COURSE TITLE :

 

Industrial Economics and EU Industrial Policy

 

 

LECTURER :

 

Ass. Prof. Murat ÇOKGEZEN

 

 

OBJECTIVE:

 

Aim of this course is to introduce students to the theoretical and policy issues arising from the attempt to operate competitive, industrial and technology policies within the EU.

At the end of this course students should be able to : (i) demonstrate an understanding of the main theoretical issues concerning competitive, industrial and technology polices, (ii) apply these principles to an analysis of competitive, industrial and technology policies within EU; (iii) critically evaluate the policies which have evolved within the EU

 

 

MAIN TEXTBOOK:

 

Luis Cabral, Introduction to Industrial Organization, Cambridge, Mass.: MIT Press, 2000. 

 

 

GRADING METHOD:

 

Students will be evaluated on the basis of two exams. Weights for the purposes of grading are 40% for the midterm exam and 60% for the final. The students are expected to prepare an essay as a part of the final exam (20 points).

 

 

  

A SHORT DESCRITION AND PROBABLE WEEKLY SCHEDULE OF THE TOPICS TO BE COVERED DURING THE LECTURES

 

week

topic

description

 

1

Introduction

What is IO about?

 

2

The Firm do firms maximize profit, problems of seperation of ownership and control end the ways of coping with it. ders notlarý

3

Monopoly and Regulation

Monopoly, Monopoly = monopoly power?, Microsoft vs. the Court, Regulations (MC, AC, PC, ECPR), A tale of 2 market deregulation
 

4

Price Discrimination

Price discrimination: good or bad?

 

5

Collusion
Forms of collusion (Cartel, Secret agreement, Tacit collusion), Why don’t firms collude more often?, Market structure and collusion.
Multiple market contact
 

6

Networks and Standards

Midterm exam (one hour)

Network externality, excess inertia excess momentum, compatibility

 

7

Vertical Integration

Ways of vertical integration, should VI be legal?

 

8

Product differantiation

Horizantal and vertical differantiation, PD and market power

 

9

Advertising

Information, persuation, advertising intensity, price competition and advertising

 

10

Entry and Exit

 

Entry cost social welfare, entry deterrence, predation, mergers and acquisitions 

 
11-12 Seminar    

 

Final Exam