We are concerned with the strategic behavior of firms under different industry structures as they struggle with the pressures of competition. Students will study how differing levels of the firm's market power impacts pricing and output policies, product differentiation, and barriers to entry. In addition, the student will learn the basics of game theory and use it to analyze the strategic behavior of firms. Topics will include different types of pricing strategies including price discrimination, pricing of product lines, predatory pricing, peak load pricing, and entry deterrence. Issues of non-price competition such as research and development, information, externalities, moral hazard, and firm structure will also be discussed.
Students meet periodically with supervising faculty to review results.