Course Outline
EBB067A055: Microeconomics – Industrial Organization
2021/2022
This document is preliminary and subject to change. This version: November 8, 2021.
Course overview
In this course we discuss basic models of competition between firms, and strategies that
those firms can use to try to gain or maintain market power. We use tools from game
theory to teach you how to think strategically, and to teach you how firms can act
strategically. Hence, the course is relevant both for students that are interested in
Economics, as well as for students that are interested in Business.
The course consists of weekly online lectures and tutorials. These are not compulsory,
but if you want to stand a decent chance in passing this course, it is a very good idea to
attend all. The lecture will focus on the theory, and applications of the theory. The
tutorials will be in smaller groups and will focus on exercises. The exercises that will be
discussed can be found on Nestor, at least one week in advance. Needless to say, you
are expected to prepare the exercises. Also, it is a good idea to read the material before
the lecture.
Literature
The main text for this course is Cabral, L.M.B. (2017), Introduction to Industrial
Organization, 2nd edition, ISBN 9780262035941. Note that the book has changed a lot
since the 1st edition (which, for one thing, is already 19 years old!), so it is probably not a
good idea to use that one.
In the lecture we will discuss the main issues in Cabral, but also give some additional
background, and some applications of the theory. These applications will include
research of the microeconomics group at our faculty, which is very active in the field of
Industrial Organization. Needless to say, whatever is covered in the lectures is also part
of the material for the exam.
Lectures
The weekly lectures will be published each Wednesday night, before the week in which
the tutorials are scheduled. You can find them on our YouTube channel:
https://www.youtube.com/channel/UCvc9XJIYU4KFsv_di3nc0Mg
Tutorials
For the tutorials see https://rooster.rug.nl/#/en/current/schedule/course-EBB067A05.
In the week before the course starts, you can sign up for one of the tutorial groups.
Detailed schedule
Please note that this is preliminary and subject to change
Week 1: General introduction, Price Discrimination
Chapter 1
Section 5.3-5.6
Section 6.1-6.2
Week 2: Price Discrimination, Competition
Section 6.3 and 6.5
Section 7.1
Section 8.1
Week 3: Competition
Section 8.2-8.4
Week 4: Collusion and Price Wars
Section 7.3
Chapter 9
Week 5: Market Structure, Horizontal Mergers
Chapter 10
Chapter 11
Week 6: Market Foreclosure
Section 7.2
Chapter 12
Week 7: Vertical Relations, Platforms
Chapter 13
Evans, D.S., and R. Schmalensee (2007), “The Industrial Organization of Markets with
Two-Sided Platforms”, Competition Policy International, 3(1), pp. 150-179.
(available here)
The Team
Marco Haan
Lectures, tutorials, and course coordination
m.a.haan@rug.nl
Duisenberg 769
Nannette Stoffers
Tutorials
n.e.stoffers@rug.nl
Duisenberg 707
Mart van Megen
Tutorials
m.j.w.van.megen@rug.nl
Duisenberg 701
Helena Lei
Secretariat
h.lei@rug.nl
Duisenberg 743