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2013/2014  KAN-AEF_AE50  Inter-firm Relations: Industrial Organization

English Title
Inter-firm Relations: Industrial Organization

Course information

Language English
Exam ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Course period Autumn
Time Table Please see course schedule at e-Campus
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Tat Kei Lai - Department of Economics (ECON)
Main academic disciplines
  • Economics, macro economics and managerial economics
Last updated on 02-07-2013
Learning objectives
This course analyses different relationships between the firm, its competitors, its suppliers and its customers. The importance of the course for students derives from the fact that price is one of the most important decision variables for a firm. A deep understanding of how different modes of competition affect firm’s optimal pricing strategy is thus indispensable knowledge to the astute analyst. In addition future managers should understand how they influence the mode of competition via, for example, product positioning, or investments in capacities. Further, suppliers of primary inputs, intermediate products, manufacturers, wholesale distributors and retailers need to understand the nature of their vertical relations in order to optimise their supplier-customer relationships.

Upon completion of the course:
  • Students should understand the meaning of basic game-theoretic concepts and they should be able to apply them to strategic situations.
  • They should be familiar with and understand the theoretical models of industrial organization covered in the course.
  • They should know the basic empirical approaches to test certain models of industrial organization.
  • They should be able to apply the taught theoretical models of industrial organization to real world situations. The latter implies mathematical calculations as well as producing consistent verbal arguments.
Inter-firm Relations: Industrial Organization:
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) Internal examiner and external examiner
Exam period December/January and February
Aids allowed to bring to the exam Limited aids, see the list below and the exam plan/guidelines for further information:
  • Allowed calculators
  • Allowed dictionaries
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Description of the exam procedure
Allowed exam aids are language dictionaries and Texas Instruments TI-30X IIS (solar), Texas Instruments TI-30X IIB (battery), TI-30X IIS/IIB, TI-30XS MultiView and TI-30XB MultiView).
Course content and structure

We will discuss how firms price their products in markets with varying fierceness of competition, how they use non-pricing strategies such as product differentiation, vertical relations, mergers, as well as entry and exit of firms.
The course builds on microeconomics. It gives an overview of modern industrial organizations and, with its focus on inter-firm relations, it complements AE40 Corporate Governance which is focused on the intra-firm relations.

Teaching methods
Lectures mixed with exercices.
Expected literature

Preliminary literature.
Pepall, Lynne, Dan Richards and George Norman (2008). Industrial Organization, Contemporary Theory and Empirical Applications. 4th Edition, Blackwell Publishing: Malden, Oxford and Victoria.

Last updated on 02-07-2013