About this Course
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English

Subtitles: English

100% online

Start instantly and learn at your own schedule.

Flexible deadlines

Reset deadlines in accordance to your schedule.

English

Subtitles: English

Syllabus - What you will learn from this course

Week
1
2 hours to complete

The firm

Our first lecture is devoted to building a microeconomic foundation, which is necessary for understanding the lectures to come. In the beginning segment we will say a few words about the course and, then, we will focus on the concept of the firm. We will try to define what a firm actually is and why business is organized based on the notion of the firm. We will talk about technology, economies of scale, concentration, informational asymmetries, hold-up and we will present our first case study: GM vs. Fisher Body. It may seem to you that you have heard some of this lecture’s terms before, or you already know them, but reviewing them and deeply understanding them will be essential for the continuation of the course.

...
10 videos (Total 83 min), 2 readings, 1 quiz
10 videos
1. Tour of the course4m
2. What is a firm?7m
3. The technological view12m
4. Economies and concentration6m
5. Incomplete contract9m
6. Informational asymmetries10m
7. Long-run relationship8m
8. Vertical relationship model11m
9. Case: GM vs. Fisher Body9m
2 readings
Welcome note2m
Readings & Links2m
1 practice exercise
The firm1h
Week
2
3 hours to complete

Game theory foundations

In this lecture we will focus on the principles of strategic interaction. The most important tool to understand strategy is game theory. We will define and explain different categories of games. The ultimate goal of this lecture is to enable you to use game theory so that you can model interaction and negotiations. We will talk about equilibrium in dominant strategies, which is a non-strategic equilibrium, the Nash equilibrium and the prisoner’s dilemma. We will get acquainted with static, repeated and dynamic games. I will tell you a real story of prisoner’s dilemma and we will have an extended example on firm interaction with “Energon vs. Orange”.

...
10 videos (Total 98 min), 1 reading, 1 quiz
10 videos
2. The bi-matrix and strict dominance10m
3. Dominant Equilibrium6m
4. Nash Equilibrium13m
5. Interesting cases of NE8m
6. The prisoner’s dilemma5m
7. Case: The cheater’s dilemma10m
8. Repeated games10m
9. Dynamic games8m
10. Example: Energon vs. Orange13m
1 reading
Readings & Links2m
1 practice exercise
Game theory foundations1h
Week
3
3 hours to complete

Static competition

The topic of this lecture is short-run competition. That is, interaction that lasts only for one period. Static competition is not the most usual form of competition but it is not rare, either. Most of the principles that we will present in this lecture will carry over to the dynamic competition analysis later. There are two different kinds of static competition. The first is when strategic variables have a positive causative relationship, as in competition with prices. The second is when the strategic variables are negatively related, as in competition with quantities. We will cover interesting notions such as first-mover advantage, the Bertrand Paradox, capacity constraints, differentiated products, and will introduce the notion of collusion that will be of major importance for our future lectures.

...
10 videos (Total 95 min), 1 reading, 1 quiz
10 videos
2. Competition in quantities12m
3. Application: Linear demand – constant cost11m
4. First mover advantage12m
5. Competition in prices9m
6. The Bertrand Paradox5m
7. Capacity constraints8m
8. Differentiated products9m
9. Application: Differentiated products6m
10. The prospect of collusion10m
1 reading
Readings & Links2m
1 practice exercise
Static competition1h
Week
4
3 hours to complete

Dynamic competition

We extend the analysis of competition introducing interactions with time depth. We will use several concepts from the previous lectures but here we have two important qualitative differences. When competition lasts for more than one period, players develop reputations and are given the opportunity to retaliate in case they are cheated upon. Reputation and retaliation may alter the outcome of interaction in comparison to interactions that last only for one period. We will talk about repetitive and dynamic interactions, collusion, renegotiation, price wars, antitrust and detection mechanisms.

...
10 videos (Total 100 min), 1 reading, 1 quiz
10 videos
2. Infinite horizon12m
3. Renegotiation9m
4. Price wars14m
5. Establishing collusion14m
6. Complications: asymmetries and heterogeneity7m
7. Complications: volatility and structure8m
8. Antitrust9m
9. Prosecution is not straightforward8m
10. Detection6m
1 reading
Readings & Links2m
1 practice exercise
Dynamic competition1h

Instructor

Avatar

Kosmas Marinakis

Assistant Professor
ICEF and Faculty of Economics Sciences, HSE

About National Research University Higher School of Economics

National Research University - Higher School of Economics (HSE) is one of the top research universities in Russia. Established in 1992 to promote new research and teaching in economics and related disciplines, it now offers programs at all levels of university education across an extraordinary range of fields of study including business, sociology, cultural studies, philosophy, political science, international relations, law, Asian studies, media and communicamathematics, engineering, and more. Learn more on www.hse.ru...

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