Industrial Organization I by klutzfu54


									                        The UNIVERSITY of WESTERN ONTARIO
                         LONDON                  ONTARIO

                                    Department of Economics

                                      Economics 364B-001
                                 Industrial Organization I

                                         Course Outline

Professor T. Chung                                                             January 2005
Office: SSC 4088
Phone: 679-2111 Ext. 85512


Office Hours: T. 1-3 p.m.

Undergraduate Enquiries: 661-3507


You are responsible for ensuring you are registered in the correct courses. If you are not
registered in a course, the Department will not release any of your marks until your
registration is corrected. You may check your courses on the Registrar's Office website at (choose "personal timetable"). If you notice a problem, please contact
your faculty academic counsellor right away.

Prerequisites Note

The prerequisite for this course is Economics 261, Intermediate Microeconomics II.
You are responsible for ensuring that you have successfully completed all course
prerequisites, and that you have not taken an antirequisite course. Lack of prerequisites may
not be used as a basis for appeal. If you are found to be ineligible for a course, you may be
removed from it at any time and you will receive no adjustment to your fees. This decision
cannot be appealed.

If you find that you do not have the course prerequisites, it is in your best interest to drop the
course well before the end of the add/drop period. Your prompt attention to this matter will
not only help protect your academic record, but will ensure that spaces become available for
students who require the course in question for graduation
Text:         Modern Industrial Organization by D. Carlton and J. Perloff,
              Pearson/Addison Wesley, 4th ed., 2005,

Companion Web Site:


Evaluation will be based on a midterm exam (20%), a final exam
(45%), an essay project (15%), and problem sets (20%). The midterm exam will be held in
mid February. The final exam is tentatively scheduled at 2 p.m. on April 22. A problem set
will be assigned approximately every other week (total five problem sets). Problem sets are
due at the beginning of the class, and no late problem set will be accepted. To allow some
flexibility of unforeseen contingencies, the lowest problem set score will be dropped in
determining the course grade. An essay is due on March 28. Late penalty will be imposed on
any late submission of the essay. Details on the essay requirement will be announced at the
class web page.

Description of the course:

"Industrial Organization" is the study of the structure of firms and markets and of their
interactions. While intermediate microeconomics analyzes idealized models of firms and
markets, "Industrial Organization" takes a more realistic look at them by adding several
wrinkles such as transactions costs, limited information, strategic behaviors, and so on.
Overview of the material

Part I.             Introduction and Theory

1.         Overview

2.         The firm and Costs

Part II.            Market Structures

3.         Competition

4.         Monopoly

5.         Cartel

6.         Oligopoly

7.         Monopolistic Competition

8.         Industry Stucture and Performance

Part III.           Business Practices: Strategies and Conduct

9.         Price discrimination

10.        Advanced Topics in Pricing

11.        Strategic Behavior

12.        Vertical integration

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