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JOHN CABOT UNIVERSITY

COURSE CODE: "EC 307"
COURSE NAME: "Industrial Organization"
SEMESTER & YEAR: Spring 2017
SYLLABUS

INSTRUCTOR: Francesco Ruscitti
EMAIL: [email protected]
HOURS: TTH 4:30 PM 5:45 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.

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.
SUMMARY OF COURSE CONTENT:

Note: Calculus and Principles of Microeconomics are both prerequisites for this course. Hence, knowledge of them will be assumed. In terms of the methodology of analysis, there are similarities between Intermediate Microeconomics and Industrial Organization.

Note: This is a preliminary draft of the syllabus. I will post (and hand out in class) the official version of the syllabus that will be much more detailed than this.

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.  For a list of tentative topics (time permitting) see below.

LEARNING OUTCOMES:

First and foremost, this course aims at helping students develop analytical skills, ability to reason in a rigorous manner, and ability to cross-over seamlessly between Microeconomics and Game Theory.

Referring to the learning outcomes (LOS) for the Economics and Finance major (that are posted online), by taking this course students will:



LOS 1: Build a solid understanding of and knowledge base in microeconomics and game theory.



LOS 2: Develop critical-thinking skills and learn to apply microeconomic analysis to understand economic events and everyday problems.



LOS 5: Develop adequate training in mathematical methods to develop problem-solving skills, perform proofs and prepare for further graduate studies in the areas of economics and finance.



LOS 6: Master solid communication skills that enable them to formulate a well-organized argument and communicate effectively in written and graphical form about specific economic and financial issues.

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, many international consulting companies seek prospective employers with a basic knowledge of Industrial Organization.

 

 

TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberCommentsFormatLocal BookstoreOnline Purchase
Industrial Organization. Theory and Practice (International edition, fourth edition)D. E. Waldman, and E. J. JensenPearsonISBN-10: 0133083772. ISBN-13: 9780133083774     
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Midterm exam 1The 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 2The 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 examThe 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 theoretical course that combines calculus, microeconomics and game theory. According to my own experience, it can be fairly challenging. If you miss too many classes, you will get lost and that would undermine your performance. Hence, attendance is STRONGLY ENCOURAGED and very beneficial.

EXAMS AND POLICY ON ABSENCES: Prior to the beginning of the semester, I will post on MyJCU and circulate the official version of the syllabus (very detailed) with the exact exam dates and all of the policies. There are no make-up for missed exams. If you happen to miss a midterm exam for a compelling reason (e.g., you are sick), I want you to notify me ahead of time (if possible) and I will ask you to provide me with a formal justification for your absence. You have to prove your claim about the cause of your absence. If I deem the justification is formal and legitimate, then I would let you take a make-up exam. Note: regarding the final exam, there are specific policies put in place by JCU, and I will comply with them.

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.
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.

SCHEDULE

 

TOPICS AND TENTATIVE SCHEDULE

(Please note that the list and schedule of the topics covered is tentative and might be subject to change. More details will be provided in class.)


 

Weeks

Topics

Reading Assignment

Exam Dates and topics covered (TBA)

Week 1

 

The firm and its costs (selected topics)

CHAPTER 2

 

Weeks 2 and 3

 

Competition and Monopoly (selected topics)

 

CHAPTER 3

 

Week 4

 

Monopoly practices (selected topics)

CHAPTER 5

 

Weeks 5 and 6

 

Game Theory: A Framework for Understanding Oligopolistic Behavior

(selected topics)

 

CHAPTER 7

 

Weeks 7, 8, and 9

 

The development of (oligopoly) theory (selected topics)

 

 

CHAPTER 8

 

Week 10

Collusion: the great prisoner’s dilemma (selected topics)

 

CHAPTER 9

 

Weeks 11 and 12

Monopolistic competition, product differentiation and advertising (selected topics)

 

CHAPTERS 13 and 14

 

Weeks 13, 14

Price discrimination (selected topics)

 

CHAPTER 16