Industrial Economics

3 units

This course provides students with theoretical frameworks for making intelligent decisions in evolving markets. It begins with general game theory concepts which form the basis for deeper exploration of market dynamics, competitive and cooperative firm relationships, and strategy. The course takes a formal approach to the analysis of production and sales decisions by firms. Specifically, we will study the behavior of firms in imperfectly competitive markets. Most real-world scenarios (e.g., markets in which there are few firms, differing firms, or differentiated products) are not adequately characterized by a typical model of perfect competition. We will study the imperfectly competitive circumstances under which firms behave strategically to price above marginal cost and generate profit. You will apply theoretical frameworks in the context of a detailed industry study on which you will present in class.