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|| TINBERGEN INSTITUTE || ERASMUS
UNIVERSITY ROTTERDAM ||
Master in Economics of Markets and Organizations
Programme in
Economics
Erasmus University Rotterdam
Course WeCo
FEW7144 "Games, Strategies and Markets"
 Objective
This course has two objectives. The first objective is
that students confront recent contributions to the Industrial Organization
literature, familiarize themselves with the way economics research is
conducted and critically assess these contributions. The second objective is
that students come out with their own research ideas and investigate them.
Content
During this workshop we will discuss advanced topics in
Industrial Organization, such as Network externalities, Research and
Development, Two-sided Markets, Advertising, Consumer Search, etc. Students
should organize themselves in groups of 3 (or 4 in case we are too many) and
each group is required to present and discuss recent contributions to the
literature in the classroom. These contributions can be chosen from a list
that will be distributed at the beginning of the course. Students may also
make their own suggestions and I will decide whether those are acceptable or
not.
The different groups must come out with their own research
proposal to be investigated; their ideas may be empirical or theoretical but
always related to the topics examined in class. Upon developing a research
strategy, students will discuss it with me in my office and we will decide on
the viability and interest of the proposal. I will assist students in doing
their research. Results should be gathered in a research-paper, which will be
presented to the rest of the students and delivered to me at the end of the
course.
Required literature
Articles from leading international journals such as
American Economic Review, Rand Journal of Economics, Journal of Industrial
Economics, etc.
Grading
Grades will be based on student presentations, critical discussion of
papers, own research and, possibly, an exam.
Schedule of presentations
1. Imperfect Price Information, Advertising and Search
14/01/04: Moraga
Varian,
Hal (1980), "A model of sales," American Economic Review 70,
651-659.
Burdett,
K. and K. Judd (1983): “Equilibrium Price Dispersion,” Econometrica 51-4,
955-969. (only part on non-sequential search)
21/01/04: Lieke Boonen and Louis Cabanilla
Stahl,
D.O. (1994), "Oligopolistic Pricing and Advertising," Journal of
Economic Theory 64, 162-177.
Stahl,
D. O. (1989), "Oligopolistic Pricing with Sequential Consumer
Search," American Economic Review 79, 700-712.
Other
articles of interest:
-
Bester, H. and E. Petrakis (1995), "Price Competition and Advertising in
Oligopoly," European Economic Review 39, 1075-1088.
-
Grossman, G. M. and C. Shapiro (1984), "Informative Advertising with
Differentiated Products," Review of Economic Studies 51, 63-81.
-
Stahl, D. O. (1996), “Oligopolistic Pricing with Heterogeneous Consumer
Search,'' International Journal of Industrial Organization 14,
243-268, 1996.
-
Baye and Morgan (2001), "Information Gatekeepers on the Internet and the
competitiveness of Homogeneous Product Markets," American
Economic
Review 91(3), 454-474.
-
Galeotti and Moraga-González (2003): Entry and Competition in Segmented
Markets, unpublished manuscript (Available from the homepage of the authors).
2.
Two-sided markets
28/01/04:
Mark van de Houwe, Sander
Oudmaijer and Leon Soldaat
B.
Caillaud and B. Jullien (2003): Chicken and Egg: competition among
intermediation service providers, Rand Journal of Economics 34-2, 309-328.
Paul Dijkgraaf, Frithjof
van Rems and Matijn de Vree
J.-C.
Rochet and J. Tirole (2001): Platform Competition in Two-Sided Markets,
mimeograph. (Available from the homepage of the authors).
04/02/04:
Mark van de Houwe, Sander
Oudmaijer and Leon Soldaat
To
be announced
Paul Dijkgraaf, Frithjof van Rems and Matijn de Vree
J.-C.
Rochet and J. Tirole (2002): Cooperation among competitors: some economics of
payment card associations, Rand Journal of Economics 33-4, 549-570.
11/02/04: Marcella Petri, Madeleine Tjon Pion Gi and Rob de Wit
M.
Armstrong (2002): Competition in Two-sided Markets, mimeograph. (Available
from the homepage of the author).
J.
Bulow and J. Levin (2003): Matching and Price Competition, mimeograph.
(Available from the homepage of the author).
Other
articles of interest:
J.
A. Hausman, G. K. Leonard and J. Tirole (2003): On nonexclusive membership in
competing joint ventures, Rand Journal of Economics 34-1, 43-62.
3.
Network Externalities.
18/02/04:
Antonella Ardizzone, Sander Veldhuizen and Yomi Winter
Farrell,
J. and G. Saloner (1986), "Installed Base and Compatibility: Innovation,
Product Pre-announcements, and Predation," American Economic Review 76,
940-955.
Tom Neven, Michiel Rodrigo
and Nathanael Vellekoop
Carmen
Matutes and Pierre Regibeau (1988): "Mix and Match": Product
Compatibility without Network Externalities, Rand Journal of Economics 19-2,
221-234.
25/02/04:
Antonella Ardizzone, Sander Veldhuizen and Yomi Winter
Katz,
M. L. and Shapiro, C. (1985), "Network Externalities, Competition and
Compatibility," American Economic Review 75, 424-440.
Tom Neven, Michiel Rodrigo
and Nathanael Vellekoop
To
be announced.
Other
articles of interest.
Farrel
and Saloner (1985): Standardization, Compatibility and Innovation, Rand
Journal of Economics 16-1, 70-83, 1985.
Katz,
M. L. and Shapiro, C. (1986), "Technology Adoption in the Presence of
Network Externalities," Journal of Political Economy 94, 821-841.
Glenn
Ellison and Drew Fudenberg (2000): The Neo-Luddite's Lament: Excessive
Upgrades in the Software Industry, Rand Journal of Economics, 31 (2), 253-272,
2000.
4. Research and Development
03/03/04:
Michiel Tukker, Rens van de
Ven and Martijn Rijnhart
M.
Katz (1986): An analysis of cooperative R& D, Rand Journal of
Economics, 17, 527-543.
Antoinette Kemper and Tom Klein Rubbonhaar
S.
Goyal and J.L. Moraga: R&D Networks (2001), Rand Journal of Economics
32-4, 686-707.
10/03/04:
Michiel Tukker, Rens van de
Ven and Martijn Rijnhart
M.
I. Kamien, E. Muller and I. Zang (1992), Research joint ventures and R&D
cartels, American Economic Review, 85(5), 1293-1306.
Antoinette Kemper and Tom Klein Rubbonhaar
S.
Goyal, A. Konovalov and J.L. Moraga: Hybrid R&D (2003), mimeograph
(Available
from the homepage of the author).
Other
articles of interest:
D.
Leahy and J. P. Neary (1997), Public policy towards R&D in oligopolistic
industries, American Economic Review 87, 642-662.
H.
Cremer and J.-F. Thisse (1994): Commodity Taxation in a Differentiated
Oligopoly, International Economic Review 35, 613-633.
M.
Motta (1993): Endogenous quality choice: price vs. quantity competition,
Journal of Industrial Economics 2, 113-132.
 moraga@tinbergen.nl
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