Economic Theory

2019/2020

Учебный год

ENG

Обучение ведется на английском языке

4

Кредиты

Кто читает:

Школа бизнес-информатики

Статус:

Курс обязательный

Когда читается:

2-й курс, 1, 2 модуль

Course Syllabus

Abstract

Economic Theory encompasses a broad spectrum of fields. This course focuses on Market Theory (Theory of Industrial Organisation), which is a necessity for future managers. This field is concerned with the study of competition. Market participants interact strategically in setting prices, investing in capacities, R&D, advertisement etc. If there are many firms, a market may become close to perfect competition. A market with a small number of firms is described as an oligopoly, which can turn into a monopoly if competitors merge. We will discuss pricing strategies, non-price competition, entry, network effects, innovations, antitrust policies

Learning Objectives

• Receiving a basic understanding of the Market Theory and its main developments

Expected Learning Outcomes

• Be aware of the basics of market structures theory: competition, monopoly, oligopolies
• Solve theoretical economic questions regarding perfect and imperfect competition
• Make a market analysis using the theoretical background
• Understand firms’ pricing strategies
• Participate in basic debates about competition and pricing
• Use basic analytical tools of market analysis

Course Contents

• Technology, costs and competition
  Microeconomic concept of a firm. Types of markets.
• Monopoly
  Definition of a monopoly. Linear pricing and inefficiency. Types of price discrimination
• Introduction to Game Theory
  Definition of a game. Nash Equilibrium. Normal and extended form games. Subgame perfection
• Basic Oligopoly Models
  Cournot, Stackelberg, and Bertrand models with homogenous good.
• Differentiation
  Hotelling linear city model and its extensions
• Anticompetitive Behaviour
  Entry deterrence. Price maintenance. Predatory pricing
• Mergers
  Horizontal and vertical mergers. Price and other vertical restraints
• Non-Price Competition
  Advertising. Investment in R&D
• Network Effects
  Markets with network externalities. Critical mass
• Behavioural IO
  Markets in behaviour economics. Consumer behaviour and consumer protection. Bounded rationality of actors

Assessment Elements

• Test 1
• Test 2
• Test 3
• Group presentation 1
• Group presentation 2
• Exam

Interim Assessment

• Interim assessment (2 module)
  0.4 * Exam + 0.15 * Group presentation 1 + 0.15 * Group presentation 2 + 0.1 * Test 1 + 0.1 * Test 2 + 0.1 * Test 3

Bibliography

Recommended Core Bibliography

• Belleflamme,Paul, & Peitz,Martin. (2015). Industrial Organization. Cambridge University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.cup.cbooks.9781107687899

Recommended Additional Bibliography

• Shy, O. (1995). Industrial Organization : Theory and Applications. Cambridge, Mass: The MIT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=11382