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F09topicsreadingsweeks4and5 - Th October 1 Tu October 6...

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Econ 467: Topics/Readings Sept 24-October 6, Important Dates Th. September 24- Tu September 29 Cournot example (2 identical firms, p=100-q, marginal costs=10): reaction functions/ Isoprofit Diagrams. http://www.ssc.wisc.edu/~munia/467/cournotisoprofitreactionfunctions.pdf Cournot (NE quantities): homogenous product, N identical Firms Bertrand (NE prices): homogenous products Differentiated products: NE prices, Sequential Equilibrium in prices, comparison with NE and Sequential Equilibrium in quantities (section) Optimal Export Subsidy (firms choose quantities, only one country can use an export subsidy) Readings: Carlton and Perloff: Ch. 6 (e-reserves). Classic Models of Oligopoly: Ch. 8 ,Church, J and Ware, R: Industrial Organization: http://homepages.ucalgary.ca/~jrchurch/page4/page5/files/PostedIOSA.pdf Carlton and Perloff: Ch. 18 (pages 590-600) (e-reserves).
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Unformatted text preview: Th. October 1- Tu October 6 Optimal export subsidies when both governments can subsidize Remarks on the assumptions and results. Boeing-Airbus case, issues Readings: Collision Course in Comercial Aircraft: Boeing-Airbus-McDonnell Douglass HBS 9-391-106. Airbus vs Boeing Revisited: International Competition in the Aircraft Market, @ by D. Irwin and N. Pavnik, NBER Working Paper 8648, December 2001 (selected pages) (e-reserves) Civil Aircraft Power from European Commission (web page). Other materials used in class (NYTimes Sep 2 2009) Important dates: Th Oct 1: Homework 2 due Tu October 6: Questions on Boeing-Airbus due (to be posted by Mon Sept 28) Exam 1 review: to be scheduled (Monday Oct 5 or Tu Oct.6 in the evening) Th October 8: Exam 1 (room to be announced)...
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