Course title |
Industrial Organization and Firm Strategy |
Semester |
110-2 |
Designated for |
COLLEGE OF SOCIAL SCIENCES GRADUATE INSTITUTE OF ECONOMICS |
Instructor |
FONG PO HAN |
Curriculum Number |
ECON5107 |
Curriculum Identity Number |
323EU0260 |
Class |
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Credits |
3.0 |
Full/Half Yr. |
Half |
Required/ Elective |
Elective |
Time |
Monday 2,3,4(9:10~12:10) |
Remarks |
Restriction: juniors and beyond OR Restriction: MA students and beyond OR Restriction: Ph. D students The upper limit of the number of students: 30. |
Ceiba Web Server |
http://ceiba.ntu.edu.tw/1102ECON5107_ |
Course introduction video |
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Table of Core Capabilities and Curriculum Planning |
Table of Core Capabilities and Curriculum Planning |
Course Syllabus
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Please respect the intellectual property rights of others and do not copy any of the course information without permission
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Course Description |
This course takes a formal approach to analyzing the way firms make production and sales decisions and interact strategically with each other in the marketplace. We begin with a study of optimal pricing policies, including versioning, bundling, and related market segmentation strategies. In the second part of the course, we analyze strategies for firm dominance, especially
through the deterrence of potential competition. The list of such strategies includes capacity expansion, product proliferation, and exclusive dealing contracts. In the third part of the course we apply game theory to the study of oligopoly interaction, focusing on pricing and output strategies in a dynamic setting. In the final part or the course we introduce some of the most useful cutting-edge analytical frameworks in the age of fast technological changes, including those of multi-sided platforms, standard wars and business ecosystems.
This course has a strong entrepreneurial component; we study all the essential issues in the literature of Industrial Organization from the viewpoint of business decision-makers. |
Course Objective |
The main goal of the course is to develop the basic intuition for pricing and other forms of strategic behavior on the part of firms, both when faced with complex patterns of consumer demand and when faced with strategic competitors. |
Course Requirement |
1. Students are required to have taken a semester of microeconomics. Students are also expected to be comfortable with basic algebra and calculus,
including systems of equations, derivatives, logarithms and NPV calculations.
2. In addition to solving economic models, business case reading and active participation in classroom discussion are crucial activities required for this course. Every student taking or sitting in this course has to pay license fees for Harvard business cases (around NT$300, with the actual amount to be calculated later). |
Student Workload (expected study time outside of class per week) |
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Office Hours |
Appointment required. Note: Please arrange an appointment in advance by email. |
References |
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Designated reading |
1. Lecture Notes based on INTRODUCTION TO INDUSTRIAL ORGANIZATION by Luis Cabral
2. CO-OPETITION by Adam M. Brandenburger and Barry J. Nalebuff
3. INFORMATION RULES by Carl Shapiro and Hal R. Varian
4. MATCHMAKERS by David S. Evans and Richard Schamlensee
5. 7 POWERS: THE FOUNDATIONS OF BUSINESS STRATEGY by Hamilton Helmer
5. Mini Cases by Luis Cabral (free)
・Monsanto’s Roundup
・Wednesdays at Cinemex
・DeBeers
6. Harvard Business Cases (license fees required):
・Rent the Runway
・Cola Wars Continue: Coke and Pepsi in 2010
・Airbnb, Etsy, Uber: Acquiring the First Thousand Customers
・TikTok & Kuaishou
・Artsy: The Rise of Online Commerce
・Gogoro: From Electric Scooter to Energy Platform
7. Honest Tea Business Plan |
Grading |
No. |
Item |
% |
Explanations for the conditions |
1. |
Final Exam |
50% |
Scheduled on 5/30 |
2. |
Assignments & Case Discussion |
40% |
Group Work |
3. |
Quizzes in Class |
10% |
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|
Week |
Date |
Topic |
Week 1 |
2/14 |
Course Introduction
Topic 1: Basic Pricing Principles |
Week 2 |
2/21 |
Topic 2: Entry Deterrence
Case Discussion: Roundup, NutraSweet |
Week 3 |
2/28 |
(No Class) |
Week 4 |
3/07 |
Topic 3: How to Evaluate a Business Plan?
Case Discussion: Honest Tea, Rent the Runway |
Week 5 |
3/14 |
Topic 4: Pricing in Practice
Case Discussion: Wednesdays at Cinemex |
Week 6 |
3/21 |
Topic 5: Competition is for Losers |
Week 7 |
3/28 |
Experiment: Farmville |
Week 8 |
4/04 |
(No Class) |
Week 9 |
4/11 |
Topic 6: Oligopoly Competition |
Week 10 |
4/18 |
Topic 7: Tacit Collusion
Case Discussion: DeBeers |
Week 11 |
4/25 |
Topic 8: Boundaries of the Firm
Case Discussion: Cola Wars |
Week 12 |
5/02 |
Topic 9: Two-Sided Market
Case Discussion: Acquire the First Thousand Customers |
Week 13 |
5/09 |
Topic 10: Technological Change
Case Discussion: TikTok & Kuaishou, Artsy |
Week 14 |
5/16 |
Topic 11: Standard Wars
Case Discussion: Electric Scooters |
Week 15 |
5/23 |
Topic 12: Building Business Ecosystem
Case Discussion: Welcome to Metaverse |
Week 16 |
5/30 |
Final Exam |