Bachelor
2019/2020![Expected Learning Outcomes](/f/src/global/i/edu/results.svg)
![Course Contents](/f/src/global/i/edu/sections.svg)
![Interim Assessment](/f/src/global/i/edu/intermediate_certification.svg)
![Bibliography](/f/src/global/i/edu/library.svg)
Economic Theory
Type:
Compulsory course (HSE and University of London Parallel Degree Programme in Management and Digital Innovation)
Area of studies:
Business Informatics
Delivered by:
School of Business Informatics
Where:
Graduate School of Business
When:
2 year, 1, 2 module
Mode of studies:
offline
Instructors:
Danil Fedorovykh
Language:
English
ECTS credits:
4
Contact hours:
64
Course Syllabus
Abstract
Economic Theory encompasses a broad spectrum of fields. This course focuses on Market Theory (Theory of Industrial Organisation), which is a necessity for future managers. This field is concerned with the study of competition. Market participants interact strategically in setting prices, investing in capacities, R&D, advertisement etc. If there are many firms, a market may become close to perfect competition. A market with a small number of firms is described as an oligopoly, which can turn into a monopoly if competitors merge. We will discuss pricing strategies, non-price competition, entry, network effects, innovations, antitrust policies
Expected Learning Outcomes
- Be aware of the basics of market structures theory: competition, monopoly, oligopolies
- Solve theoretical economic questions regarding perfect and imperfect competition
- Make a market analysis using the theoretical background
- Understand firms’ pricing strategies
- Participate in basic debates about competition and pricing
- Use basic analytical tools of market analysis
Course Contents
- Technology, costs and competitionMicroeconomic concept of a firm. Types of markets.
- MonopolyDefinition of a monopoly. Linear pricing and inefficiency. Types of price discrimination
- Introduction to Game TheoryDefinition of a game. Nash Equilibrium. Normal and extended form games. Subgame perfection
- Basic Oligopoly ModelsCournot, Stackelberg, and Bertrand models with homogenous good.
- DifferentiationHotelling linear city model and its extensions
- Anticompetitive BehaviourEntry deterrence. Price maintenance. Predatory pricing
- MergersHorizontal and vertical mergers. Price and other vertical restraints
- Non-Price CompetitionAdvertising. Investment in R&D
- Network EffectsMarkets with network externalities. Critical mass
- Behavioural IOMarkets in behaviour economics. Consumer behaviour and consumer protection. Bounded rationality of actors
Interim Assessment
- Interim assessment (2 module)0.4 * Exam + 0.15 * Group presentation 1 + 0.15 * Group presentation 2 + 0.1 * Test 1 + 0.1 * Test 2 + 0.1 * Test 3
Bibliography
Recommended Core Bibliography
- Belleflamme,Paul, & Peitz,Martin. (2015). Industrial Organization. Cambridge University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.cup.cbooks.9781107687899
Recommended Additional Bibliography
- Shy, O. (1995). Industrial Organization : Theory and Applications. Cambridge, Mass: The MIT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=11382