Institute: Vállalkozásmenedzsment Intézet (1084 Budapest, Tavaszmezõ u. 15-17.) Credit: 2
Type of classes: Nappali Language: angol Semester: 2007/08/1
 
Level: Mûszaki menedzser szak;
 
Responsible Teacher: Dr. Kóczy Á. László Teacher(s): Dr. Kóczy Á. László;
 
Pre requirements: GVMKG112NK
Consultations (total/week): Heti Lectures: 2 Practice lectures: 0 Labs: 0 Consultations: 0
 
Type of Exam: vizsga
 
Aim of the subject: The aim of this course is to learn to understand market competition, the development of markets and the decisions of the market players. We introduce and explain the elementary models of industrial organization, study the firms’ strategic interaction, such as price competition, product differentiation, price discrimination, advertising, research and development, market entry and exit.
 
Week of
semester
Topics of lectures/practices
1. Introduction: What is industrial organization? A recap of basic microeconomics.
2. The firm. A brief introduction to games and stratiegies.
3. Monopoly and regulation.
4. Perfect (or almost perfect) competition.
5. Oligopolistic competition
6. Collusion
7. Market structure and market power
8. Price discrimination
9. Product differentiation
10. Advertising
11. Entry costs, market structure and welfare
12. Strategic behaviour, entry and exit
13. Research and development
14. Networks and standards
Type of evaluation,
repetition, calculation
of grade, etc.
Open book, written exam.
The exam contains 3 exercises of equal weight where the student is expected to demonstrate the understanding of the concepts of the course as well as to apply this understanding to analytical problems similar to those in the textbook. The exam is in English, but the quality of English in the solutions has little influence on the grades.
Students have the possibility to replace one of their exam questions by an essay of no more than 8 pages on a pre-approved IO topic. The essay can be written by a group of (max 3) students who will receive the same grade for the essay. The essay must be handed in before 10 am on the last Friday of the teaching period both electronically and in print. The student then indicates in the exam which question is to be replaced.
The written exam is evaluated as follows:
0-54%: fail (1)
55%-64%: pass (2)
65%-74%: good (3)
75%-84%: very good (4)
85%-100%: excellent (5)
Once the grades are available an inspection hour will be organised.

Resits: In line with faculty regulations, after due fees paid, resit at the time organised by the course coordinator. The form of the exam depends on the number of students taking it: normally oral, for a large number of students, possibly written.
 
Compulsory literature: Luís M. Cabral: Introduction to Industrial Organization, The MIT Press, Cambridge Massachusetts, 2000.
Suggested literature: Stephen Martin: Industrial Organization: A European perspective, Oxford University Press, Oxford, 2001.