perloff, Ch. 19)
Lecture 13 13.1. Regulation and Deregulation (Carlton&Perloff, Ch. 20)
Tutorial session 13 13.2. (Preliminary) Final Exam
Literature:
1. Carlton, D.W. and J.M. Perloff, Modern Industrial Organization, Addison Wesley Longman, 2000.