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ECON306: Industrial Organization

Unit 1: The Field of Industrial Organization   The most basic questions that concern the field of Industrial Organization are: How do firms acquire market power?  How do firms use market power?  What are the implications of market power?  And can public policy limit unrelenting growth of market power?  This section of the course will address the systematic frameworks in which the theory of markets and the behavior of firms can be studied.  

Unit 1 Time Advisory
Time Advisory: This unit will take you 4 hours to complete. - Subunit 1.1: 1.5 hours - Subunit 1.2: 0.5 hours - Subunit 1.3: 1 hour - Subunit 1.4: 1 hour

Unit1 Learning Outcomes
Learning Outcomes:
Upon successful completion of this unit, students will be able to:
- Broadly define the scope and focus of industrial organization. - Identify the topics that lie within the scope of industrial organization, especially topics related to:

o      the structure of markets,
o      the organization of markets affecting the behavior of firms and the market performance, and
o      the behavior of firms affecting the organization of markets and the market performance. - Identify the different approaches used in answering questions within the field of industrial organization. 

1.1 What Is Industrial Organization?   - Reading: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware’s Industrial Organization: A Strategic Approach: "Chapter 1, Section 1.1: A More Formal Introduction to IO" Link: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware’s Industrial Organization: A Strategic Approach: "Chapter 1, Section 1.1: A More Formal Introduction to IO" (PDF)
 
Instructions: You will need to download the PDF file of the book by clicking on the "Download" tab on the right hand side of the webpage.  Please note that the PDF file of this book will be used again for other readings in this course, so you may want to save this file.  Please read the Introduction in its entirety.  This reading presents a case study to help you understand the vast number of topics that fall under the realm of Industrial Organization.
 
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1.2 Methodologies in Industrial Organization   1.2.1 The Structure-Conduct-Performance Paradigm   Note: This is the traditional approach to studying Industrial Organization.  This approach dominated the field from the 1940s to the 1960s, but by the early '70s, a new approach, called the "new industrial economics," gained popularity.  While the former approach was more empirical and linked common elements of market structure observed across industries to their conduct and performance, the latter approach emanated based on the need to develop and test theoretical models of firm conduct.  

  • Reading: University of North Carolina, Chapel Hill: Professor Ralph Byrns’s Economicae: An Illustrated Encyclopedia of Economics: “The Structure-Conduct-Performance Paradigm” Link: University of North Carolina, Chapel Hill: Professor Ralph Byrns’s Economicae: An Illustrated Encyclopedia of Economics: **“The Structure-Conduct-Performance Paradigm” (HTML)
     
    Instructions: Please read this brief article, which explains the main idea behind the Structure-Conduct-Performance Paradigm.
     
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1.2.2 The New Industrial Organization   - Reading: Berkeley Electronic Press: Jeffrey R. Church’s and Roger Ware’s Industrial Organization: A Strategic Approach: "Chapter 1, Section 1.2: Methodologies" Link: Berkeley Electronic Press: Jeffrey R. Church’s and Roger Ware’s Industrial Organization: A Strategic Approach: "Chapter 1, Section 1.2: Methodologies" (PDF)
 
Instructions: If you have not saved this PDF file, you will need to download the PDF file of the book by clicking on the "Download" tab on the right hand side of the webpage.  Please read this section in its entirety to learn what comprises the new industrial organization.
 
Terms of Use: Please respect the copyright and terms of use displayed on the web pages above.

1.3 Methodologies in Industrial Organization   - Reading: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware’s Industrial Organization: A Strategic Approach: "Chapter 1, Section 1.2: Methodologies" Link: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware’sIndustrial Organization: A Strategic Approach:"Chapter 1, Section 1.2: Methodologies" (PDF)
 
Instructions: If you have not saved this PDF file, you will need to download the PDF file of the book by clicking on the "Download" tab on the right hand side of the webpage.  Please read this section in its entirety to learn what comprises the new industrial organization.  This reading covers subunits 1.3.1-1.3.3.
 
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1.3.1 The New Industrial Organization   Note: This subunit is covered by the reading assigned under Unit 1.2. 

1.3.2 The Theory of Business Strategy   Note: This subunit is covered by the reading assigned under Unit 1.2. 

1.3.3 Antitrust Law   Note: This subunit is covered by the reading assigned under Unit 1.2. 

1.4 Topics in Industrial Organization   Note: In this section, you will read a brief overview of the topics we will study in this course. 

  • Reading: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware’s Industrial Organization: A Strategic Approach:"Chapter 1, Section 1.3: Overview of the text" Link: Berkeley Electronic Press: Jeffrey R. Church and Roger Ware’s Industrial Organization: A Strategic Approach: "Chapter 1, Section 1.3: Overview of the text" (PDF)
     
    Instructions: If you have not saved this PDF file, you will need to download the PDF file of the book by clicking on the "Download" tab on the right hand side of the webpage.  Please read this chapter upto 1.3.4 (Strategic Behavior), to learn what we will be covering in this course.  The last two topics: 1.3.5(Issues in Antitrust Economics) and 1.3.6(Issues in Regulatory Economics) are beyond the scope of a one-semester course, so please skip those two sections.
     
    Terms of Use: Please respect the copyright and terms of use displayed on the web pages above.