Industrial Organization I
Fall 1999 GMU Syllabus

Economics 844, meets 7:20-10:00pm, Tuesday, during Fall 1999, in room East 122.

Instructor: Robin D. Hanson, Asst. Professor, Economics (,
Office Hours: I'm usually in at 10b Carow Hall. 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.
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, Second Edition, Addison-Wesley, ISBN 0-673-46902-6, 1994.
Assignments: Deadlines: Grade Weights: You may choose one of these two ways to weight the assignments:
  1. Participate 5%, Review 15%, Exam 30%, Paper 50%.
  2. Participate 5%, Review 15%, Exam 80%. (Here, exams are held to a higher standard.)
Mailing List: To join the class mailing list, John Smith would send a message to saying (in the message body)
subscribe ECON844 John Smith
Lecture Schedule
31 Aug Chapters 2,3 Game Theory, Micro Review
7 Sep Chapters 4,5 Perfect Competition, Monopoly
14 Sep Chapter 6 Markets for Homogeneous Products
21 Sep Chapter 7 Markets for Differentiated Products
28 Sep Chapter 8 Concentration, Mergers, and Entry Barriers
5 Oct Chapter 9 Research and Development
12 Oct Holiday
19 Oct Chapter 10 Economics of Compatibility and Standards
26 Oct Chapter 11 Advertising
2 Nov Chapter 12 Quality, Durability, and Warranties
9 Nov Chapter 13 Pricing Tactics: Two-Part Tariff and Peak-Load Pricing
16 Nov Chapter 14 Marketing Tactics: Bundling, Upgrading, and Dealerships
23 Nov Chapter 15 Management, Compensation, and Regulation
30 Nov Chapter 16 Price Dispersion and Search Theory
7 Dec Slack/Review
14 Dec Final Exam
Articles Quoted in the first lecture:
Sam Peltzman, Review of The Handbook of Industrial Organization, The Journal of Political Economy, Vol. 99, No. 1. (Feb., 1991), pp. 201-217.
The final exam.