SYLLABUS: ECONOMICS 160
INDUSTRIAL ORGANIZATION
FALL 2011
INSTRUCTOR:
OFFICE:
PHONE:
FAX:
E-MAIL:
OFFICE HOURS:
WEB SITE:
CLASS HOURS:
Dr. Craig Gallet
Tahoe 3024
278-6099
278-5768
cgallet@csus.edu
T: 4:15-5:30pm, 8:20-8:50pm; TH: 1:15-2:30pm
http://www.csus.edu/indiv/g/galletc/
T: 5:30-8:20pm (Amador Hall 217)
PREREQUISITES: Economics 1B
MATERIALS:
Required: Industrial Organization: Theory and Practice, 3rd Edition,
by Waldman and Jensen.
Required: Transparencies to Accompany Lectures.
GRADING:
There are two options available to you in determining your grade for
this course. They are:
Option A
Option B
Three Exams
80%
60%
Six Quizzes
10%
10%
Homework Assignments
10%
10%
Paper
---20%
Percentage of Weighted Points Possible
90-100
80-89
70-79
60-69
< 60
Grade Range
A’s (A, A-)
B’s (B-, B, B+)
C’s (C-, C, C+)
D’s (D-, D, D+)
F’s
Note: If scores are below expectations, the instructor reserves the
right to “adjust the curve” accordingly.
Note: Initially, everyone will be placed under option A. However,
if you choose to write a paper (i.e., select option B), then you must
notify me of this change (via email) by October 14 (Friday). If you
choose option B, there is no “turning back”. That is, you must turn
in a paper or receive no credit for that component of option B (You
will not be graded under option A criteria if you elect option B.).
Certain criteria must be adhered to if you elect to write a paper.
They are:
• The paper must address a topic relevant to industrial
organization. For example, you might discuss firm behavior in a
particular industry. Here is a list of some past paper topics:
Cooperation in the U.S. Steel Industry
The Dominance of Disney in the Theme Park Industry
Entry and Exit in the Theme Park Industry
U.S. vs. European Antitrust Policy
The Growth and Decline of U.S. Steel
The Strategic Position of Microsoft
Is the NCAA a Cartel?
Factors affecting Price-Cost Margins in the Beer Industry
This Bud’s for You: So stop complaining about the quality of beer
Concentration in the airline industry
• Each person must have a unique paper topic. That is, no more
than one person may address a particular topic.
• All paper topics must be approved by me (via email) by
November 10 (Thursday).
• The paper must be at least 12 pages long (typed, double-spaced,
12 point font, one inch margins on all sides).
• In addition to content, the paper will be graded on grammar,
punctuation, and correct use of references. For example, since
plagiarism is unacceptable (see the university policy manual
regarding your consequences of academic dishonesty), you must
acknowledge the source whenever you use material from that
source. Also, make sure to have a title page with your paper.
• The paper is due in my office by December 9 (Friday).
Regarding the homework assignments, they are graded on a plus
(+), check (), or minus (-) system. As long as you receive a plus
or a check, then you will receive full credit. However, a minus
will give you no credit. Furthermore, no late homework’s will be
accepted.
Quizzes will consist of multiple choice and true/false questions.
Your lowest quiz score will be “dropped” and not factored into the
computation of your grade.
Regarding exams, they will consist of a mixture of multiple choice
and true/false questions, as well as a few short answer problems.
On exam and quiz dates, please bring a scantron sheet (Form No.
882-E) and a #2 pencil with you.
IMPORTANT DATES:
Quiz 1:
Quiz 2:
Exam 1:
Quiz 3:
Option B Notification:
Quiz 4:
Exam 2:
Option B Paper Topic:
Quiz 5:
Quiz 6:
Option B Paper Due:
Exam 3:
September 6
September 13
September 27
October 11
October 14
October 18
November 1
November 10
November 15
December 6
December 9
Finals Week (Dec. 12-16)
PURPOSE:
The purpose of this course is to introduce students to the area of economics known
as industrial organization (IO). As its name suggests, industrial organization focuses on
the organization (and interaction) of firms in industries.
How do firms behave in various industry settings? What are the factors that
contribute to firm behavior? What policies has the government used to modify firm
behavior? These have been the key questions industrial organization economists have
tried to answer. Following in the footsteps of these economists, this course will also
focus on these three questions.
LECTURE OUTLINE
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Economics Primer – Chapters 1 – 3
Game Theory Primer – Chapter 7
Market Definition and Structure – Chapter 4
Firm Conduct – Chapters 5 (skim), 8 – 10
Entry Deterrence – Chapters 11 and 12
Price Discrimination – Chapter 15
Empirical Methods – Chapter 6
Vertical Boundaries of the Firm – Chapter 16
Technological Change – Chapter 14
Buyer Concentration
More? We'll see