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2021/2022  KAN-CCMVI2110U  Economics of Strategy and Organizations

English Title
Economics of Strategy and Organizations

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 60
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Cédric Schneider - Department of Economics (ECON)
For academic questions related to the course, please contact course responsible Cédric Schneider (csc.eco@cbs.dk).
Main academic disciplines
  • Managerial economics
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 01/12/2021

Relevant links
Learning objectives
To achieve the grade 12, students are required to
  • Explain and analyze models of firm behavior and market equilibrium
  • Analyze real world market situations using the theoretical models covered in the course
  • Model a strategic situation facing a firm using game theory
  • Develop the basic intuition for pricing and other forms of strategic behavior on the part of firms
Course prerequisites
Completed Bachelor degree or equivalent. Students are expected to have taken a bachelor level course in microeconomics. Students are also expected to be comfortable with basic algebra and calculus,
including systems of equations, derivatives and logarithms
Examination
Economics of Strategy and Organizations:
Exam ECTS 7.5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 15 pages
Assignment type Project
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Summer and Summer
Make-up exam/re-exam
Same examination form as the ordinary exam
The 1st and 2nd retake is a 72-hour, maximum 10-pages home assignment
Course content, structure and pedagogical approach

Course content

This course analyzes the way firms make production and sales decisions and interact strategically in the marketplace.

 

We begin with a study of optimal pricing policies, including versioning, bundling, and related market segmentation strategies.

In the second part of the course, we apply game theory to the study of oligopoly interaction, focusing on pricing and output strategies in a dynamic setting.

In the third part of the course, we analyze strategies for firm dominance, especially through the deterrence of potential competition. The list of such strategies includes capacity expansion, product proliferation, and exclusive dealing contracts.

Finally, we analyze non-price startegies such as advertisement, innovation and R&D, and network industries

 

The main goal of the course is to develop the basic intuition for pricing and other
forms of strategic behavior on the part of firms, both when faced with complex patterns of consumer demand and with strategic competitors

 

Course structure

Class 1:Introduction to the course and review of basic concepts
Class 2: Theories of the firm
Class 3: Pricing strategies
Class 4: Games and strategies
Class 5: Strategies in Oligopolies 
Class 6: collusion

Class 7: Market structure
Class 8: Horizontal mergers
Class 9: vertical relations
Class 10: Product differentiation
Class 11: Innovation and networks
Description of the teaching methods
lectures and case discussions. The class meetings are interactive and require ongoing engagement of the students.
Feedback during the teaching period
Office hours during course period.
Take-home exercises and cases will be discussed in class.
Student workload
Preliminary assignment 20 hours
Classroom attendance 33 hours
Preparation 123 hours
Exam preparation 30 hours
Further Information

Short 3 weeks course that cannot be combined with any other course

 

The course coordinator will upload a Preliminary Assignment on Canvas at the end of May. It is expected that students participate as it will be included in the final exam, but the assignment is without independent assessment and grading

 

Course and exam timetable is/will be available on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams

 

We reserve the right to cancel the course if we do not get enough applications. This will be communicated on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams in start March

 
Expected literature

Main textbook

Cabral, Luis M. B. (2017), Introduction to Industrial Organization, 2nd edition, MIT Press: Cambridge, Mass., and London

 

Exercises and cases will be posted on Canvas

 

Other relevant readings :

Lipczynski, J., Wilson, J.O.S., Goddard, J. (2017), Industrial Organization, Competition, Strategy and Policy, 5th edition, Pearson

 

Rickard, S. (2006), The Economics of Organizations and Strategy, McGraw Hill

 

Png, I. and Lehman, D. (2007) Managerial Economics, Blackwell Publishing.
Last updated on 01/12/2021