The course reviews structure, conduct, and performance of firms under market structures characterized by imperfect competition. The specific topics include but not limited to monopolistic and oligopolistic market structures; firm behaviour such as price discrimination, collusion, mergers, acquisitions; regulation. Topics to be Covered | | | | List of Topics | No. of Weeks | Contact hours | Topic I: Introduction to Industrial Organization(IO): · Introduction to IO · The Demand for IO | 1 | 3 | Topic II: Concentration Measures: · Concentration curve · Concentration ratio · Hirschman-Herfindahl index | 2 | 6 | Topic III: Identifying and Measuring Market Power: · Structure, Conduct, and Performance · SCP in Practice: The Framework · SCP in Practice: The Results · Critiques of SCP Studies · Product Differentiation | 3 | 9 | Topic IV: Market Power and Dominant Firms: · Monopoly: Sources of Market Power- Government Restrictions on Entry- Structural Characteristics- Strategic Behavior by Incumbents · Oligopoly: Game Theory- Foundations and Principles- The Basic Elements of a Game . Types of Games- Equilibrium Concepts · Classic Models of Oligopoly: Static Oligopoly Models- Cournot · Perfect Competition: Supply- Market Equilibrium- Market Power and Pricing- Measurement and Determinants of Market Power · Monopolistic Competition: Preference Specification- Monopolistic Competition: Equilibrium | 4 | 12 | | Review and midterm test | 1 | 3 | Topic IV: Firms Entry & Exit: · Entry Barriers: Positive Definitions of Barriers to Entry- An Assessment of Barriers to Entry- Normative Definitions of Entry Barriers · Why Do Firms Exist?- Explanations for the Existence of Firms- Alternative Economic Organizations- Contracts- Vertical Integration | 2 | 6 | Topic V: Advertising, Research and Development: · Normative vs. Positive Issues: The Welfare Economics of Advertising- Advertising and Strategic Entry Deterrence · A Positive Analysis: Strategic R&D- Market Structure and Incentives for R&D | 1 | 3 | | Topic VI: Government industrial policies (Definition- Tools), Government industrial policy in Saudi Arabia | 1 | 3 |
| Schedule of Assessment Tasks for Students During the Semester | | | | | | Assessment task (i.e., essay, test, quizzes, group project, examination, speech, oral presentation, etc.) | Week Due | Proportion of Total Assessment | | 1 | In class/Online Quiz | Week 5, 8 | 10% | | 2 | Individual Assignment / Report – participation | Ongoing, End of Semester | 15% | | 3 | Group Project/Portfolio/Presentation | Ongoing, End of Semester | 15% | | 4 | Midterm exam | 10 th week | 20% | | 5 | Final Exam | End of the semester | 40 % |
1. List Required Textbooks1. Book | Essential: • Jeffrey Church, Roger Ware, “Industrial Organization: A Strategic Approach" , Irwin McGraw-Hill, 2000 1. Book | Assistant: • John Lipczynski, John O.S. Wilson, John Goddard, “Industrial Organization Competition, Strategy and Policy", Fifth edition, Pearson Education Limited, 2018. • Dennis W. Carlton, University of Chicago & Jeffrey M. Perloff, University of California-Berkeley," Modern Industrial Organization, Global Edition, 4/E", Pearson,2016
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