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JOHN CABOT UNIVERSITY
COURSE CODE: "EC 307"
COURSE NAME: "Industrial Organization"
SEMESTER & YEAR:
Fall 2015
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SYLLABUS
INSTRUCTOR:
Francesco Ruscitti
EMAIL: [email protected]
HOURS:
MW 3:00 PM 4:15 PM
TOTAL NO. OF CONTACT HOURS:
45
CREDITS:
PREREQUISITES:
Prerequisites: EC 201, MA 198; Recommended: EC 301
OFFICE HOURS:
Before class (after class as well, whenever possible) and by appointment. To make an appointment, just approach me in class or send me an email ahead of time.
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COURSE DESCRIPTION:
This course focuses on the analysis of economic markets from a microeconomic perspective. It provides an 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. The following topics will be covered: the firm and costs, competition, monopoly, dominant firms, cartels, non-cooperative oligopolies, monopolistic competition, price discrimination, strategic behavior; vertical relations, information, advertising, and disclosure. Finally, the course will review antitrust laws and policies, and students will discuss antitrust cases in class.
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SUMMARY OF COURSE CONTENT:
Industrial organization is the study of industries
structure and firm behavior. Using the basic tools of microeconomic theory and
game theory, this course explores the economic dynamics in an industry or
across industries by examining the nature of strategic interaction among firms.
The central issues concern firms' strategic choices of price and quantity in
markets where the assumption of perfect competition does not hold. Tentative topics
to be covered include: the firm
and its costs; monopoly and regulation;
perfect competition, oligopolistic competition, collusion, market structure and
market power, price and non price strategies, entry costs, market structure and
welfare; monopolistic competition and
product differentiation.
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LEARNING OUTCOMES:
First and foremost, development of
analytical skills, ability to reason in a rigorous manner, and ability to
cross-over from Micro to Game Theory and from Micro to Algebra and Calculus.
1. To understand how price and
non-price competition among firms affect economic outcome and welfare.
2. To analyze and evaluate models of
competitive, oligopolistic, and monopolistic markets.
3. To analyze how regulation and
economic policy can in principle improve upon the market outcome.
The knowledge that students acquire through
this course is useful for further study of firms and markets as well as the
effects of regulatory and legal systems (such as antitrust law or competitive
policies) on firms strategies. The topics
covered are useful not only for an academic career, but also to work in private
enterprises, including financial and legal institutions; in federal and state
regulatory agencies, and in the field of international trade. Nowadays, several
international consulting companies seek prospective employers with a basic
knowledge of Industrial Organization.
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TEXTBOOK:
| Book Title | Author | Publisher | ISBN number | Library Call Number | Comments | Format | Local Bookstore | Online Purchase |
| Industrial Organization. Theory and Practice (International edition, fourth edition) | D. E. Waldman, and E. J. Jensen | Pearson | ISBN-10: 0133083772. ISBN-13: 9780133083774 | | | | | |
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REQUIRED RESERVED READING:
RECOMMENDED RESERVED READING:
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GRADING POLICY
-ASSESSMENT METHODS:
| Assignment | Guidelines | Weight |
| Midterm exam 1 | The exam will be worth 100 points. It will cover all the material taught up until the class before the exam day. The questions will be open-ended questions and numerical problems (I might give theory questions as well). Regardless of the format, the nature of the questions will be analytical. | 18% |
| Midterm exam 2 | The exam will be worth 100 points. It will cover all the material taught from midterm exam 1 onward. The questions will be open-ended questions and numerical problems (I might give theory questions as well). Regardless of the format, the nature of the questions will be analytical. | 34% |
| Final exam | The exam will be worth 100 points. It will be cumulative, that is it will be about all the material covered throughout the course. The questions will be open-ended questions and numerical problems (I might give theory questions as well). Regardless of the format, the nature of the questions will be analytical. | 48% |
-ASSESSMENT CRITERIA:
AWork 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 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. 93-100: A. 90-92.99:A-
BThis is highly competent level of performance and directly addresses the question or problem raised.There is a demonstration of some ability to critically evaluatetheory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture andreference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments. 86-89.99: B+ 83-85.99: B 80-82.99: B-
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings. 75-79.99: C+ 70-74.99: C 65-69.99: C-
DThis 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. 60-64.99: D+ 55-59.99: D. 50-54.99: D-
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant. Below 50: F
-ATTENDANCE REQUIREMENTS:
Industrial
Organization is a theory course that can be fairly challenging. Hence,
attendance is STRONGLY ENCOURAGED and very beneficial. POLICY ON ABSENCES: Ahead of the beginning of the semester, I will post the definitive (and very detailed) version of the syllabus with the exact exams dates. In general, there will be no make-up for missed exams. If, for any compelling reason, you happen to miss a midterm exam, I want you to notify me ahead of time (if possible), and I would ask you to provide me with a formal and valid justification for the absence. If I deem the justification is legitimate and merits attention, then I would let you take a make-up exam. Note: Specific policies on the final exam are put in place by JCU and I shall comply with them.
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ACADEMIC HONESTY
As stated in the university catalog, any student who commits an act of academic
dishonesty will receive a failing grade on the work in which the dishonesty occurred.
In addition, acts of academic dishonesty, irrespective of the weight of the assignment,
may result in the student receiving a failing grade in the course. Instances of
academic dishonesty will be reported to the Dean of Academic Affairs. A student
who is reported twice for academic dishonesty is subject to summary dismissal from
the University. In such a case, the Academic Council will then make a recommendation
to the President, who will make the final decision.
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STUDENTS WITH LEARNING OR OTHER DISABILITIES
John Cabot University does not discriminate on the basis of disability or handicap.
Students with approved accommodations must inform their professors at the beginning
of the term. Please see the website for the complete policy.
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SCHEDULE
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Weeks
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Topics
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Reading
Assignment
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Exam
Dates and topics covered
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Week 1
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The firm
and its costs (selected topics)
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CHAPTER
2
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Weeks 2 and 3
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Competition
and Monopoly (selected topics)
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CHAPTER 3
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Week 4
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Monopoly practices (selected
topics)
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CHAPTER 5
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Weeks 5 and 6
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Game
Theory: A Framework for Understanding Oligopolistic Behavior
(selected
topics)
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CHAPTER 7
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Midterm 1 date: TBA
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Weeks 7, 8, and 9
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The
development of (oligopoly) theory
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CHAPTER 8
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Week 10
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Collusion:
the great prisoner’s dilemma (selected topics)
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CHAPTER 9
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Weeks 11 and 12
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Monopolistic
competition, product differentiation and advertising (selected topics)
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CHAPTERS 13 and 14
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Midterm 2 date: TBA
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Week 13
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Price discrimination (selected topics)
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CHAPTER 16
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Week 14
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Review for final exam
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Final exam (cumulative): see the university schedule for date and time
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