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2017/2018  BA-BINBO1138U  Industrial Organizational Analysis

English Title
Industrial Organizational Analysis

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Start time of the course Third Quarter, Spring
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc in International Business
Course coordinator
  • Marcus Asplund - Department of Economics (ECON)
Main academic disciplines
  • Economics
Last updated on 16-08-2017

Relevant links

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: After having attended the course the students should be able
  • to explain and analyze theoretical microeconomic models of firm behavior and market equilibrium.
  • to analyze real world market situations using the theoretical models covered in the course.
  • to model a strategic situation facing a firm using game theory and use this to devise a consistent and coherent strategy.
  • to evaluate the efficiency of free market outcomes and explain how competition policy may change market outcomes.
Course prerequisites
Industrial Organizational Analysis:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) Internal examiner and external examiner
Exam period Spring and Summer, the regular exam takes place in March/April. The make-up and re-examination takes place in August
Aids Limited aids, see the list below:
The student is allowed to bring
  • Non-programmable, financial calculators: HP10bll+ or Texas BA II Plus
  • Language dictionaries in paper format
At all written sit-in exams the student has access to the basic IT application package (Microsoft Office (minus Excel), digital pen and paper, 7-zip file manager, Adobe Acrobat, Texlive, VLC player, Windows Media Player). PLEASE NOTE: Students are not allowed to communicate with others during the exam : Read more about exam aids and IT application packages here
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 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 covered in class and should be used by the students 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 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. 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. 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. 

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.
Feedback during the teaching period
Office hours during course period.
Take-home exercises will be discussed in the exercise classes.
Answers to the final exam will be provided in separate session after grades are distributed.
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 16-08-2017