COURSE SYLLABUS

Introduction Industrial Organization 7.5 credits

Marknadsanalys
First cycle, N0027N
Version
Course syllabus valid: Autumn 2019 Sp 1 - Present
The version indicates the term and period for which this course syllabus is valid. The most recent version of the course syllabus is shown first.

Syllabus established
by Head of the Department of Business Administration and Social Sciences 19 Feb 2010

Last revised
by Director of Undergraduate Studies Daniel Örtqvist, Department of Business Administration, Technology and Social Sciences 18 Feb 2019

Education level
First cycle
Grade scale
U G VG *
Subject
Economics
Subject group (SCB)
Economics
Main field of study
Business Administration, Economics

Entry requirements

In order to meet the general entry requirements for first cycle studies you must have successfully completed upper secondary education and documented skills in English language and Introductory Microeconomics (N0008N) or equivalent.


More information about English language requirements


Selection

The selection is based on 1-165 credits.



Course Aim
The main aim with the course is to create a deepened understanding and knowledge about how economic theories are applied in firms. The aim with the course is further to use quantitative data in order to analyze economic problems. This implies that the students after the course should know how to:
a)    Estimate the value of firm’s assets by understanding the time-value of money. Use demand and supply theories as a qualitative and quantitative instrument to make future predictions of prices and quantities. Calculate different elasticities and use these in order to analyze changes in revenues, prices and sold entities.
b)    Identify and explain different market structures, and the different strategies that firms can use with the purpose of increasing the firm’s market power. Calculate profit maximizing prices and quantities given different market structures.
c)    Conduct and interpret the results from basic regressions. Process collected data, estimate demand functions and elasticities in order to analyze and explain how relevant quantitative data can be applied in a firm.
d)    Explain and argument for how the different strategies that firms’ can use are seen from a competition authority point of view.
e)    Analyze and solve firm related problems by using the economic theory that is examined in the course. The students are expected to solve the problems in smaller groups, and sometimes by using quantitative data.
f)    Give oral presentations of economic analyses in a clear and structured manner.
g)    Search and analyze information in business press with the aim of solving real problems that a firm can meet, by applying economic theory and methods.
h)    Present economic analyses in a clear and structured manner.

Contents
The course Introduction Industrial Organization focuses on:
•    The fundamentals of managerial economics
•    Market forces: demand and supply
•    Quantitative demand analysis
•    The organization of the firm
•    The nature of industry
•    A manager’s guide to government in the marketplace
•    Managing in competitive, monopolistic and monopolistically competitive markets
•    Basic oligopoly models
•    Pricing strategis for firms with market power
•    The economics of information
•    Advanced topics in business strategy

Realization
The course consists of lectures (not mandatory), and two mandatory occasions with group exercises, one mandatory seminar and one mandatory project. The aim with the group exercises is for students to solve problems by applying economic theories and methods, work in groups, and practice presentation techniques. The aim with the seminar is to discuss and examine how competition authorities work in a potentially illegal situation on the market. The aim with the project is to find and analyze company information in business press, solve real problems that firms meet by applying economic theories and methods, work in groups, and present analyses in a clear and structured manner.

Examination
The examination is:
•    Written exam at the end of the course (5 ECTS) that mainly examines aim a), b) and c).
•    Presentation of 3 mandatory exercises during the course (group exercises/seminar) á 0,5 ECTS (1,5 ECTS) that mainly examines aim c), d), e) and f).
•    Project during the course (1 ECTS) that mainly examines aim g) and h).

The grade on the written exam will determine the grade on the course. The grades are pass (G), pass with honor (VG) and fail (U).

Remarks
Students must register for the courses themselves or contact ETS educational administration, eduets@ltu.se not later than three days after the quarter commences. Failure to do so can result in the place being lost. This rule also applies to students with a guaranteed place.

Undergraduate level, progression B

Transition terms
Due to similar content, the course can not be included in a degree together with the course Introduction Industrial Organization (N0009N) or other courses with similar content.

Examiner
Linda Wårell

Literature. Valid from Autumn 2013 Sp 1 (May change until 10 weeks before course start)
Managerial Economics and Business Strategy, Latest edition, Michael R. Baye
Other articles or material can be supplemented during the course.

Course offered by
Department of Business Administration, Technology and Social Sciences

Modules
CodeDescriptionGrade scaleHPStatusFrom periodTitle
0001Written examU G VG *5.00MandatoryA10
0002Group exercise/seminarsU G#1.50MandatoryA10
0004Project workU G#1.00MandatoryA17

Study guidance
Study guidance for the course is to be found in our learning platform Canvas before the course starts. Students applying for single subject courses get more information in the Welcome letter. You will find the learning platform via My LTU.