Markets and Strategies II
Spring Semester 2009
Markets and STRATEGIES II
SIZE: Laboratory Course, 4+2 hrs.
FIRST CLASS: Monday, Feb 16, 2009
TIME: Monday, 3.30 – 7.00 p.m.
LOCATION: L7, 3-5, Room P 044
OFFICE HOURS: Peitz: Wednesday 11.00 a.m. – 12.00 p.m.
(upon prior appointment)
Stahl: Monday 2.00 – 3.00 p.m.
(upon prior appointment)
Appointments under 181-1880
The course is
- part of the diploma course sequence under the same title
- part of the elective in business studies entitled “Information and Competition”
- an elective to second year doctoral students
Diploma students: Microeconomics I – III or equivalent, M&S I or equivalent
Doctoral Students: Microeconomics I – II or equivalent, M&S I or equivalent
The grade for the course is based on active participation in class (50%) and the presentation of solutions to the case problems presented below, in form of four team papers (50 %).
CONCEPT OF THE COURSE SEQUENCE:
The course sequence consists of three blocks. M&S I, a four hour lecture course (plus 2 hr. Lab) held in the Fall Semester; Seminar on M&S I, a block seminar held at the beginning of the Spring Semester; and the present interactive four+two hour case study course held in the Spring Semester. Participation in both the seminar and the case study course necessitates participation in the Fall Semester course (or equivalent). Participation in the seminar is recommended, but not required for participation in the Spring Semester course.
The philosophy that has led to the course sequence is as follows: The analysis of a real life strategic planning problem necessitates the reduction of the problem to its essentials. The Fall Semester course is designed to equip the student with the tools relevant for the analysis of such strategic problems at the level of the firm, as well as the level of an industry. Depending on the industry structure, both are prerequisites for the analysis of regulatory and competition policy.
Emphasis is placed not only on the capability to read the literature on existing models, but also on the generation of new ones that are appropriate for the analysis of specific real life problems. In contrast to the presentation of recipes, the Fall Semester course is designed to equip the student with micro theoretic and game theoretic tools to attack strategic problems.
In the present Case Study course the student is challenged with the development of new modelling approaches. Towards this, we present a sequence of four cases from different industries. We will form teams of students. The teams will compete against each other in developing answers to two strategic questions raised at the end of each case presentation. The first question will involve a decision problem for a key industrialist in the relevant industry; and the second one a regulatory or competition policy decision problem for that industry. There will be coaching sessions for each case in which the instructors will advise the teams towards the development of constructive models towards these answers.
We will form teams of students. The teams will compete against each other in developing answers to two strategic questions raised at the end of each case presentation. The first question will involve a decision problem for a key industrialist in the relevant industry; and the second one a regulatory or competition policy decision problem for that industry. There will be regular coaching sessions in which the instructors will advise the teams towards the development of constructive models towards these answers.
Students are allocated to teams randomly for cases 1+2, and again for cases 3+4. Coaching sessions may be held outside the scheduled hours. Konrad Stahl will be in charge of Cases 1 and 2, Martin Peitz of Cases 3 and 4. The course will be held in English language.
The main reference texts for the course will be
- Belleflamme, P. and M. Peitz (2009): Industrial Organization: Markets and Strategies, Cambridge, UK: Cambridge University Press, forthcoming (available as draft pdf-file)
- Tirole, J. (1989): The Theory of Industrial Organization, Cambridge, MA: MIT Press
We will assign additional material especially to doctoral students.
Introduction: From case material to models
Introduction to Case 1: Automotive Sales: Vertical Restraints in the Automotive Distribution Sector
Coaching Sessions Case 1
Introduction to Case 2: Advertising in the Internet: The Google-DoubleClick Acquisition
Student Team Presentations Case 1
Coaching Sessions Case 2
Student Team Presentations Case 2
Introduction to Case 3: Reaction to Generics in the Pharmaceutical Industry
Coaching Sessions Case 3
Introduction to Case 4: Vertical Restraints in the Publishing Industry
Student Team Presentations Case 3
Coaching Sessions Case 4
Student Team Presentations Case 4