ØSS117 Market power and strategy

Contents and structure

This course uses microeconomics to address questions related to business strategy.

A common theme in the course is how firms with market power can tailor their prices and products to consumers' preferences. In particular, we will focus on four topics: Monopoly pricing in the short and long run, price discrimination, digital platforms, and bundling.

Learning Outcome

Knowledge

Upon completion of this course, a student has advanced knowledge regarding:

• How firms' pricing strategies depend on consumer preferences, available information about willingness to pay, and the scope for network effects.
• How different pricing strategies affect consumer and total welfare.

Skills

Upon completion of this course, a student is able to:

• Analyze firms' strategic choices using micro-economic principles and theories.
• Identify different pricing strategies, and explain why they are used and what their effects are.

Competence

Upon completion of this course, a student is able to:

• Use microeconomics to analyze real-world questions.

Entry requirements

None

Recommended previous knowledge

Basic courses in mathematics for economists and microeconomics (e.g., BØA111 and BØA203).

Teaching methods

Plenary lectures and work on exercises/problem sets.

Compulsory learning activities

One problem set must be approved before taking the exam.

Assessment

Written exam 5 hours, grading scale A-F, where F is fail.

The exam may be held digitally.

Examination support material

All calculators are allowed, with the following exceptions/limitations

- the calculator can not communicate

- the calculator can not handle symbolic mathmatical expressions

- the calculator will not be connected to electricity

- the calculator can not make noise in the exam fascilities

More about examination support material