ECN 231-ECONOMICS OF INDUSTRY

Fall 2002
Dr. Jac Heckelman
Carswell 110
x5923
heckeljc@wfu.edu

http://www.wfu.edu/~heckeljc/jac.htm
 

COURSE OUTLINE

Industrial Economics is concerned with the theory of markets and firm interactions. We will examine how firms arrive at their output and pricing decisions, which strategies they choose to adopt, how their decisions affect the other firms in the industry and general social welfare. This will be done through graphical analysis, algebraic derivations, and case studies.
 

TEXTS

Modern Industrial Organization (Third Edition)

    Dennis W. Carlton and Jeffrey M. Perloff

The Structure of American Industry (Tenth Edition)

    Walter Adams and James Brock (editor)
 

GRADING

There will be two in-class exams (30% each).

Problem sets review theory and applications from class. Homework problems will be reviewed in class, with each student responsbile for presenting one of the problems. This will comprise one portion of the participlation (10%) grade, along with general participation in the class. Group work on the problem sets in encouraged.

Each student will prepare an individual case study of their choosing, which will include a 6-8 page report and presentation in class for 20 minutes (30%) during the last week of class. For this, it will be necessary to present information regarding an issue discussed in the general media, such as the Wachovia merger, cable deregulation, tobacco lawsuits, Microsoft anti-trust case, etc. The report must include background information on industry characterisitcs and market conditions, public policy aspects, and the like, similar to the case studies we will review in class from the Adams and Brock book.
 

EXAMS

The exams will be comprised of 3 problems and 1 short answer question based on the case studies. The tests should not take the entire period. They are designed to allow enough time at the end to double check your answers.
REMEMBER TO BRING A CALCULATOR TO THE EXAMS.
 

PROBLEM SETS

Problem Set #1 due Sep 5
Problem Set #2 due Sep 12
Problem Set #3 due Oct 3
Problem Set #4 due Oct 22
Problem Set #5 due Nov 7
Problem Set #6 due Nov 19
 

SCHEDULE

Cost Concepts Perfect Competition Monopoly Dominant Firms Cartels EXAM 1

Noncooperative Oligopoly

Strategic Behavior Structure and Performance Anti-Trust Regulation EXAM 2