Industrial Economics for Administrators
Adm 103This course delves into advanced topics in industrial organization, emphasizing the analytical tools and frameworks necessary for strategic decision-making and policy formulation in complex industrial landscapes. It provides a specialized lens through which to examine the disruptive and transformative impacts of Industry 4.0 on market dynamics, firm behavior, global value... Read more
Learning Outcomes
- Upon completion of this course, students will be able to:n1. Analyze advanced industrial organization theories and their application to real-world market structures and firm conduct.n2. Evaluate the economic implications of Industry 4.0 technologies (e.g., AI, IoT, big data, blockchain) on market competition, firm strategy, and economic growth.n3. Assess the efficacy of various competition policies, regulatory frameworks, and industrial strategies in promoting innovation and welfare in the digital era.n4. Formulate administrative responses and strategic recommendations to challenges posed by digital platforms, network effects, and evolving global value chains.n5. Critically discuss the impact of automation and artificial intelligence on labor markets, productivity, and the future of work.n6. Apply economic principles to design and implement policies that foster a competitive, resilient, and innovative industrial environment.
Course Description
This course delves into advanced topics in industrial organization, emphasizing the analytical tools and frameworks necessary for strategic decision-making and policy formulation in complex industrial landscapes. It provides a specialized lens through which to examine the disruptive and transformative impacts of Industry 4.0 on market dynamics, firm behavior, global value chains, and labor markets.
Course Curriculum
1. Foundations of Industrial Economics and Market Structure
1 lessonsThis module introduces the core paradigms and analytical frameworks of industrial organization. It establishes a foundational understanding of market structures, their determinants, and the implications for firm behavior and performance. * Learning Outcomes: * Explain the Structure-Conduct-Performance (SCP) paradigm and its critiques. * Differentiate various market structures (perfect competition, monopoly, oligopoly, monopolistic competition) and their characteristics. * Analyze concepts of market definition, concentration, and barriers to entry. * Apply basic game theory concepts to model strategic interactions between firms. * Prerequisite Knowledge: Basic understanding of microeconomics (supply and demand, elasticity, costs, firm theory). * Detailed Lesson Descriptions: * Lesson 1.1: Introduction to Industrial Organization & SCP Paradigm (2 hours) * Description: Overview of industrial economics, its scope, and the historical development of the Structure-Conduct-Performance (SCP) paradigm. Examination of its strengths and weaknesses. * Learning Outcomes: Define industrial economics; explain the SCP paradigm and its policy implications; identify key critiques of SCP. * Prerequisite: Basic microeconomics. * Lesson 1.2: Market Structure: Definition, Measurement, and Determinants (3 hours) * Description: Detailed analysis of market definition (e.g., SSNIP test), measures of market concentration (e.g., HHI, Concentration Ratios), and various types of barriers to entry and exit. * Learning Outcomes: Apply tools for market definition; calculate and interpret market concentration measures; categorize and evaluate different types of entry barriers. * Prerequisite: Basic microeconomics. * Lesson 1.3: Introduction to Game Theory for Industrial Analysis (3 hours) * Description: Fundamental concepts of game theory, including simultaneous and sequential games, Nash equilibrium, and subgame perfect Nash equilibrium. Applications to simple oligopoly models (e.g., Cournot, Bertrand). * Learning Outcomes: Identify components of a game; solve for Nash equilibria in simple matrix games; apply game theory to basic oligopoly pricing and quantity decisions. * Prerequisite: Basic microeconomics.
- Conduct-Performance (SCP) paradigm and its critiques.