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2010/2011  KAN-OE21  Advanced Industrial Organization

English Title
Advanced Industrial Organization

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Mandatory
Level Full Degree Master
Duration One Semester
Course Period Spring
Time Table Please see course schedule at e-Campus
Max. participants 25
Study Board
Study Board for MSc in Advanced Economics and Finance
Course Coordinator
  • Anette Boom - Department of Economics
Main Category of the Course
  • Economics, macro economics and managerial economics
Last updated on 29 maj 2012
Learning Objectives
Students are required to:
  • • understand different models of oligopoly coordination and give an account of, why they arrive at different predictions,
  • • understand how horizontal mergers may be modelled and how the effect of a merger depends on fundamentals,
  • • understand how different vertical restraints complement or supplement each other in solving vertical coordination problems or how and when they may lead to foreclosure
  • • understand the literature on network effects and two-sided markets and solve models that involve such competitive forces
  • • master the basic techniques of structural empirical studies of industries with market power and of innovation and markets structure, and exemplify how the techniques may be used
Advanced Industrial Organization
Marking Scale 7-step scale
Censorship No censorship
Exam Period May/June
The exam has the form of four an individual 4-hour written closed book exam (approved calculators, but no computers are allowed during the written exam). Cf. the regulations of written exams at CBS. The exam is graded by a teacher (no censorship) on the 7-step scale.
Prerequisites for Attending the Exam
Course Content

The purpose of this course is to progress on some topics from the undergraduate teaching of Microeconomics and /or Industrial Organization (e.g. oligopoly coordination or vertical restraints) and to cover some additional topics (for example the economics of networks and two-sided markets, mergers, as well as R&D and innovation). The course will also cover the new empirical industrial economics that analyses real market behaviour on the basis of rigid IO theory. It is assumed that students are familiar with Intermediate Microeconomics.

Teaching Methods
Lectures, student workshops, presentations in class, and exercises

Paul Belleflamme and Martin Peitz (2010), Industrial Organization: Markets and Strategies, Cambridge et al.: Cambridge University Press and a collection of articles.