ECON 4999-002 Economics in Action: Industrial Organization

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ECON 4999-002 Economics in Action: Industrial Organization
Dr. Diana Moss
University of Colorado
Department of Economics
Phone: 703-400-5406
E-mail: [email protected] or [email protected]
Office hours: T/Th 11:00 am - 12:15 pm
Economics in Action: Industrial Organization (4999-002)
Fall 2005 (T/Th: 9:30 - 10:45 am)
Course Description and Objectives:
The objective of this course is to familiarize you with the applications of Industrial Organization,
with emphasis on one of the major instruments of competition policy–antitrust policy and
enforcement. Industrial Organization largely addresses imperfectly competitive market
structures, firm conduct (e.g., pricing, output, quality issues, advertising and marketing, and
entry and exit) in those markets, and market performance. The course will emphasize the legaleconomic concepts that form the basis for antitrust, the qualitative and quantitative tools useful
for thinking critically about a wide variety of antitrust issues, and their applications. Applying
these skills to a variety of real-word problems will be a central focus of the course, as indicated
by the case-study format of the assigned test. The course consists of four parts. Part I examines
problems involving horizontal structure (mergers). Part II looks at horizontal practices (cartels,
coordinated interaction, bid rigging, etc.). Part III addresses vertical and related market issues
(tying, bundling, and resale price maintenance, etc.), and Part IV looks at network issues
(aftermarket issues, predation, etc.).
Course Requirements, Grading, and Other Policies
Mid-Term Exam #1 (to be announced)
Mid-Term Exam #2 (to be announced)
Team Projects:
▪ Research Paper
▪ Presentation
Class participation
Grading: Grading will be based on: (1) two mid-term exams, (2) a 3-4 person team research
paper and presentation, and (3) class participation. Note that there are no make-up exams and
none will be scheduled. I will assign letter grades at the end of the semester based on total scaled
point scores.
Academic Integrity, Student Conduct, and Students with Disabilities: Students are expected
to abide by the University’s academic integrity, student conduct, and disabilities policies. In
particular, the use of wireless telephony devices while the class is in session distracts the class
from the subject matter and discussion and should be turned off before the start of class. In
accordance with University policy, if you have specific disabilities that require accommodation,
please let me know early in the semester so that your learning needs may be appropriately met.
You will be required to provide documentation of your disability to the Disability Services
The assigned textbook--The Antitrust Revolution, John E. Kwoka, Jr. And Lawrence J. White,
eds., 4th edition, 2004, Oxford University Press--is available at the bookstore. The book takes a
case-study approach to the subject matter with prefaces for each of the four major parts: (1)
horizontal structure; (2) horizontal practices (3) vertical and related market issues; and (4)
network issues. I encourage you to keep up with the readings, in advance of their coverage in
Calendar of Topics
Part I: Horizontal Structure
Weeks 1 - 4: Chapter 1:
Chapter 2:
Chapter 3:
Chapter 4:
Chapter 5:
Chapter 6:
Part II:
Manifest Destiny (Railroads)
Prices, Market Definition, and the Effects of a Merger
Potential Competition and Local Telephone
Long-Distance Telephone
Crude Oil
Efficiencies and High Concentration
Horizontal Practices
Weeks 5 - 7: Chapter 7:
Chapter 8:
Chapter 9:
Chapter 10:
Chapter 11:
Chapter 12:
Antitrust and Higher Education
Bidding, Bid Rigging
Rapid Price Communication and Coordination
Global Cartels
Sports Leagues
Brand Name Prescription Drug Litigation
Part III:
Vertical and Related Market Issues
Weeks 8 - 11: Chapter 13:
Chapter 14:
Chapter 15:
Chapter 16:
Part IV:
Revisiting Maximum Resale Price Maintenance
Technology Cross-Licensing Practices
Retailer-Instigated Restraints on Suppliers’ Sales
Network Issues
Weeks 12-15: Chapter 17:
Chapter 18:
Chapter 19:
Chapter 20:
Links Between Markets and Aftermarkets
Access and Network Effects in the “New Economy”
Maintenance of Monopoly
Predation Policy
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