ProgramofaLectureCoursein.docVIP

Program of a Lecture Course “The Theory of Industrial Organization-I” Oleg Eismont The course analyzes the problems of the real economy that cannot be described within the framework of a classical economic theory that is taught by traditional micro- and macroeconomics. The students are presumed to be familiar with the standard courses in micro- and macroeconomics at the graduate level. The lecture course corresponds to a master’s level. As the basic materials for studies, textbooks and papers in periodicals and monographs are used. The course includes 14 lectures, 6 seminars midterm and final exams. The final grade is the weighted average of the grades at the midterm (30%) and final (70%) exams. Consumer Surplus and Public Welfare (1 lecture). Estimation of public welfare within the framework of partial equilibrium analysis. Quasilinear utility function and measure of public welfare. Compensated and equivalent variations. Public welfare and Hicksian and Marshallian demand functions. Consumer surplus as an approximate measure of public welfare. Tirole J., 1988, The Theory of Industrial Organization, The MIT Press. Varian H., 1992, Microeconomic Analysis, W.W. Norton Company. Willig R., 1976, Consumer’s Surplus Without Apology, American Economic Review, vol. 66, 589-597. Economic Theory of Bundling (1 lecture). Bundling as a marketing tactics. Price discrimination and bundling. Heterogeneous consumers. Pure components strategy, pure bundling strategy, and mixed bundling strategy. Superiority of mixed bundling relative to pure bundling. Conditions for mixed bundling strategy to be dominant over pure components strategy. Independent distribution of reservation prices. Homogeneous consumers. Commodity bundling and consumer surplus. Adams W.J., and J.L. Yellen, 1976, “Commodity Bundling and the Burden of Monopoly”, Quarterly Journal of Economics, vol. XC, 475-498. McAfee R.P., J. McMilan, M.D. Whinston, 1989, “Multiproduct Monopoly, Commodity Bundling, and Correlatio