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Course Syllabus

Master 2021/2022

Empirical Industrial Organization

Type: Elective course (Economics: Research Programme)
Area of studies: Economics
Delivered by: Department of Applied Economics
Where: Faculty of Economic Sciences
When: 2 year, 3 module
Mode of studies: offline
Open to: students of all HSE University campuses
Instructors: Ekaterina Kazakova
Master’s programme: Academic Economics
Language: English
ECTS credits: 3
Contact hours: 40

Course Syllabus

Full Syllabus

Abstract

This course is designed to introduce students to the tools for the empirical analysis of industries and markets. Broadly speaking, empirical industrial organization (EIO) combines empirical methods, data, and models to analyze imperfect competition and the organization of markets. Modern methods of the EIO are widely applied in merger review, antitrust litigation, regulatory decision-making, marketing, and other related fields. Moreover, the increasing availability of firm- and consumer-level data ("big data") opens new empirical questions, that cannot be answered without understanding the basics of the EIO analysis. In this course, we will cover traditional empirical models related to (1) demand estimation for homogeneous and differentiated products; (2) production function estimation and firm productivity; (3) identification of conduct; (4) static entry/exit models. The course is associated to exercise sessions devoted to practical applications. We will replicate some empirical workhorse models using software like R and MATLAB.
Learning Objectives

Learning Objectives

  • You are expected to acquire a broad knowledge of the key topics and techniques of empirical industrial organization.
  • You are expected to be able to conduct your own independent industrial analysis using real-life data.
Expected Learning Outcomes

Expected Learning Outcomes

  • Ability to estimate demand.
  • Ability to estimate production function.
  • Ability to model market entry.
  • Coming to the same level of knowledge of the needed econometric tools.
  • Deepen knowledge of the previously discussed topics.
  • Learning methods to detect collusion on the data.
Course Contents

Course Contents

  • Introduction to Empirical Industrial Organization
  • Competition, collusion and cartel
  • Estimation of demand for differentiated goods
  • Estimation of production functions
  • Estimation of static entry/exit games
  • Extensions and applications or additional selected topics in EIO
Assessment Elements

Assessment Elements

  • non-blocking Homework 1
    The content of homework assignments will be the application of learned estimation techniques in practice and the replication of related papers.
  • non-blocking Term project
    Term project evaluation consists of the short essay in a form of a research proposal.
  • non-blocking Exam
    The final written exam will mainly consist of open questions related to the practical application of EIO for industry analysis.
  • non-blocking Homework 2
  • non-blocking Homework 1
    The content of homework assignments will be the application of learned estimation techniques in practice and the replication of related papers.
  • non-blocking Term project
    Term project evaluation consists of the short essay in a form of a research proposal.
  • non-blocking Exam
    The final written exam will mainly consist of open questions related to the practical application of EIO for industry analysis.
  • non-blocking Homework 2
Interim Assessment

Interim Assessment

  • 2021/2022 3rd module
    0.3 * Exam + 0.2 * Term project + 0.25 * Homework 2 + 0.25 * Homework 1
Bibliography

Bibliography

Recommended Core Bibliography

  • Belleflamme, P., & Peitz, M. (2010). Industrial Organization : Markets and Strategies. Cambridge, UK: Cambridge eText. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=324082
  • Bresnahan, T. F., & Reiss, P. C. (1991). Entry and competition in concentrated markets. Journal of Political Economy, 99(5), 977. https://doi.org/10.1086/261786
  • Olley, G. S., & Pakes, A. (1996). The Dynamics of Productivity in the Telecommunications Equipment Industry. Econometrica, (6), 1263. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.ecm.emetrp.v64y1996i6p1263.97
  • Steven T. Berry. (1994). Estimating Discrete-Choice Models of Product Differentiation. RAND Journal of Economics, (2), 242. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.rje.randje.v25y1994isummerp242.262

Recommended Additional Bibliography

  • Berry, S., Levinsohn, J., & Pakes, A. (1995). Automobile Prices in Market Equilibrium. Econometrica, (4), 841. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.ecm.emetrp.v63y1995i4p841.90

Authors

  • KAZAKOVA EKATERINA ALEKSANDROVNA