Lecture 28: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 26: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
1. If average cost is decreasing, then it must be the case that
D. Marginal cost is less than average cost
2. Why does the distance between curves II and III get smaller as quantity
increases?
B. Because average fixed cost is declining
3. In a perfectly c
Lecture 8: Price Discrimination
Instructor: Yiyi Zhou
Stony Brook University
ECO 326: Industrial Organization
Price Discrimination
I
Up to now, we assumed that a monopolist produces a single
good and sells it at a uniform price (per unit)
I
Consider cases
ECO 326: Industrial Organization
Department of Economics, Stony Brook University
Semester: Spring 2016
Class Time: Monday and Wednesday 4:00PM 5:20PM
Class Room: Frey Hall 317
Instructor: Yiyi Zhou
Email: [email protected]
Office: N625, Social & Be
Lecture 7: Incumbent Advantage. Entry
Deterrence and Accommodation
Instructor: Yiyi Zhou
Stony Brook University
ECO 326: Industrial Organization
First-Mover Advantage
I
It is often argued that early entrants to a market have an
advantage over later entran
Lecture 9: Product Dierentiation
Instructor: Yiyi Zhou
Eco 326: Industrial Organization
Product Dierentiation
I
In homogeneous goods markets, price competition leads to
perfectly competitive outcome, even with two firms
I
Price competition with dierentiat
Dynamic Games and First and
Second Movers
Chapter 11: Dynamic Games
1
Introduction
In a wide variety of markets firms compete sequentially
one firm makes a move
new product
advertising
second firms sees this move and responds
These are dynamic games
Price-Fixing and
Repeated Games
Chapter 14: Price-fixing and
Repeated Games
1
Collusion and cartels
What is a cartel?
attempt to enforce market discipline and reduce competition
between a group of suppliers
cartel members agree to coordinate their acti
Lecture 24: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 29: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 10: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 18: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 17: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 11: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 15: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 13: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 23: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 27: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 20: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 19: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Lecture 16: Product Differentiation
Instructor: Estefania Vergara-Cobos
ECO-326
Relaxing another assumption: heterogeneous goods Two
main models:
1. Location or spatial-differentiation model (The Hotelling model, The agent-based sugar space model)
Product
Graduate Industrial Organization.
Ariel Pakes
September 2, 2015
I
Introduction.
The course is designed to provide an introduction to the tools needed for
applied analysis of I.O. problems. The focus will be on developing an ability
to analyze issues facin
Answers to Practice Problems for the Final Exam
ECO-326
December 7, 2016
First page:
Empirical demand functions: estimations of the real demand function derived from data.
Sunk costs: a type of fixed costs that is only faced again after a long period of
Lecture 10: Empirical Demand Estimation
Instructor: Estefania Vergara-Cobos
ECO-326
The goal of empirical estimation of consumer behavior is to summarize data and find evidences
consistent with the economic theory. Economists do this in oder to:
1. Infer
Lecture 8: Dynamic Price Competition
Instructor: Estefania Vergara-Cobos
ECO-326
So far we have studied cases in which the firms meet only once. However, in real life firms compete
in more than one period of time. Economists have developed two types of ap
Eco 326 - Industrial Organization
Instructor: Estefania Vergara
Lecture 3
Price Discrimination
A general price creates consumer surplus. However, not all markets charge a same price for all consumers.
Eg. of general pricing: retailers.
Eg. of price differ