Graduate Industrial Organization II

The class introduces students to frontier methods in the empirical analysis of market structure and competition. We cover a wide range of methods for the identification of noncompetitive behavior in markets. We study how to estimate demand in markets with differentiated products, with applications to major markets such as the market for automobiles. We cover empirical methods for merger analysis, including merger simulation. In the last part of the class we cover models in which the number and identity of competing firms are endogenously determined. These models allow us to estimate entry costs, and to understand the strategic interaction in an oligopoly market.