Empirical Industrial Organization

Bachelor 2024/2025

Type: Elective course (HSE/NES Programme in Economics)

Area of studies: Economics

Delivered by: Department of Applied Economics

Where: Faculty of Economic Sciences

When: 4 year, 3 module

Mode of studies: offline

Open to: students of one campus

Instructors: Ekaterina Kazakova

Language: English

ECTS credits: 3

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Abstract

This course is designed to introduce students to the basic tools for the empirical analysis of industries and markets. Broadly speaking, empirical industrial organization (EIO) combines empirical methods, data, and models to an alyzeim perfect competition and the organization of markets. Modern method soft the EIO are widely applied in demand forecasting, mergerre view, antitrus tlitigation, marketing, and other related fields. Moreover, the increasing gavailability of firm-and consumer-level data (“big data”) opens new empirical questions, that cannot without understanding the basic softhe EIO analysis. In this course, we will cover traditional empirical IO model srelated to •Demand estimation for homogeneous products; •Discrete demand estimation; •Production function estimation and firm productivity; • Identification of conduct; •Static entry/exit models. The course is associated to exercise sessions devoted to practical applications. We will replicate some of the empirical work horse models using software like R (and, if available, MATLAB).

Learning Objectives

This course is designed to introduce students to the basic tools for the empirical analysis of industries and markets.

Expected Learning Outcomes

Come to the same level of knowledge of the needed econometric tools.
Learning methods to estimate the level of collusiveness on the data
Ability to estimate discrete demand
Ability to estimate production function and productivity
Ability to model market entry games
Deepen knowledge of the previously discussed topics in EIO

Course Contents

Introduction to Empirical Industrial Organization
Competition, collusion and cartel
Estimation of demand for differentiated goods
Estimation of production functions
Estimation of static entry/exit games
Extensions and applications or additional selected topics in EIO

Assessment Elements

Homework 2
Essay
Homework 1
Exam

Interim Assessment

2024/2025 3rd module
0.2 * Essay + 0.3 * Exam + 0.25 * Homework 1 + 0.25 * Homework 2

Bibliography

Recommended Core Bibliography

Belleflamme, P., & Peitz, M. (2010). Industrial Organization : Markets and Strategies. Cambridge, UK: Cambridge eText. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=324082
Bresnahan, T. F., & Reiss, P. C. (1991). Entry and competition in concentrated markets. Journal of Political Economy, 99(5), 977. https://doi.org/10.1086/261786
Industrial organisation : a strategic approach, Church J., Ware R., 2000
Introductory econometrics : a modern approach, Wooldridge, J. M., 2006
Olley, G. S., & Pakes, A. (1996). The Dynamics of Productivity in the Telecommunications Equipment Industry. Econometrica, (6), 1263. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.ecm.emetrp.v64y1996i6p1263.97
Steven T. Berry. (1994). Estimating Discrete-Choice Models of Product Differentiation. RAND Journal of Economics, (2), 242. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.rje.randje.v25y1994isummerp242.262
Timothy F. Bresnahan, & Peter C. Reiss. (1990). Entry in Monopoly Market. Review of Economic Studies, (4), 531. https://doi.org/10.2307/2298085

Recommended Additional Bibliography

Belleflamme,Paul, & Peitz,Martin. (2015). Industrial Organization. Cambridge University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.cup.cbooks.9781107687899
Berry, S., Levinsohn, J., & Pakes, A. (1995). Automobile Prices in Market Equilibrium. Econometrica, (4), 841. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.ecm.emetrp.v63y1995i4p841.90
Industrial organization : markets and strategies, Belleflamme, P., 2010
Industrial organization : markets and strategies, Belleflamme, P., 2016
Reiss, P. C., & Wolak, F. A. (2007). Structural Econometric Modeling: Rationales and Examples from Industrial Organization. Handbook of Econometrics. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.h.eee.ecochp.6a.64

Authors

KAZAKOVA EKATERINA ALEKSANDROVNA

Course Syllabus