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Course Objective: |
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This course provides a foundation for the study of theoretical models of industrial organization. This field of study is primarily concerned with the various strategic objectives and interactions in elite markets, employing the techniques taught in the compulsory course on game theory. It also provides a theoretical framework for analyzing antitrust/competition policy, as well as other policies related to regulation, innovation, intellectual property rights and strategic business policy, which are also covered by other courses. |
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Course Outcomes: The students will be able to |
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1 |
Think analytically, using game theoretic tools, about the principal issues concerning oligopolistic markets, competition, |
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Apply them to the real world of industry. They would also be prepared to understand competition policy more naturally and foundationally. |
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Course Content: |
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UNIT I |
Static oligopoly models with homogenous and differentiated products. Strategic substitutes and strategic complements. |
10 hrs |
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UNIT II |
Dynamic models: Stackelberg and free entry. |
10 hrs |
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UNIT III |
Spatial models of horizontal and vertical product differentiation. |
10 hrs |
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UNIT IV |
Game Theory, Repeated game oligopoly: Stability and sustainability of cartels. |
10 hrs |
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UNIT V |
Entry and entry deterrence strategies : Entry Barriers, Entry, Accommodation, and Exit, “Information and Strategic Behavior, “Market Structure |
10 hrs |
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UNIT VI |
Vertically related markets and vertical contracts between firms. Research and Development, Advertising |
10 hrs |
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Internal Assessment: |
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CIA 1 |
Unit I, Unit II |
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CIA 2 |
Assignment submission and/or presentation |
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Text Books: |
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1. P. Belleflamme, M. Peitz: Industrial Organisation: Markets and Strategies, Cambridge University Press (2015) |
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2. L. Cabral: Introduction to Industrial Organization, MIT Press (2017) |
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Reference Books: |
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3. M. Armstrong, R. Porter: Handbook of Industrial Organization, Vol. III, North-Holland (2007) |
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4. O. Shy: Industrial Organization: Theory and Applications, MIT Press (1996) |
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5. J. Tirole: The Theory of Industrial Organization, MIT Press (1988) |
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- Teacher: Department of Economics