Course Details

INDUSTRIAL ORGANIZATION

ECON304

Course Information

Semester	Course Unit Code	Course Unit Title	T+P+L	Credit	Number of ECTS Credits
6	ECON304	INDUSTRIAL ORGANIZATION	3+0+0	3	5

Course Details

Language of Instruction	English
Level of Course Unit	Bachelor's Degree
Department / Program	ECONOMICS
Type of Program	Formal Education
Type of Course Unit	Compulsory
Course Delivery Method	Face To Face
Objectives of the Course	Providing an understanding of the key functionings of markets and competition. Introducing imperfect competition conditions where firms hold market power. Defining classical models of duopoly including Cournot, Bertrand, Hotelling and Stackelberg models. Introducing vertical and horizontal product differentiation.
Course Content	The course is designed to examine subjects, in addition to subjects of ECON 201 - Microeconomics I and ECON 202 – Microeconomics II, that are related to comparatively more realistic analyses of current markets. Markets and particularly competition, when assumptions of perfect competition do not hold, are examined. Subjects such as imperfect competition, oligopoly theory, quantity and price competition, vertical and horizontal market relations, advertising and other marketing tools are examined.
Course Methods and Techniques	Learners will be provided with as much opportunities of hands-on practice as possible with the aim of striking a balance between learner-centeredness and sufficient guidance. Various forms of interaction (i.e. pair work and group work) will also be encouraged to cater for learners with different learning styles. Additionally, individuals will be expected to produce homework assignments in addition to the reading tasks, which will encourage them to reflect and think critically. Technology will also be incorporated into the classroom procedures in order to create a better learning environment.
Prerequisites and co-requisities	( ECON305 )
Course Coordinator	Asist Prof.Dr. UMUT TÜRK umut.turk@agu.edu.tr
Name of Lecturers	Associate Prof.Dr. UMUT TÜRK
Assistants	None
Work Placement(s)	No

Recommended or Required Reading

Resources
	1) Church, J. R., & Ware, R. (2000). Industrial organization: a strategic approach (pp. 367-69). Boston: Irwin McGraw Hill. 2) Belleflamme, Peitz Industrial Organization, Markets and Strategies, Cambridge University Press (2010). Additional Resources: Tirole, J.: The Theory of Industrial Organization, MIT Press, 1988. Green, J.R. and Scotchmer, S. On the Division of Profit in Sequential Innovation. RAND Journal of Economics (1995)
	1) Church, J. R., & Ware, R. (2000). Industrial organization: a strategic approach (pp. 367-69). Boston: Irwin McGraw Hill. 2) Belleflamme, Peitz Industrial Organization, Markets and Strategies, Cambridge University Press (2010). Additional Resources: Tirole, J.: The Theory of Industrial Organization, MIT Press, 1988. Green, J.R. and Scotchmer, S. On the Division of Profit in Sequential Innovation. RAND Journal of Economics (1995)
	TBA
	TBA

Course Category

Mathematics and Basic Sciences	%40
Social Sciences	%60

Planned Learning Activities and Teaching Methods

Activities are given in detail in the section of "Assessment Methods and Criteria" and "Workload Calculation"

Assessment Methods and Criteria

In-Term Studies	Quantity	Percentage
Yarıyıl İçi Çalışmalarının Başarı Notunun Katkısı	1	% 10
Quiz/Küçük Sınav	1	% 30
Ödev	1	% 10
Final examination	1	% 50
Total	4	% 100

ECTS Allocated Based on Student Workload

Activities	Quantity	Duration	Total Work Load
Ara Teslim ve Jüri	1	3	3
Münazara	1	1	1
Tartışma	15	1	15
Yazılı Sınav	1	3	3
Ev Ödevi	8	3	24
Sunum	15	1	15
Okuma	15	1	15
Tekrar Anlatım	2	5	10
Yüz Yüze Ders	7	2	14
Derse Devam	15	3	45
Total Work Load			Number of ECTS Credits 5 145

Course Learning Outcomes: Upon the successful completion of this course, students will be able to:

No	Learning Outcomes
1	Compare perfect and imperfect competition market conditions.
2	Discuss the implications of imperfect competition on welfare.
3	Find Nash Equilibrium quantities and prices in Cournot, Bertrand, Hotelling and Stackelberg settings.
4	Design competition models where few firms interact under vertical and horizontal product differentiation and with capacity constraints.

Weekly Detailed Course Contents

Week	Topics	Study Materials	Materials
1	Introduction, Review of Cost Concepts
2	Perfect Competation, Profit Maximization, Consumer/Producer Surplus, Pareto Optimality, Monopoly
3	Welfare Consequences, Monopoly Profit Maximization Problem, Lerner Index, Sources of Market Power
4	Game Theory
5	Classic Models of Oligopoly, Static Oligopoly Models, Cournot Competition, Market Power and Efficiency, Herfindahl-Hirschman Index
6	Classic Models of Oligopoly, Bertrand Competition, Product Differentiation, Bertrand Paradox
7	Classic Models of Oligopoly, Cournot vs. Bertrand Competition, Capacity Constraints, Dynamic Models of Oligopoly
8	Dynamic Models of Oligopoly, Collusion, Sequential Choice Stackelberg
9	Free entry: endogenous number of firms; properties of free-entry equilibria
10	Product Differentiation; Horizantal product Differentiation, The Linear Hotelling Model
11	Vertical Product Differentiation
12	Advertising and related marketing strategies 1
13	Advertising and related marketing strategies 2
14	Assignment Solutions

Contribution of Learning Outcomes to Programme Outcomes

	P1	P2	P3	P4	P5	P6	P7	P8	P9	P10
C1	5	5	5	5	5	4	3	4	5	3
C2	5	5	5	5	4	3	3	3	5	3
C3	5	5	4	5	3	2	1	2	5	1
C4	5	5	5	5	3	3	1	2	5	1

Contribution: 1: Very Slight 2:Slight 3:Moderate 4:Significant 5:Very Significant

https://sis.agu.edu.tr/oibs/bologna/progCourseDetails.aspx?curCourse=70499&lang=en

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