University of Alberta Department of Economics
Industrial Organization Economics 373 – X50
Winter 2018
Tues 6:30-9:30 p.m.
Room Bus 2-9
Instructor: Dr. R. McKay White
Office: Bus 2-9
Office Hours: Tuesday 6:00-6:30 p.m.
Email: [email protected]
Course Objectives:
The purpose of the course is to provide a survey of the theory relating to the behaviour and performance of firms in different market structures and a discussion of public policy to deal with possible competition problems in markets with different structures. Competition in real market situations will be discussed and analyzed from time to time throughout the course.
Prerequisites: ECON 281 or equivalent. Not open to students with credit in ECON 471 or 472.
Prerequisites are enforced. Your registration will be cancelled if you have not taken and passed the prerequisite.
Required Text:
Waldman, D.E. and Jensen, E.J., Industrial Organization: Theory and Practice, 4th edition, Boston: Addison Wesley, 2007.
Competition Bureau’s Website: http://www.competitionbureau.gc.ca Competition Tribunal’s Website: http://www.ct-tc.gc.ca
Other Resources:
Scherer, F.M. and Ross D., Industrial Market Structure and Economic Performance, 3rd edition, Boston: Houghton Mifflin Co., 1990.
Church, J. and Ware, R., Industrial Organization: A Strategic Approach, Boston: Irwin McGraw-Hill, 2000.
Shepherd, William G., The Economics of Industrial Organization, 4th edition, Upper Saddle River: Prentice Hall, 1997
Carlton, D.W. and Perloff, J.M., Modern Industrial Organization, Reading, Mass.: Addison- Wesley, 2005.
Course Requirements:
There will be three exams in this course. Each midterm exam will contribute 30% to the final grade, while the final exam will count for 40% of the final grade.
EXAMS WEIGHTING DATE
Term Exam 1 30 % February 6
Term Exam 2 30 % March 13
Final Exam 40 % April 10
Format of Exams:
• All exams will consist of short answer questions.
• Term exam 2 will cover only the material learned since Term exam 1. The Final exam will be based mostly on material covered after Term exam 2, but will also contain some material from earlier in the course. More detail on the content of the exams will be given as we approach exam time.
• Exams may cover any material covered in class or in the textbook.
• There are no supplemental assignments or make-up exams. If an exam is missed, the weight will be added to the final exam.
Grading:
Grades reflect judgements of student achievements made by instructors. These judgments are based on a combination of absolute achievement and relative performance in the class. There is no fixed grade distribution for the course. The following benchmark will be used to translate numerical grades into letter grades:
Percentage Letter Grade Grade Descriptor
95-100% A+ Outstanding
90-94% A
85-89% A- Excellent
80-84% B+
75-79% B
70-74% B- Good
67-69% C+
64-66% C
60-63% C- Satisfactory
55-59% D+
50-54% D Poor
0-49% F Fail
I retain the discretion to adjust class grades as a whole to put it in the range I think appropriate.
“Policy about course outlines can be found in the Evaluation Procedures and Grading System section of the University Calendar.”
“The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at www.governance.ualberta.ca) and avoid any behaviour which could potentially result in
suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence.
Academic dishonesty is a serious offence and can result in suspension or expulsion from the University.”
“Audio or video recording, digital or otherwise, of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as part of an approved accommodation plan. Student or instructor content, digital or otherwise, created and/or used within the context of the course is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the content author(s).”
Students will be given previous exams as practice for the exams in this course.
Lecture Schedule & Assigned Readings:
** Note: This is a rough guide only. Topics may be covered more quickly or more slowly, depending on the speed of discussion. The schedule is therefore subject to change. Any changes will be announced in class.
Topic Readings
1. Introduction Chapter 1
2. Tools of Industrial Organization Sections 1.2-1.3; 2.4-2.6; 3.2-3.3
3. The Firm Chapter 2
4. Market Structure Chapter 4
5. Game Theory Chapter 7
6. Efficiency of Market Structures Sections 3.1; 3.3-3.4
7. Potential Competition Chapter 5
8. Development of Oligopoly Theory Chapter 8
9. Collusion Chapters 9-10
10. Entry and Deterring Entry Chapters 11-12
11. Price Discrimination Chapter 15
12. Vertical Integration and Relationships Chapter 16
