Rose-Hulman
Institute of
Technology
Industrial Organization
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Rose-Hulman Institute of Technology |
SV 353 Industrial Organization |
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| Department of Humanities & Social Sciences / Dr. Kevin Christ |
This course is an HSS Society and Values elective. SV151, Principles of Economics, is a prerequisite. The field of industrial organization is concerned with three broad areas of economic inquiry:
The internal organization, behavior, and business practices of firms within a market economy.
The conduct of groups of firms and the overall performance of industries.
Public policy towards firms and industries, specifically competition policy and economic regulation.
Primary Text: Cabral, Luis, Introduction to Industrial Organization, The MIT Press, 2000
Supplemental Text: Kwoka, John E., and Lawrence J. White, eds., The Antitrust Revolution, Economics, Competition, and Policy, Oxford University Press, 5th ed., 2009
Formatting guidelines for research paper
Schedule for Fall 2010:
| Date | Topic | Readings | Assignments |
| 2 Sept. | Nature and scope of IO | Cabral, chapters 1 - 3 | |
| 3 Sept. | Competition laws & policies | KW, 8 - 13; Rubinfeld | PS0, 1 - 5 |
| 6 Sept. | Market power & imperfect competition | Cabral, 5.1 and 6.4 | PS0, 6 - 10 |
| 7 Sept. | Competitive and contestable markets | Cabral, 6.1 - 6.3, 6.5 | PS1, 1 - 3 |
| 9 Sept. | SCP framework; measure-ment of market power | Cabral, chapter 9 | PS1, 4 - 5 |
| 10 Sept. | Vertical relations | Cabral, chapter 11; KW, 352 - 364 | PS1, 6 - 7 |
| 13 Sept. | Entry deterrence and predation | Cabral, 15.1 and 15.2 | PS1, 8 - 9 |
| 14 Sept. | Case studies: Microsoft, NFL | KW, case studies 20 (5th ed.) and 11 (4th ed.) | PS1, 10 |
| 16 Sept. | Case studies: Sprint, American Air | KW, case studies 8 (5th ed.) and 20 (4th ed.) | |
| 17 Sept. | Case studies: Toys R Us, State Oil | KW, case studies 16 and 17 (5th ed.) | PS1 Solutions |
| 20 Sept. | Exam 1, Part 1 | ||
| 21 Sept. | Exam 2, Part 2 | ||
| 23 Sept. | Game Theory I | Cabral, chapter 4 | PS2 |
| 24 Sept. | Game Theory II | Cabral, chapter 4 | PS2, 1 |
| 27 Sept. | Oligopoly I | Cabral, 7.1 - 7.4 | PS2, 2 - 3 |
| 28 Sept. | Oligopoly II | Cabral, 7.5 | PS2, 4 - 5 |
| 30 Sept. | Collusion | Cabral, chapter 8 | PS2, 6 - 7 |
| 1 Oct. | Mergers & Acquisitions | Cabral, 15.3; KW, 13 - 29 | PS2, 8 - 9 |
| 4 Oct. | Review | TBD | PS2, 10 |
| 5 Oct. | Case studies: Lysine, School Milk | KW, case studies 11 and 12 (5th ed.) | |
| 7 Oct. | Case studies: PSEG/Exelon, Arch Coal | KW, case studies 1 and 3 (5th ed.) | |
| 8 Oct. | Case studies: Baby food, Office supplies | KW, case studies 6 and 7 (5th ed.) | PS2 Solutions |
| 11 Oct. | Exam 2, Part 1 | ||
| 12 Oct. | Exam 2, Part 2 | ||
| 18 Oct. | Pricing with market power I | Cabral, 10.1 - 10.2 | PS3 |
| 19 Oct. | Price discrimination, nonlinear pricing | Cabral, 10.3 | PS3, 1 -2 |
| 21 Oct. | Pricing with market power II | Cabral, 10.4 - 10.5 | PS3, 3 |
| 22 Oct. | Differentiation | Cabral, chapter 12 | PS3, 4 |
| 25 Oct. | Advertising | Cabral, chapter 13 | PS3, 5 - 8 |
| 26 Oct. | Market structure & welfare | Cabral, chapter 14 | PS3, 9 |
| 28 Oct. | Technology & market structure |
Cabral, chapters 16 & 17 KW, 474 - 486 |
PS3, 10 |
| 29 Oct. | No Class | Work on your research papers! | |
| 1 Nov. | Regulation | Cabral, 5.2 - 5.3 | |
| 2 Nov. | Deregulation |
Handout Link to Frontline segment on California Electricity deregulation |
PS3, Solutions |
| 4 Nov. | Case studies: LePages, GE-Honeywell | KW, case studies 10 and 15 (5th ed.) | |
| 5 Nov. | Case studies: Credit cards, AOL-Time Warner |
KW, case studies 19 (5th ed.)
and 18 (4th ed.) John Kay column on regulatory capture |
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| 8 Nov. | Case studies: Schering-Plough, Intel | KW, case studies 9 (5th ed.) and 14 (5th ed.) | |
| 9 Nov. |
Case
studies: Trinko Bring laptops for in-class course evaluation! |
KW, case studies 14 and 18 (5th ed.) | |
| 11 Nov. | Exam 3, Part 1 | ||
| 12 Nov. | Exam 3, Part 2 | Paper: Final version |
| Outlines | Problem Sets | Helpful Links |
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