In reality, free markets characterized by fierce competition and free market entry are the exception rather than the rule. Firms pursue a variety of competitive strategies to achieve dominance and maintain market power. This course uses case studies and industrial economic models to provide a broader, more realistic picture of firm behavior in real markets and to understand the variety of competitive strategies pursued by, for example, Internet companies, electronics firms, pharmaceutical companies, and automobile manufacturers. At the same time, this course examines how antitrust authorities can identify and prevent anticompetitive behavior by firms. Two main questions explored in this course are: How do firms acquire, use, and maintain market power? How can antitrust authorities deal with anticompetitive activities by firms that restrict competition at the expense of consumers and/or competitors?
This course addresses competitive strategies of firms in imperfectly competitive markets and the resulting market dynamics. Considered are advanced pricing strategies of firms, strategic interaction of firms in oligopoly markets, market entry, endogenous determinants of industry structure, and strategies of firms with respect to decisions such as product differentiation, vertical integration, advertising, and innovation.