COURSE TITLE:
Industrial Economics I
COURSE CODE:
ECON 3001
LECTURER:
Dr. Anne-Marie Mohammed
LEVEL:
III
SEMESTER:
I
NO. OF CREDITS:
3
PRE-REQUISITE(S):
ECON 2000, ECON 2001 and ECON 2002
COURSE DESCRIPTION/RATIONALE
This course introduces the student to industrial organization theory, traditional
and modern, the issues of structure and strategy in the modern business enterprise,
and the economic implications thereof.
LEARNING OUTCOMES
At the end of the course students should be equipped with the necessary
theoretical sophistication to enable them to gain a great deal of insight into firm
behaviour and public policy issues such as antitrust, regulation, deregulation and game
theory. Also, students should gain not only an understanding of theory and empirical
work in industrial organization but also have an appreciation of the importance of case
studies in expanding their knowledge of the field.
CONTENT
The students will be exposed along three main paths:
1,
2.
3.
The Basics of Industrial Organization,
Modern Industrial Organization: Game Theory and
Strategic Behaviour and Business Practices.
TEACHING METHODOLOGY
Two (2) Hours Lecture Session (using Power Point slides presentation).
One (1) Hour Discussion Session (open class discussions)
1
ASSESSMENT
The course work component of this course will count for 25% of the grade.
[Course work comprises: one written paper (15%) and one in-class quiz (10%).]
The final exam will count for 75%
[The final two-hour long examination comprises 4 questions to do 3]
REQUIRED READING:
INTRODUCTION
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I.
The Modern Corporation – Organization and Governance
Industrial Organization – A Historical Perspective
Theoretical Approaches – An Introduction
An overview of the world today and the development of industry and
industry leaders
Caribbean Industrial Organization – A Profile
Waldman and Jensen, Industrial Organization, 3rd Ed. Chapters: 1,3; Chapter 2.
Alfred Chandler, “Organizational Capabilities and the Economic History of the Industrial
Enterprise” Journal of Economic Perspectives, Summer 1992, pp.79-100.
Business Week, August 22/29 Special Double Issue on India and China
INDUSTRIAL ORGANIZATION – KEY ISSUES & THE TRADITIONAL
THEORY
-
The S.C.P. Paradigm
Market Structure / Elements of Market Structure;
Concentration
Barriers to Entry/Exit; Contestable Markets
Economies of Scale and Scope
Vertical and Horizontal Integration; Diversification
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Don Waldman and Elizabeth Jensen, Industrial Organization 3rd ed., Chapters 4-5;
pp.379-384; Chapters: 15-17;
II.
INDUSTRIAL ORGANIZATION – FIRM CONDUCT AND THE INTERACTION
OF FIRMS
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Oligopoly Theory and Modern Game Theory
Coordination, Alliances, Collusion and Cartel Theory
2
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III.
Don Waldman and Elizabeth Jensen, Industrial Organization 3rd Ed., Chapters: .6-12;
14;13
Eric Rasmussen, Games and Information, 3rd ed. Chapters: 1-4
Michael Marn Eric Roegner, Craig Zawada, The Price Advantage, Chapters: 2, 6, 12-13
BUSINESS STRATEGY
ORGANIZATION
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IV.
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V.
AND
THE
DYNAMICS
OF
INDUSTRIAL
Economic Theory and Business Strategy
Competitive Advantage
Technology and the Business System
The impact of the Internet and e-commerce
Michael Porter, Competitive Advantage, Chapters: 1 - 2
Orit Gadiesh & James Gilbert, “Profit Pools: A Fresh Look at Strategy” Harvard
Business Review. May-June 1998
George Day and David Reibstein, Wharton on Dynamic Competitive Strategy, Chapters:
1,5,6,10
Trevor Farrell “How Market Leaders lose their positions – Seven Lessons of Experience”
mimeo, 2002
Glenn Ellison and Sara Fisher Ellison, “ Lessons about markets from the Internet” The
Journal of Economic Perspectives, Spring 2005
THE ECONOMICS OF ORGANIZATION
-
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Product Differentiation
Pricing
Patents, Licensing and the use of Technology
Transaction-Cost Analysis and the Economics of Organization
Corporate Structure and its implications for Business Strategy
Networks and Markets
Oliver Williamson"The Modern Corporation, its Origins, Evolution and Attributes" Journal
of Economic Literature. Dec.1981
Ezra Zuckerman, “Review of “On Networks and Markets”, Journal of Economic
Literature, June 2003
Marco Iansiti and Roy Levien “Strategy as Ecology” Harvard Business Review, March
2004
MERGERS, ACQUISITIONS AND INTER-CORPORATE LINKAGES
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Mergers and Acquisitions
Joint Ventures, Strategic Alliances and other Intercorporate Linkages –
An Introduction
3
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P. Gaughan, ,Mergers, Acquisitions and Corporate Restructurings, Chapters: 1, 4, 10
James Bamford, David Ernst & David Fubini, “Launching a World Class Joint Venture”
Harvard Business Review, February 2004.
John Conlon and Melissa Giovagnoli, THE POWER OF TWO, Chapters: 1-3
VI.
PUBLIC POLICY AND REGULATORY ISSUES – AN INTRODUCTION
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Don Waldman and Elizabeth Jensen, Industrial Organization 3rd ed., pp.569-582;
Chapters: 19-20.
Dennis Carlton and Jeffrey Perloff Modern Industrial Organization 2nd ed. Chapters:
14,18,19, 21 or 3rd ed. Chapters: 13,17,18, 20
Trevor Farrell, “WASA: Why it has failed; What needs to be done” mimeo,2003
Severin Borenstein, “The Evolution of US Airline Competition” in Journal of Economic
Perspectives, 3,3(1989); also in Kuenne (ed.) Readings in Applied Micro-economic
Theory
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Dr. Anne-Marie Mohammed
2009:08:06
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