To provide insight into modern idustrial organization theory in order to enable the students to analyse strategic interactions among firms operating in makets with less than perfect competition.
The course provides an introduction to basic (non-cooperative) game theory, which is applied to the study of strategic interaction among firms operating in imperfectly competitive markets. Topics:
- Basic non-cooperative game theory
- Tactical decisions regardin what and how much to supply
- Tactical decisions regarding what price to charge, including tacit collusion
- Strategic decisions in order to avoid or limit competition
For more information, please see study guide.