The Economics of Entrepreneurial Strategy

Graduate pre-requisites: QSTFE 712 or QSTFE 722 or QSTFE 723; and QSTMK 723 or QSTMK 724; and QSTOM 725 or QSTOM 726; and QSTQM 716 or QSTQM 717. Why do startups with similar technologies experience very different outcomes? Their success depends on choices about which customers to serve, how to compete, and with whom to partner. This course applies economic reasoning to these choices, examining how market conditions and the incentives of customers, competitors, and partners shape decisions about market entry, positioning, and growth. We consider both competition among startups and the challenges of competing with — or collaborating with — established firms. Students learn to assess incentives, anticipate how others will respond, and identify the conditions under which different strategies succeed. The emphasis is on applying economic insights to practical decisions facing entrepreneurs and managers of new ventures.