| LEC # | TOPICS | READINGS |
|---|---|---|
| 1 | Overview & Review | Overview of Course and Review of Basic Microeconomics C&W, Chap. 1, 2, 3.1 |
| 2 | Recitation: Regression Basics | |
| 3 | Monopoly & Dominant Firms | Monopoly and Dominant Firms C&W, Chap. 4 "Hard Profits: A Cement Titan in Mexico Thrives by Selling to the Poor—Cemex's Huge Market Share Lets It Keep Prices High, Expand Around the Globe." Wall Street Journal (April 22, 2002): A1. |
| 4 | Game Theory 1: Static Models | Game Theory Introduction C&W, Chap. 7 Non-cooperative Oligopoly: Static Models C&W, Chap. 8 |
| 5 | Recitation: Competitive Strategy Game | |
| 7 | Game Theory II: Dynamic Games | Non-cooperative Oligopoly: Dynamic Models C&W, Chap. 9, 10.3-10.4 |
| 8 | Recitation: Dynamic Games | |
| 9 | Tacit Collusion: GE-Westinghouse HBS Case | Cooperative Oligopoly and Tacit Collusion C&W, Chap. 10 (remainder) Harvard Business School Case. "General Electric v. Westinghouse in Large Turbine Generators." 9-380-128. |
| 10 | Facilitating Practices & Cartel Introduction | Cartels & Price-fixing C&W, appendix (antitrust) Salpukas, A. "An Oil Outsider Revives a Cartel." New York Times, Sunday, Oct. 24, 1999, Sec. 3, p. 1. Sotheby's and Christy's |
| 11 | Recitation: Dynamic Games | |
| 12 | Cartels & Price-fixing; Antitrust Law | Cartels & Price-fixing C&W, appendix (antitrust) Salpukas, A. "An Oil Outsider Revives a Cartel." New York Times, Sunday, Oct. 24, 1999, Sec. 3, p. 1. Sotheby's and Christy's |
| 13 | Antitrust Policy: Mergers & Monopolization | Horizontal Antitrust Policy- Mergers, Alliances, and Joint Ventures C&W, Chap. 23, 19 (skim) U.S. Council of Economic Advisors. "Realizing Gains from Competition." Chap. 3 in The Economic Report of the President. January 2002, pp. 99-143. (this reads quickly!). "Oligopolies are on the Rise as the Urge to Merge Grows." Wall Street Journal (February 25, 2002): A1. Airline Alliances: NW/CO/DL
|
| 14 | Recitation: Cartels | |
| 15 | Measuring Market Power | Measuring Market Power C&W, Chap. 12 |
| 16 | Oligopoly Pricing Strategies I | Strategic Behavior in Oligopoly Markets (Overview) C&W, Chap. 13 Pricing and Price Discrimination C&W, Chap. 5 Nintendo in Europe: See the European Commission Ruling & Press Release, 30 October 2002. Priceline: "How to Beat Priceline." Wall Street Journal (April 9, 2002): D1. Internet Pricing and Search: Ellison, Glenn, and Sara Ellison. "Search, Obfuscation, and Price Elasticities on the Internet." MIT mimeo, 2001. |
| 17 | Recitation: Exam 1 Review, PS 2 solutions | |
| 18 | Oligopoly Pricing Strategies II | Pricing and Price Discrimination C&W, Chap. 5 Nintendo in Europe: See the European Commission Ruling & Press Release, 30 October 2002. Priceline: "How to Beat Priceline." Wall Street Journal (April 9, 2002): D1. Internet Pricing and Search: Ellison, Glenn, and Sara Ellison. "Search, Obfuscation, and Price Elasticities on the Internet." MIT mimeo, 2001. |
| 19 | ||
| 20 | Oligopoly Pricing Strategies III | Pricing and Price Discrimination C&W, Chap. 5 Nintendo in Europe: See the European Commission Ruling & Press Release, 30 October 2002. Priceline: "How to Beat Priceline." Wall Street Journal (April 9, 2002): D1. Internet pricing and search: Ellison, Glenn, and Sara Ellison. "Search, Obfuscation, and Price Elasticities on the Internet." MIT mimeo, 2001. |
| 21 | Entry | Entry, Entry Deterrence C&W, Chap. 14, 15, 16.1 Ghemawat, Pankaj. "Capacity Expansion in the Titanium Dioxide Industry." Journal of Industrial Economics 33, 2 (December 1984): 145-63. |
| 22 | Recitation | |
| 23 | Entry Deterrence | Entry, Entry Deterrence C&W, Chap. 14, 15, 16.1 Ghemawat, Pankaj. "Capacity Expansion in the Titanium Dioxide Industry." Journal of Industrial Economics 33, 2 (December 1984): 145-63. |
| 24 | Predatory Pricing | Predation C&W, Chap. 21 U.S. v. American Airlines, Memorandum and Order, April 27, 2001; Brief for Appellant, January 11, 2002. See also Complaint, May 13, 1999. American Airlines Reply to DoJ Appeal |
| 25 | Recitation | |
| 26 | Raising Rivals' Costs | Raising Rivals' Cost C&W, Chap. 20 |
| 27 | Product Choice 1: Spatial Models & Cereal | Product Choice and Differentiation C&W, 11 (differentiation), Chap. 4.3 (durability), 6 (quality), 16.2 (switching costs) (Background, optional): Nevo, Aviv. "Measuring Market Power in the Ready-to-Eat Cereal Industry." Econometrica 69 (March 2001): 307-342. [Available on-line from Proquest] "Chrysler Unveils New Warranty Deal." Detroit Free Press, July 7, 2002. |
| 28 | Recitation: Spatial Competition Models; PS 3 | |
| 29 | Product Choice 2: Quality, Durability & Networks | Product Choice and Differentiation C&W, 11 (differentiation), Chap. 4.3 (durability), 6 (quality), 16.2 (switching costs) (Background, optional): Nevo, Aviv. "Measuring Market Power in the Ready-to-Eat Cereal Industry." Econometrica 69 (March 2001): 307-342. [Available on-line from Proquest] "Chrysler Unveils New Warranty Deal." Detroit Free Press, July 7, 2002. |
| 30 | Recitation | |
| 31 | Advertising | Advertising C&W, Chap. 17 "Cigarette Makers in Discount War to Lock in Share." Wall Street Journal (September 23, 1998): B1. |
| 32 | R&D | R&D C&W, Chap. 18 "Leading the News: Drug Study Finds Little Innovation." Wall Street Journal (May 29, 2002): A3. |
| 33 | Recitation | |
| 34 | Internal Organization 1: Firm Boundaries | Internal Organization and Theory of the Firm C&W, Chap. 3.2-3.4 |
| 35 | Internal Organization 2: Firm Behavior | Internal Organization and Theory of the Firm C&W, Chap. 3.2-3.4 |
| 36 | Recitation: CSG Debriefing | |
| 37 | Vertical Structure | Vertical Integration and Other Vertical Structures C&W, Chap. 16.3-16.4, 22 "Big Tooth? Suit Says Dentsply has a Monopoly." Wall Street Journal (April 12, 2002): A13. |
| 38 | Industry Discussion | |
| 39 | Review for Final Exam |