Southeast Missouri State University

EC 425. Industrial Organization.

EC425 Competitive Economic Strategies
SOUTHEAST MISSOURI STATE UNIVERSITY
Department of Economics and Finance
COURSE SYLLABUS, EC425, Competitive Economic Strategies


Revised in July 1998

I. Catalog Description and Credit Hours of Course

The study of industrial organization, including market structure, conduct and performance. Applies microeconomic theory to industry case studies and research. (3)

II. Prerequisite(s)

MA134 College Algebra

EC215 Principles of Microeconomics

III. Purposes or Objectives of the Course

A. Sutdents should be able to access the empirical literature in the areas of industrial organization and applied microeconomics.

B. Students should be able to demonstrate their understanding of the interaction between economic theory and the business world.

C. Students should be able to analyze policy issues which contain elements related to market structures and competitive strategies.

D. Students should be able to demonstrate their understanding of economic strategies and the consequences of those strategies.

IV. Expectations of Students

A. Familiarity with assigned reading materials

B. Participation in class discussion

C. Completion of assigned written work

V. Course Outline

A. Introduction

1. Basic microeconomic concepts

2. Theories of competition and market power

3. Competitive economic strategie

B. Market structure

1. Defining the market

2. Degrees of competition

C. Performance and market structure

1. Prices

2. Profits

3. Efficiency

4. Innovation

D. Determinants of market structure

1. Capital markets

2. Mergers

3. Economies and diseconomies of scale

E. Behavior

1. The firm

2. Dominant firm strategies

3. Price discrimination

4. Predatory activities

5. Tight oligopolies

a. Theories

b. Behavior in real markets

c. Competitive strategies

F. Vertical Relationships

G. Diversification

H. Conclusions

VI. Textbook(s) and/or Other Required Materials or Equipment

Market Power, Competition, and Antitrust Policy, William Baldwin, Irwin, 1987.

VII. Basis of Student Evaluation

Performance on tests, including the regularly scheduled final exam, assignments, reports, and other activities required for the course. Library assignments will be required, including either a term paper or abstracts of articles from the industrial organization/applied microeconomics literature.

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