Industrial Organization I
Fall 2002 GMU Syllabus

Economics 844, meets 7:20-10:00pm, Monday, during Fall 2002, in room Enterprise Hall 318.

Instructor: Robin D. Hanson, Asst. Professor, Economics (,
Office Hours: Officially Monday 10:30-12. But I'm usually in at Carow Hall 10A. Call ahead (703-993-2326) if you want to be sure.

Catalog Entry:

Econ 844 Industrial Organization and Public Policy I (3:3:0). Prerequisite: ECON 611 or permission of instructor. Structure of American industry and underlying determinants. Analysis of structure and conduct on industrial performance in light of theory and empirical evidence. Rational antitrust policy and analysis of impact on structure and performance.
Required Texts:
Oz Shy, Industrial Organization, Theory and Applications, MIT Press, ISBN 0-262-69179-5, 1996. (errata)
F.M. Scherer, Industry, Structure, Strategy, and Public Policy, Harper Collins, ISBN 0-673-99289-6, 1996.
Optional Texts:
Carl Shapiro, Hal R. Varian, Information Rules: A Strategic Guide to the Network Economy, Harvard Business School Press, ISBN: 087584863X, 1998.
Jean Tirole, The Theory of Industrial Organization, MIT Press, ISBN 0-262-20071-6, 1994.
Dennis Carlton and Jeffrey Perloff, Modern Industrial Organization, Third Edition, Addison-Wesley, ISBN 0-321-01145-7, 2000.
Jeffrey Church and Roger Ware, Industrial Organization, Irwin McGraw Hill, 2000, ISBN 0-256-20571-X
Assignments: Lecture Schedule
26 Aug 2,3 1 Game Theory, Micro Review
2 Sept Holiday
9 Sept4,5 Perfect Competition, Monopoly
16 Sept6 Markets for Homogeneous Products
23 Sept7 2 Markets for Differentiated Products, Pricing Info
30 Sept8 Concentration, Mergers, and Entry Barriers
7 Oct Midterm I
15 Oct 11,16 Ads, Price Dispersion and Search Theory
21 Oct 9 Research and Development
28 Oct 10 7,8 Networks, Compatibility and Standards
4 Nov 5,6 Lock-In
11 Nov Midterm II
18 Nov 12 Quality, Durability, and Warranties
25 Nov 13 Pricing Tactics
2 Dec 14 Marketing Tactics
16 Dec Final Exam 7:30 p.m. - 10:15 p.m.
Misc. Articles
Sam Peltzman, Review of The Handbook of Industrial Organization, The Journal of Political Economy, Vol. 99, No. 1. (Feb., 1991), pp. 201-217.

Hal Varian, How to Build an Economic Model in your Spare Time

Tyler Cowen, Law as a public good, Economics and Philosophy, 8:249-267, 1992. See also Law as a Private Good, and Market Provision of Law, Networks, and the Paradox of Cooperation.

Robin Hanson, Location Discrimination in Circular City, Torus Town, and Beyond

Misc. New Economy Articles