This course introduces the basics in economics and strategies and, in particular, proposes an economic approach to strategic questions. It focuses on the main concepts and theories of the field and illustrates them with practical case studies and readings. The course presents different market structures and how they shape and are shaped by firms’ strategies. The focus is mostly on the dynamics of competition and firm interactions. The last section of the course establishes the link between industrial organization and the more recent theories in economics of innovation.

• Awareness of the relations between business strategies and economic approaches to industrial organization and innovation
• Capacity of analyzing and designing business strategies

Main textbooks

• Besanko D., Dranove D., Shanley M. and Schaefer S., Economics of Strategy, 5th edition, Wiley ed. Carlton D.W. and Perloff J.M., Modern Industrial Organization, 4th edition, Pearson ed.

Other references

• Baumol W.J., Panzar J.C., Willig R. (1982), Contestable markets and the theory of industry structure, New-York, Harcourt Brace Jovanovitch ed.
• Fudenberg D., Tirole J. (1991), Game theory, Cambridge, MIT Press.
• Gibbons R. (1992), Game theory for applied economist, Princeton University Press.
• Nelson R.R., Winter S. G. (1982), An Evolutionary Theory of Economic Change, Belknap Press series.
• Scherer F. (1980), Industrial Market Structure and Economic Performance, Boston: Houghton Mifflin ed.
• Schumpeter J. A. (1942), Capitalism, Socialism and Democracy. Stigler G. (1968), The organization of industry, Homewood ed.
• Sutton J. (1991), Sunk costs and market structure, MIT Press.
• Tirole J. (1988), The theory of industrial organization, The MIT Press.
• Williamson O. (1985), The economic institutions of capitalism: Firms, markets, relational contracting, New-York, The free press.