|This course applies tools from microeconomics, game theory, industrial organization, and theory of the firm to analyze decisions facing firms in a competitive environment. The specific focus is on strategic decisions where each firm's profits depend critically on the actions chosen by its competitors. Classes combine case analysis and discussions with lectures. Topics include pricing, positioning, strategic commitment, firm structure, and entry and exit.|
|A CoursePack of readings and a textbook are required. Additional texts are optional.|
|Based on class participation, a mid-term, and a final.|
|Sample Exam Questions/Problem Sets:|
|True or False: There are a total of 3 companies that sell lumber in a given market. Currently, the companies sell their entire annual lots once a year to large buyers who visit their headquarters. Due to technological change, the sale of lumber moves online, with the same buyers now buying smaller quantities on a weekly basis. We should expect the profits of the 3 lumber companies to increase.
Answers are graded based on the quality of the argument.
Description and/or course criteria last updated: 07/2012
|Course Conditions and Course Related Items:|