Industrial Organization I
Fall 2001 GMU Syllabus

Economics 844, meets 7:20-10:00pm, Monday, during Fall 2001, in room Krug Hall (KH) 210.

Instructor: Robin D. Hanson, Asst. Professor, Economics (,
Office Hours: Officially Monday 2:30-4. But I'm usually in at Carow Hall 10b. 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)
Carl Shapiro, Hal R. Varian, Information Rules: A Strategic Guide to the Network Economy, Harvard Business School Press, ISBN: 087584863X, 1998.
F.M. Scherer, Industry, Structure, Strategy, and Public Policy, Harper Collins, ISBN 0-673-99289-6, 1996.
Optional Texts:
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
WeekShy Ch.I.R. Ch.Topics
27 Aug 2,3 1 Game Theory, Micro Review, Info Economy
3 Sep No Class
10 Sep 4,5 Perfect Competition, Monopoly, Private Law
17 Sep 6 Markets for Homogeneous Products
24 Sep 7 2 Markets for Differentiated Products, Pricing Info
1 Oct 5,6 Lock-In
10 Oct 16 Price Dispersion and Search Theory
15 Oct Midterm
22 Oct Student Paper Presentations
29 Oct Student Paper Presentations
5 Nov No Class
12 Nov 8 Concentration, Mergers, and Entry Barriers
19 Nov 10 7,8 Networks, Compatibility and Standards
26 Nov 12 Quality, Durability, and Warranties
3 Dec 14 Marketing Tactics, Papers Due Dec 14
17 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