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2013/2014  KAN-OE21  Advanced Industrial Organization

English Title
Advanced Industrial Organization

Course information
Language English
Exam ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Course period Spring
Time Table Please see course schedule at e-Campus
Max. participants 50
Study board
Study Board for MSc in Advanced Economics and Finance
Course coordinator
  • Marcus Asplund - Department of Economics (ECON)
Main academic disciplines
  • Economics, macro economics and managerial economics
Last updated on 11-10-2013
Learning objectives
Students are required to:
  • explain different models of oligopoly coordination and give an account of, why they arrive at different predictions
  • explain how horizontal mergers may be modelled and how the effect of a merger depends on fundamentals
  • analyze how different vertical restraints complement or supplement each other in solving vertical coordination problems or how and when they may lead to foreclosure
  • discuss the literature on the different sources of market power and solve models that involve such forces
  • apply 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
Course prerequisites
This is a mandatory course for the elite MSc in Advanced Economics and Finance. It is assumed that students have knowledge similar to the entry requirements for the MSc in Advanced Economics and Finance. For spring courses knowledge similar to the content of the 1st-semester courses is assumed as well. The courses have 60 confrontation hours (lectures and exercises), and there is a high level of interaction between lecturer and students, and in general a high work load.

To sign up send a 1-page motivational letter, a 1-page CV, and a grade transcript to oecon.eco@cbs.dk no later than14 November 2013. Please also remember to sign up through the online registration.
Prerequisites for registering for the exam
Compulsory assignments (assessed approved/not approved)
The students must hand in 3 exercise preparations during the course and must pass 2 out of three exercise preparations on an approved/not approved basis before the final exam.

If a student - due to documented illness or failed attempts - does not pass 2 out of 3 exercise preparations, the student will be given a final chance to retake this part of the course by handing in a new exercise preparation prior to the final exam.
Examination
Final exam:
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 May/June
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.
Course content and structure

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
Further Information
Part of this course may be taken as a PhD course by a limited number of PhD students.
Expected literature

Indicative:
Paul Belleflamme and Martin Peitz (2010), Industrial Organization: Markets and Strategies, Cambridge et al.: Cambridge University Press and a collection of articles.
Last updated on 11-10-2013