ECONOMICS 4020: Industrial Organization
Fall 2014 - Syllabus
TuTh: 9:30 – 10:45, BC-302
Instructor:
Office:
Office Hours:
Phone #:
Fax #:
E-mail:
Home page:
Nicholas G. Rupp
Brewster A-437
TuWedTh: 3-4pm
252.328.6821
252.328.6743
ruppn@ecu.edu
http://myweb.ecu.edu/ruppn/
Description
Industrial Organization (IO) reviews and extends the material from Intermediate Microeconomics (ECON
3144). Upon completing this course you will gain a better understanding of the structure, conduct and
performance of a variety of American Industries ranging from tobacco, beer, to telecommunications and airlines.
The course is divided into four sections. The first reviews fundamental market structures: perfect competition &
monopoly. The second analyzes basic industrial organization concepts of the theory of the firm and market
concentration. The third looks at game theory and oligopolies. The fourth examines pricing policies along with
risk/uncertainty. Industry studies are extensively examined throughout the course.
Textbook
There are two textbooks for this class: Microeconomics, 7th Edition by Jeffrey M. Perloff. (Money saving tip,
you can also use an older edition like 5th edition and it costs less than $10 used:
http://product.half.ebay.com/Microeconomics-by-Jeffrey-M-Perloff-2008-Hardcover/64341419&tg=info). The
Structure of American Industry, 12th Edition by James Brock (about $50 used: at www.bn.com; www.half.com;
or about $60 new at www.amazon.com... Ebook is also available on amazon)
Grading
Semester grades will be determined by industry studies quizzes (22%), homework (12%), and three tests each
worth (22%). Since I am very generous person, I will drop your lowest homework and lowest quiz. The final
course grade will be based on a ten point grading scale as follows: A = 90 - 100, B = 80-89, C = 70-79, D = 6069, F < 60. Poor performance is not a justifiable reason for an incomplete. No make-up quizzes will be given.
Homework can be submitted either at the start of class or in an envelope on my office door: A-437 Brewster
building.
Extra Credit, Cell phones & Calculators
Each test I provide the chance to earn extra credit. To be eligible to answer the extra credit questions you must
satisfy to criteria: (1) Your cell phone did not ring during class time (or during the test); and (2) you are taking
the test at the regularly scheduled class time. Simple (non-graphing) calculators are allowed for tests.
Text messaging
Students will not text-message during class. Repeat offenders will be asked to leave the classroom.
Attendance
Class attendance is optional, however, students who regularly skip class usually fail.
Tests: Three closed-book, closed-note tests will be given on the dates indicated below. If you cannot take a test
on the scheduled date, you must (1) let me know within 48 hours of the missed test, AND (2) provide
documentation for your absence. Failure to do EITHER (1) or (2) will result in a grade of 0 on the missed test.
No make-up tests will be given. Unexcused missed tests will result in a 0 on that test. The weight of an excused
missed test will be transferred to the final exam.
Americans with Disabilities Act
East Carolina University seeks to fully comply with the Americans with Disabilities Act (ADA).
Students requesting accommodations based on a covered disability must go to Disability Support
Services, located in Slay 138, to verify the disability before any accommodations can occur. The
telephone number is 252-737-1016.
Academic Integrity
All students that violate the ECU Student Honor Code (http://www.ecu.edu/studenthandbook/) will receive an
“F” in the course. All violators will be turned over to the Office of Student Rights and Responsibilities. All
students must sign an honor pledge for each test (unsigned tests will not be graded).
Retention Requirements
GPA Hours at ECU (identified in Transcript in Banner Self Service) plus transferred credit hours “Old” Retention Requirement All courses taken at ECU New Retention Requirements Effective with Fall 2011 grades GPA for all courses taken at ECU 1‐29 semester hours 30‐59 semester hours 60‐74 semester hours 75 or more semester hours 1.6 GPA 1.8 GPA 1.9 GPA 2.0 GPA 1.8 1.9 2.0 2.0 Weather emergencies
In the event of a weather or other emergency, information about the status of classes at ECU is
available the ECU emergency information hotline (252-328-0062) and on the ECU emergency alert
website (http://www.ecu.edu/alert).
Expectations about Student Conduct during Class: I expect every student to engage fully with the class
material during lecture. Students who engage in disruptive behavior during any class will be asked to leave and
will forfeit any points associated with graded work on that day. Students are not permitted to use cell phones
during class and should switch them off before class begins. It is not appropriate for students to play computer
games, work on facebook pages, or otherwise engage in recreational activity during class.
I pledge to prepare carefully, to offer worthwhile class material, and to treat every student with the respect that
they deserve.
Class
Dates
Chapter
Pages
Topic
1
26-Aug
2
28-Aug
7.1-7.2
179-193
Cost Curves in Short-run
2-Sep
7.3-7.5
193-215
Cost Curves in Long-run
3
4-Sep
8.1-8.2
220-230
Perfect Competition & Profit Maximization
4
9-Sep
5
11-Sep
Brock: 5
B: 128-154
6
16-Sep
8.3-8.4
230-256
Perfect Competition in Short-run & Long-run
7
18-Sep
9.1-9.2
262-272
Applying competitive model – Consumer Welfare (HW 1 due)
8
23-Sep
Brock: 1
B: 1-29
Industry Study: Agriculture (HW 2 due)
9
25-Sep
9.3-9.6
273-295
Appling the competitive model – Producer Welfare & Taxes
10
30-Sep
11.1-11.2
344-359
Monopoly (HW 3 due in Blackboard)
11
2-Oct
7-9
12
7-Oct
11.3-11.4
359-367
Monopoly
13
9-Oct
11.5-11.6
367-378
Monopoly
Introduction & Experiment
No class…go to your Monday class! (deadline to apply for Dec
graduation)
Industry Study: Beer (B = Brock)
Test #1 (Chapter 7-9; Beer, Agriculture) Test #1 Key
14-Oct
No class - Fall Break
14
16-Oct
12.1-12.3
384-404
Price Discrimination
15
21-Oct
Brock: 2
B: 30-57
Industry Study – Oil (Deadline to drop without a grade)
16
23-Oct
13.1-13.4
424-451
Oligopoly: Cartel & Cournot (HW 4 due)
17
28-Oct
13.5-13.7
451-455
Oligopoly: Stackelberg & Bertrand (HW 5 due in Blackboard)
18
30-Oct
Brock: 11
B: 294-329
19
4-Nov
13.8
456-462
20
6-Nov
11-13
21
11-Nov
14.1-14.2
468-475
22
13-Nov
Brock: 6
B:155-182
23
18-Nov
14.2
475-483
24
20-Nov
Brock: 4
B: 99-127
25
25-Nov
14.3
483-490
26
2-Dec
Brock: 9
B: 235-264
27
4-Dec
14.4
490-498
28
9-Dec
Brock: 12
29
18-Dec
14
Industry Study: Health Care
Monopolistic Competition (HW 6 due)
Test #2 (Chapter 11-13; Oil & Health Care) Test 2 Key
Game Theory – Introduction & Prisoner’s Dilemma
Industry Study: Autos
Game Theory – Mixed Strategies
Industry Study: Cigarettes
Game Theory – Sequential Games (HW 7 due)
Industry Study: Airlines
Game Theory – Auctions (HW 8 due)
Industry Study: College Sports
Final Exam
Test #3 (Chapter 14, Cigarettes, Autos, Airlines, College
8.00am – 10.30am Sports) Test 3 key
B = Brock, Structure of the American Industry. Textbook: Microeconomics, 7th edition: Jeffrey M. Perloff.
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