MBA 6420 - The Economics of Industry

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This course will focus on the behavior of the individual firm in different market settings, competitive and imperfectly competitive. We are concerned with the strategic behavior of firms under different industry structures as they struggle with the pressures of competition. Students will study how differing levels of the firm’s market power impacts pricing and output policies, product differentiation, and barriers to entry. In addition, the student will learn the basics of game theory and use it to analyze the strategic behavior of firms. Topics will include different types of pricing strategies including price discrimination, pricing of product lines, predatory pricing, peak load pricing, and entry deterrence. Issues of non-price competition such as research and development, information, externalities, moral hazard, and firm structure will also be discussed. The course includes both supplemental readings designed to illustrate real-world applications of the theoretical principles developed as well as in-class experiments in strategic behavior designed to illustrate certain theoretical conclusions. Additional foundation course work in economics may be required prior to course registration as per department advisement and student’s program of study requirements. Prerequisite: MBA 6040, or equivalent course in economics.