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2013/2014  BA-HAI_2IOA  Industrial Organisational Analysis

English Title
Industrial Organisational Analysis

Course information

Language English
Exam ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Course period Third Quarter, Spring
Time Table Please see course schedule at e-Campus
Study board
Study Board for BSc in International Business
Course coordinator
  • Anette Boom - Department of Economics (ECON)
Main academic disciplines
  • Economics, macro economics and managerial economics
Last updated on 11-07-2013
Learning objectives
After having attended the course the students
should be able
  • to explain the theoretical models of industrial organization covered in the course,
  • to describe the basic empirical approaches in order to test certain models of industrial organization,
  • and to apply the taught theoretical models of industrial organization to real world industries and firms in order to analyze markets and/or firm strategies.
  • The latter implies pursuing mathematical calculations, using diagrammatic representations, as well as producing consistent verbal arguments.
Course prerequisites
Industrial Organisational Analysis:
Examination form Oral exam based on written product

In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and the individual oral performance.
Individual or group exam Individual
Size of written product Max. 30 pages
Assignment type Written assignment
Written product to be submitted on specified date and time.
20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Grading scale 7-step scale
Examiner(s) Internal examiner and external examiner
Exam period Spring Term and August, the regular exam takes place in March/April. The make-up and re-examination takes place in August
Make-up exam/re-exam
Another examination form
The Make-up and Re-examination is a 72 hours individual home assignment of max. 10 standard pages, with external examiner
Description of the exam procedure
Oral individual examination, mainly based on a project report of 25 - 30 pages written by 4-6 students. In the oral exam the student has to answer questions which should clarify whether and to what extent he/she understands the arguments in the delivered project report and whether these arguments make sense. Then each student has to answer a general question related to the textbook and/or the class room teaching. Individual grades are based on the project report and the student’s performance in the oral defence and on his/her answer to the general question.

Declaration of Authorship must be included in the group report.
Course content and structure

The students should get an introduction to industrial organization. They should understand the basic microeconomic models of industrial organization, such as monopoly theory and oligopoly theory and their underlying intuitions. They should get acquainted with some basic concepts of game theory and with theories that explain collusive behaviour, product differentiation, market entry and exit, vertical relations and price discrimination. They should also learn to know empirical regularities around these issues and empirical approaches which try to identify market structure and the level of market power in industries.

The theories and empirical approaches will be used in class and should be used by the students in their projects in order to analyse the market structure, the type of competition, the level of market power and the strategies that firms use to maintain their market power in real world industries from potentially all parts of the world. In addition the main features of the anti-trust policies in Europe and in the US will be discussed. If possible we will have two guest speakers presenting their empirical research with respect to market power and/or their experience from the inside of an anti-trust authority.

The taught theory will be practically applied when discussing small cases in class and by the students in their supervised projects on certain industries or firms. The course is related to a business and/or an institutional setting because the small cases are related to specific firms and the students will be introduced into the workings of the anti-trust authorities in the US, the EU and Denmark. A guest speaker with some work experience in anti-trust authorities will be invited. The course is also related to international business and/or economics since the small cases focus on global strategies of multi-national firms, on global markets and on national markets in different countries. The teaching will be research based either by including a session on the teacher’s own current research or by inviting a guest speaker who presents his or her research.

Teaching methods
Classroom teaching consists of a mixture of lectures and the discussion of exercises and small cases. The lectures focus mainly on the theory of industrial organization whereas the exercises and small cases are mainly concerned with the application of this theory to virtual or actual firms and industries. The focus of the students’ projects should be the application of the theory to actually existing firms and/or industries.
Student workload
Lecture hours 42 hours
Class and exam preparation 183 hours
Expected literature

Cabral, Luis M. B. (2002), Introduction to Industrial Organization, MIT Press: Cambridge, Mass., and London (The author is currently in the process of reviewing his book and if the new edition is out in time we will use it).

Please note, minor changes may occur. The teacher will upload the final reading list to sitescape/learn two weeks before the course starts.

Last updated on 11-07-2013