Economics 845      Industrial Organization I

Instructor: Ruqu Wang
Dunning Hall, Room 304
Teaching Assistant:  Alex Arsenault,

Link to Announcements for ECON 845 (updated September 17, 2020)

Course Description:
In this course, we study the fundamental theory in Industrial Organization. Topics include monopoly, product quality, price discrimination, vertical control, static and dynamic price competition, product differentiation, entry, reputation, limit pricing, and research and development. Our focus is on the theoretical aspects of each topic. The structure of the lectures follows Tirole’s The Theory of Industrial Organization, and recent papers related to the topics will be discussed.
The purpose of this course is to provide students with the theory of industrial organization which is widely used in other fields of economics, especially in empirical industrial organization. Homework will be assigned from time to time. Working independently on the homework is strongly recommended, as this is the only effective way to prepare you for the exams. On the other hand, study groups discussing course materials (excluding the homework assignments) are encouraged.
This course is for MA and Ph.D students.
Grading (tentative):
class participation -- 20%
homework -- 20%
midterm assessment (oral exam) -- 20% 
term paper & presentation -- 40%
Required Textbook:
The Theory of Industrial Organization, by Jean Tirole, MIT Press, 1988
1. Oz Shy, 1995, Industrial Organization: Theory and Applications, The MIT Press.
2. Luis Cabral, 2000, Introduction to Industrial Organization, MIT Press.
3. Handbook of Industrial Organization, Volumes I and II (1989, Edited by R. Schmalensee and R.D. Willig), and III (2007, Edited by M. Armstrong and R. Porter), North-Holland.
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