| Course Description |
This course aims to provide students with a solid understanding of the modern empirical tools used in empirical industrial economics (EIE) to analyse consumer behaviour, (strategic) behavior of firms and market outcomes. EIE combines formal economic theory, knowledge of relevant institutions, micro-economic data, sophisticated econometric tools and computer programming to evaluate how markets function and how much market power firms have. The course covers estimation of static demand (incl. elementary discrete choice models), estimation of marginal costs and mark-ups of firms, evaluating the product choice of firms, as well as the basics of simulating data and counterfactual outcomes. By doing so the course helps the students to develop skills needed to conduct solid analysis in EIE. The methods covered are also widely used in marketing, finance, health economics and international trade. Students learn to implement some of the estimation techniques covered in the course using econometric software Stata. The most motivated students are also encouraged to use R and Matlab. |
| Learning Goal |
You have the capacity to use the concepts and methods of modern industrial organization when analysing choices made by consumers and firms, as well as the functioning of various types of markets. You have also developed your analytical reasoning skills by working with equations to analyse micro-economic phenomena and market outcomes. |
| After completing the course, you will be able to |
- identify different types of markets and how they function
- apply essential IO concepts to evaluate consumers’ choices and firms' decisions in markets
- explain competitive and strategic conduct from the perspective of managerial decision-making
- develop business strategies for firms in different kinds of environments
|
| Course Category |
Class-based course |
| International Learning Experience |
We will study international market using international data sets |
| Pre-requisites |
You should be familiar with basic concepts in microeconomics, industrial organization and econometrics. The participants should have taken a course in intermediate microeconomics (such as 26032 Mikro-ekonomisk företags- och samhällsanalys, or equivalent), and an intermediate level course on econometrics (such as 3606 Econometrics, or equivalent).
You should have some experience in using econometric software, such as Stata. Knowledge of other programming languages, such R, Matlab or Python, is also useful. |
| Total Student Workload |
134 hours divided into
Scheduled (contact) hours: 30 h (24h lectures + 6h tutorial & problem sets discussion)
Non-scheduled work: 104 h
|
| Instruction |
Lectures + exercises + project assignment. Kindly note that you are expected to be present at the first lecture session to confirm your participation in the course. |
| Literature and Course Material |
- Belleflamme, P. & Peitz, M. (2015). Industrial Organization: Markets and Strategies. Second Edition. Cambridge: Cambridge University Press. Chapters 1-7, 16-17
- Tirole, J. (1988). The theory of industrial organization. Cambridge, MA: MIT Press.
Other material, as assigned by the lecturer during the course. |
| Assessment |
Project assignement (40%)
Exercices (40%)
Active lecture participation (20%) |
| Examiner |
Jiekai Zhang |
| Non-degree studies (Open University, JOO and Contract Studies) |
Open university quota: 3
Quota for JOO-students: 3 |
