316-210 Competition and Strategy

316-202 Intermediate Microeconomics.

The subject introduces students to the rapidly growing literature in economics and business on strategic interaction with an emphasis on applications to business and public policy. It will provide students with the basic tools to be able to read the literature on real world situations. Topics covered include game theory; decision making under uncertainty; the prisoners' dilemma; dynamic strategy and strategic positioning; credible commitments and deterring competitors; cooperation and coordination; brinkmanship and industry shakeouts; strategic negotiation; horizontal and vertical integration; tacit collusion; sustaining collusion and collusive devices; uncertainty; and reputation as a competitive advantage. The subject will emphasise applications.

A 2-hour end-of-semester examination (60%), a mid-semester test (10%) and assignments totalling not more than 3000 words (30%).