MOØ217 Economics of Strategy
Course description for academic year 2020/2021
Contents and structure
Strategic decisions are crucial for the success or failure of any business organization. Many such strategic decisions are directly related to innovation of products, services or organizational structures, and thus important from an innovation management perspective. While business strategies can be viewed from the perspective of multiple disciplines, the objective of this course is to study and analyze strategic decisions from the perspective of microeconomic theory and game theory. The course consists of five parts:
- Introduction to economics of strategy
- Firm boundaries
- Market and competitive analysis
- Competitive strategies
- Performance measurement and incentives
Learning Outcome
Knowledge
On completion of this course a student has advanced knowledge regarding:
- Basic concepts and aspects of economics of strategy
- Economic models and principles relevant for the study of business strategy
- Game theoretic models and principles relevant for the study of business strategy
Skills
On completion of this course a student is able to:
- Analyze factors relevant for determining firm boundaries
- Analyze strategic interactions in price and non-price competition
- Analyze how firms may avoid entry into and promote exit from their markets
- Analyze strategic commitment and other dynamic aspects of competition
- Analyze how to measure performance and provide incentives to perform
Competence
On completion of this course a student is able to:
- Apply economic models
Entry requirements
None
Teaching methods
Lectures. Cases and problem solving.
Compulsory learning activities
1 assessment must be completed.
Assessment
5 hour written exam, A-F scale.
Examination support material
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