Economics | Industrial Organization and Control
E585 | 1657 | Raff

Objectives of the Course:

This course has two objectives: (1) to introduce the basic concepts
and tools of modern industrial organization; (2) to examine important
issues in the organization of firms and markets. Roughly equal time
will be allocated to the internal organization of firms and to their
behavior in the market.

The first half of the course will examine the internal organization of
the firm and how it affects the behavior of individuals (owners,
managers, workers) within the firm. Among the topics for this part
are: Coase theorem, transaction cost approach, incentive contracts,
the hold-up problem, efficiency wages, signaling and screening models,
reputation in repeated games. The second part of the course will be
devoted to the organization of markets and business practices. Issues
here include pricing strategies, advertising, product differentiation,
quality competition, collusion, price wars, research and development
strategies. In addition, we will discuss legal/regulatory responses to
those practices.