Industrial organization (IO) is concerned with firms and industries, firm conducts, and economic performance of industries. The approach employed will be theoretical even though we will encounter many case studies. The first part of this course can be thought of as a continuation of Principles of Microeconomics, as we will study important topics we did not have time to analyze in EC 201. Of special interest is firms' strategic behavior with price and non-price competition. IO combines Microeconomics and Game Theory. However, EC 307 will be an introductory course, therefore I will keep the material as simple and elementary as possible. Nevertheless, the approach will be rigorous and analytical.  Industrial Organization has changed a great deal in the past two decades. Most importantly, it has evolved from a niche area in Economics to a discipline (very rich both theoretically and empirically) that is studied not only in itself, but also as an important conceptual support for other fields like finance, marketing and strategy.

This course focuses on the analysis of markets and industries from a microeconomic perspective. It provides a fairly in-depth analysis of the characteristics of the firm, the many ways in which firms interact within markets, and the policy instruments that are available to ensure that welfare is maximized.

Assessment Guidelines for assigning main letter grades: A, B, C,D, and F.

A:  Work of this quality directly addresses the question or problem raised and provides a coherent argument, displaying an extensive knowledge of relevant information or content. This type of work demonstrates analytical skills, and the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course.

B:  This is a competent level of performance and directly addresses the question or problem raised. There is a demonstration of some analytical skills and ability to critically evaluate theory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture and reference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments.

C:  This is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings.

D:  This level of performances demonstrates that the student lacks a coherent grasp of the material. Important information is omitted and irrelevant points included. In effect, the student has barely done enough to persuade the instructor that s/he should not fail.

F: This work fails to show any knowledge or understanding of the subject matter. Most of the material in the answer is irrelevant.