FACULTY OF BUSINESS

Department of Economics

ECON 412 | Course Introduction and Application Information

Course Name
Industrial Organization
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
ECON 412
Fall/Spring
3
0
3
6

Prerequisites
  ECON 101 To succeed (To get a grade of at least DD)
or ECON 102 To succeed (To get a grade of at least DD)
or ECON 100 To succeed (To get a grade of at least DD)
or GEEC 203 To succeed (To get a grade of at least DD)
Course Language
English
Course Type
Elective
Course Level
First Cycle
Mode of Delivery Blended
Teaching Methods and Techniques of the Course -
Course Coordinator -
Course Lecturer(s)
Assistant(s) -
Course Objectives This course aims to provide students an advance level understanding of how certain industry structures form, criterias to differentiate industries, and welfare implications of different organizational forms and market practices.
Learning Outcomes The students who succeeded in this course;
  • Will be able to solve the cost minimization and profit maximization problems of the firm.
  • Will be able to compare perfectly competitive markets, monopolies and oligopolies.
  • Will be able to comprehensively identify the firm behavior under a broad range of industry structures.
  • Will be able to implement a research on the performance of different industry structures.
  • Will be able to compare the effects of economic policies on the performance of industries and the welfare of the society.
Course Description This course examines in detail the different forms of organizational structures industries can form and strategic behavior of firms in such settings. We begin our lectures with a focus on the concept of a firm and its cost structure, developing the incentive mechanisms behind its actions. This will be followed by examination of different market structures in which an industry will be functioning. After studying individual firm behavior, we will concentrate on industries where multiple firms exist. In such industries behavior of a firm depends not only its internal structure (i.e. its cost structure) but also on the actions of the others. In this context we focus on Bertrand and Cournot equilibrium models as well as dynamic price competition and tacit collusion. We will then focus on various business practices of firms in different environments. Special emphasis on topics such as price discrimination, single and multi product pricing both in static and dynamic context will be given.

 



Course Category

Core Courses
Major Area Courses
X
Supportive Courses
Media and Management Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Related Preparation
1 Overview Chapter 1
2 Preliminaries and Game Theory
3 The Firm and Costs / Competition Chapters 2 and 3
4 Competition Chapters 3
5 Monopoly Chapters 4
6 Cartels / Oligopoly Chapters 5 and 6
7 Monopolistic Competition Chapters 7
8 Industry Structure and Performance Chapters 8
9 Price Discrimination Chapters 9
10 Review and MIDTERM
11 Strategic Behaviour / Vertical Integration Chapters 11 and 12
12 How Markets Clear: Theory and Facts Chapters 17
13 Government Policies Chapters 19 and 20
14 Entry Deterrence
15 Review and FINAL EXAM
16 Review of the Semester

 

Course Notes/Textbooks Dennis W. Carlton, Jeffrey M. Perloff, (2005). Modern Industrial Organization (4th Edition). Pearson Press
Suggested Readings/Materials

 

EVALUATION SYSTEM

Semester Activities Number Weigthing
Participation
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
1
20
Presentation / Jury
Project
Seminar / Workshop
Oral Exams
Midterm
1
30
Final Exam
1
50
Total

Weighting of Semester Activities on the Final Grade
2
50
Weighting of End-of-Semester Activities on the Final Grade
1
50
Total

ECTS / WORKLOAD TABLE

Semester Activities Number Duration (Hours) Workload
Theoretical Course Hours
(Including exam week: 16 x total hours)
16
3
48
Laboratory / Application Hours
(Including exam week: '.16.' x total hours)
16
0
Study Hours Out of Class
16
3
48
Field Work
0
Quizzes / Studio Critiques
0
Portfolio
0
Homework / Assignments
1
16
16
Presentation / Jury
0
Project
0
Seminar / Workshop
0
Oral Exam
0
Midterms
1
28
28
Final Exam
1
40
40
    Total
180

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Competencies/Outcomes
* Contribution Level
1
2
3
4
5
1

To be able to acquire a sound knowledge of fundamental concepts, theories, principles and methods of investigation specific to the economic field.

X
2

To be able to apply adequate mathematical, econometric, statistical and data analysis models to process economic data and to implement scientific research for development of economic policies.

X
3

To be able to participate in academic, professional, regional, and global networks and to utilize these networks efficiently.

X
4

To be able to have adequate social responsibility with regards to the needs of the society and to organize the activities to influence social dynamics in line with social goals.

5

To be able to integrate the knowledge and training acquired during the university education with personal education and produce a synthesis of knowledge one requires.

6

To be able to evaluate his/her advance level educational needs and do necessary planning to fulfill those needs through the acquired capability to think analytically and critically.

X
7

To be able to acquire necessary skills to integrate social dynamics into economic process both as an input and an output.

X
8

To be able to link accumulated knowledge acquired during the university education with historical and cultural qualities of the society and be able to convey it to different strata of society.

X
9

To be able to take the responsibility as an individual and as a team member.

10

To be able to attain social, scientific and ethical values at the data collection, interpretation and dissemination stages of economic analysis.

X
11

To be able to collect data in economics and communicate with colleagues in a foreign language ("European Language Portfolio Global Scale", Level B1)

12

To be able to speak a second foreign at a medium level of fluency efficiently.

13

To be able to relate the knowledge accumulated throughout human history to their field of economics.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest

 


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