Industrial Organization

Dit vak wordt in het Engels aangeboden. Omschrijvingen kunnen daardoor mogelijk alleen in het Engels worden weergegeven.

Doel vak

Upon completion of the course you:
1. have knowledge of main models and tools used in industrial
organization for analysis of firm behavior (Bridging Theory and Practice
- Knowledge);
2. understand the notion of market failure, the role of regulation and
the role of antitrust (Bridging Theory and Practice - Knowledge);
3. can name and explain the determinants of the actions taken by firms
and are able to explain the relationships between firms' actions and
market outcomes (Bridging Theory and Practice - Knowledge);
4. are able to determine optimal firm and regulator behavior conditional
on the type of market structure and nature of competition in the market
and draw policy conclusions (Bridging Theory and Practice - Knowledge);
5. are able to apply mathematics, game theory, and micro-economic tools
to analyze such market phenomena as collusion, abuse of dominance, entry
and exit decisions, and regulation of natural monopoly (Academic and
6. can discuss real-world experiences of abuse of dominant position,
cartel agreements and predatory conduct (Bridging Theory and Practice -
7. are able to analyze real markets, identify the situations where
competitive forces are weak, and discuss public policy measures intended
to deal with diagnosed problems (Academic and Research Skills).

Inhoud vak

Many markets of interest are dominated by a few firms. Microsoft,
Google, Apple, Intel, Airbus and Vodafone are examples of firms with
significant market dominance. These firms not only choose their prices,
but also the quality and the design of their products. They buy other
firms and perhaps engage in illegal practices such as collusion and
abuse of dominance. These choices have far-reaching effects on the
markets in which they operate as well as throughout the economy. This
course presents an approach –based on strategic decision making– for
understanding the functioning of such markets.
This course is designed to give students an overview of the theory of
Industrial Organization, to provide students with insights in the
organization of markets, and to give an overview of the main models and
tools used for analysis of imperfectly competitive markets. In addition,
this course studies public policy aimed at industries where the
competitive forces fail to deliver efficient outcomes. In particular,
the course focuses on sources of market failure such as economies of
scale, barriers to entry, collusion, and abuse of dominant position.
After introducing the basic notions of market failure and market
structure the course concentrates on public policies to alleviate
possible negative effects on consumer welfare. The course covers key
antitrust issues such as abuse of dominance, collusion, merger analysis,
entry deterrence and predation as well as regulation of natural
monopoly, regulation under asymmetric information, and public choice
aspects of regulation. Empirical approaches to measuring market power
and estimating structural relationships will also be discussed.




Assignments and presentations - group assessment.
Written exam - individual assessment.

Vereiste voorkennis

Microeconomics I

Familiarity with concepts / topics discussed in chapters 2-8 of
Goolsbee, A., S. Levitt and C. Syverson (2013): Microeconomics. New
York: MacMillan/Worth Publishers.

Students also should be familiar with main analytical tools used in
microeconomics such as calculus, optimization, and integration.


Church, J. and Ware, R. (2000), “Industrial Organization: A Strategic
Approach,” McGraw Hill (see

Additional articles (to be specified).

Aanbevolen voorkennis

Microeconomics II

Algemene informatie

Vakcode E_EBE3_IO
Studiepunten 6 EC
Periode P4
Vakniveau 300
Onderwijstaal Engels
Faculteit School of Business and Economics
Vakcoördinator dr. E.I. Motchenkova
Examinator dr. E.I. Motchenkova
Docenten dr. E.I. Motchenkova
dr. S. Hochguertel

Praktische informatie

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