Introduction to Industrial Organization Fall 2017 Syllabus

Transcription

1 Syllabus Lectures: Instructor: Fridays, 9:10am-12:10pm Social Science Building Phone: (02) Office: Social Science Building 717 Office Hours: Thursdays, 10:00-11:00am, or by appointment Course Description: This course provides the introduction to Industrial Organization (IO), including the study of the market structure, the theory of the firm, and some other important topics in IO. The focus will be on some basic theoretical models and related empirical studies. Course Objectives: The goal is to familiarize students with different market structures and to provide some related topics for research in the future. Prerequisites: Microeconomics I and II (ECON 2001, 2002) and Statistics and Econometrics I and II (ECON 2014, 2015) are required. Recommended Textbooks: Dennis W. Carlton and Jeffrey M. Perloff. Modern Industrial Organization (4th Edition), Pearson/Addison Wesley, Jean Tirole. The Theory of Industrial Organization, Cambridge, MA: MIT Press, Course Requirements and Grading: The requirement is that students should read the assigned materials before attending class. Grades will be based on: Summary report (30%). In-class presentation (30%). Class participation (10%). Term paper (due date: Jan 19, 2018) and presentation (scheduled on Jan 5, 2018 or Jan 12, 2018) (30%). Late term paper will not be accepted for any reason. For in-class presentation, each group (1-2 students) should present one paper (30-40 minutes with discussion) from the reading list. Besides the presentation group, each other group should hand in an one-page summary report for the presented paper. 1

2 Course Outline: 1 Sep 15 Introduction to this course and industrial organization 2 Sep 22 Perfect competition, monopoly, and dominant firm 3 Sep 29 Static oligopoly Noel, M. D. (2007) Edgeworth Price Cycles: Evidence from the Toronto Retail Gasoline Market, Journal of Industrial Economics, 55, Oct 6 Dynamic oligopoly * Topic and research questions for the term paper 5 Oct 13 Monopolistic competition Genesove, D. and Mullin, W. P. (1998) Testing Static Oligopoly Models: Conduct and Cost in the Sugar Industry, , RAND Journal of Economics, 29, Oct 20 Demand estimation Clark, R. and Houde, J. F. (2013) Collusion with Asymmetric Retailers: Evidence from a Gasoline Price-Fixing Case, American Economic Journal: Microeconomics, 5, Oct 27 Hedonic model * Dataset for the term paper 8 Nov 3 Price discrimination Einav, L. (2007) Seasonality in the U.S. Motion Picture Industry, RAND Journal of Economics, 38, Nov 10 Dynamic pricing Shepard, A. (1991) Price Discrimination and Retail Configuration, Journal of Political Economy, 99,

3 10 Nov 17 Search and price dispersion Sweeting, A. (2012) Dynamic Pricing Behavior in Perishable Goods Markets: Evidence from Secondary Markets for Major League Baseball Tickets, Journal of Political Economy, 120, Nov 24 Entry deterrence * Data description for the term paper 12 Dec 1 Entry and exit Goolsbee, A. and Syverson, C. (2008) How Do Incumbents Respond to the Threat of Entry? Evidence from the Major Airlines, Quarterly Journal of Economics, 123, Dec 8 Vertical relationship Berry, S. T. and Waldfogel, J. (1999) Free Entry and Social Inefficiency in Radio Broadcasting, RAND Journal of Economics, 30, Dec 15 Wholesale and retailing 15 Dec 22 Mergers Hastings, B. J. (2004) Vertical Relationships and Competition in Retail Gasoline Markets : Empirical Evidence from Contract Changes in Southern California, American Economic Review, 100, Borenstein, S., Colin Cameron, A. and Gilbert, R. (1997) Do Gasoline Prices Respond Asymmetrically to Crude Oil Price Changes?, Quarterly Journal of Economics, 112,

4 16 Dec 29 Advertising Lewis, R. A. and Reiley, D. H. (2014) Online Ads and Offline Sales: Measuring the Effect of Retail Advertising via a Controlled Experiment on Yahoo!, Quantitative Marketing and Economics, 12, Jan 5 Term paper presentation 18 Jan 12 Term paper presentation Note: From week 5, we will study some related empirical papers. However, those empirical papers are lagged behind the related topics by one or two weeks. 4

5 References Berry, S. T. and Waldfogel, J. (1999) Free Entry and Social Inefficiency in Radio Broadcasting, RAND Journal of Economics, 30, Borenstein, S., Colin Cameron, A. and Gilbert, R. (1997) Do Gasoline Prices Respond Asymmetrically to Crude Oil Price Changes?, Quarterly Journal of Economics, 112, Clark, R. and Houde, J. F. (2013) Collusion with Asymmetric Retailers: Evidence from a Gasoline Price-Fixing Case, American Economic Journal: Microeconomics, 5, Einav, L. (2007) Seasonality in the U.S. Motion Picture Industry, RAND Journal of Economics, 38, Genesove, D. and Mullin, W. P. (1998) Testing Static Oligopoly Models: Conduct and Cost in the Sugar Industry, , RAND Journal of Economics, 29, Goolsbee, A. and Syverson, C. (2008) How Do Incumbents Respond to the Threat of Entry? Evidence from the Major Airlines, Quarterly Journal of Economics, 123, Hastings, B. J. (2004) Vertical Relationships and Competition in Retail Gasoline Markets : Empirical Evidence from Contract Changes in Southern California, American Economic Review, 100, Lewis, R. A. and Reiley, D. H. (2014) Online Ads and Offline Sales: Measuring the Effect of Retail Advertising via a Controlled Experiment on Yahoo!, Quantitative Marketing and Economics, 12, Noel, M. D. (2007) Edgeworth Price Cycles: Evidence from the Toronto Retail Gasoline Market, Journal of Industrial Economics, 55, Shepard, A. (1991) Price Discrimination and Retail Configuration, Journal of Political Economy, 99, Sweeting, A. (2012) Dynamic Pricing Behavior in Perishable Goods Markets: Evidence from Secondary Markets for Major League Baseball Tickets, Journal of Political Economy, 120,