Institute: Vállalkozásmenedzsment Intézet (1084 Budapest, Tavaszmezõ u. 15-17.) Credit: 3
Type of classes: Nappali Language: angol Semester: 2013/14/2
 
Level: ERASMUS; Gazdálkodási és menedzsment BSc alapszak; Kereskedelmi és marketing BSc alapszak; Műszaki menedzser BSc alapszak;
 
Responsible Teacher: Dr. Kóczy Á. László Teacher(s): Dr. Kóczy Á. László;
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.
Requirements during the semester
(homeworks, essays,
excercises, teamworks,
presentations,
part and final
oral/written exam etc.):
Compulsory class attendance.
4 short tests in weeks 4, 7, 10, and 14. On week 15 a combined test can be taken.

1. Participation in classes
2. 50% or higher result in the tests.
 
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. ZH1 Perfect (or almost perfect) competition.
5. Oligopolistic competition
6. Collusion
7. ZH2 Market structure and market power
8. Price discrimination
9. Product differentiation
10. ZH3 Advertising
11. Entry costs, market structure and welfare
12. Strategic behaviour, entry and exit
13. Research and development
14. ZH4 Networks and standards
 
Type of evaluation,
repetition, calculation
of grade, etc.
The written exam is evaluated as follows:
0-49%: fail (1)
50%-62%: pass (2)
63%-74%: good (3)
75%-84%: very good (4)
85%-100%: excellent (5)
Once the grades are available an inspection hour will be organised.

In the combined test on week 15 there is the last possibility to get the grade
In the combined test on week 15.
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.
 
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.