Course Description
Industrial economics, with emphasis on game-theoretic models of strategic behavior, contracting and agency theory, transaction costs, property rights, and the boundaries of the firm. Recent theoretical contributions are also covered, with empirical applications and illustrations.
Athena Title
INDUSTRIAL ECON II
Prerequisite
ECON 8030
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Course Objectives
Students will develop a basic understanding of contract theory, develop skills in basic game theory and applications to topics in industrial economics, and learn various analytical techniques and their applications to theories of contracting hazards and the ways market participants craft "governance structures" to deal with them.
Topical Outline
Firms, Contracts, and Institutions Games, Stategies, and Equilibrium: Cooperation and the Evolution of Norms Oligopoly Agency Theory and Mechanism Design Transaction Cost Economics Vertical Integration Long-term Contracts Enforcement: Reputations and Hostages Regulation Hybrids: Franchising, Leasing, and Exclusive Dealing The Property Rights Approach Other Topics
Syllabus
Public CV