Fall 2013
Topic 4a : Horizontal Mergers
Outline
Mergers in Differentiated oligopoly
Mergers in Cournot oligopoly
Mergers in Stackelberg markets
Mergers in successive oligopoly with linear pricing
Readings
ch. 11
EC620
Horizontal Mergers
1 of 18
Fall 2013
Fall 2013
Topic 2: Price discrimination
Outline
Third degree price discrimination
Two-part tariffs and tying
Versioning
Bundling
Reading
ch. 5, 6
BU620
Topic 2: Price discrimination
1 of 13
Fall 2013
Price discrimination is
the practice of charging buyers
Assignment 2 Answers
Question 1 : Edgeworth model (30 marks)
a) ki 10 (10 marks) e.g. k1 = k2 = 8
Find monopoly quantity for firm i
MR = MC36 2qi = 6qi = 15 = qMi, i = 1,2.
Since ki < 15 then qMi > ki and is thus qMi not possible.
The constrained monop
Fall 2013
Economics 620 Microeconomics I
Instructor: Dr. Steffen Ziss, P3084, tel: 884-0710 ext. 2776, email: sziss@wlu.ca
Office hours: Tuesdays and Thursdays 11:30am -1:00pm.
Classes: Classes are held in P3027 on Tuesdays and Thursdays 2:30-3:50 pm.
Cou
Fall 2013
Topic 1: Basic Microeconomics
Outline
Profit maximization, elasticity and the Lerner index
Efficiency, welfare and deadweight loss
Monopoly
Durable goods monopoly
Perfect competition
Reading
ch.2
EC620
Topic 1: Perfect competition, monopoly & we
Fall 2013
Topic 5: Research and Development
Two-stage game
R and D
Product and process innovation
EC620
Topic 5: R and D
1 of 8
Fall 2013
Two-stage games
Stage 1: Choose xi = qi or pi taking ki as given
Stage 2: Choose ki to maximize i
Look for sub-game p
Fall 2013
Potential exam questions for EC620 Mid-term exam
Format : Required question in Part A. Do 4 out of 6 questions in Part B. Questions that
dont appear on the mid-term will be potential exam questions for the final exam.
Questions will appear exact
Fall 2013
Potential exam questions for EC620 Final exam
Format : Required question in Part A. Do 4 out of 6 questions in Part B. Questions that
dont appear on the mid-term will be potential exam questions for the final exam.
Questions will appear exactly