Econ 8601-Industrial Organization
Dept. of Economics
University of Minnesota
Fall 2016
Thomas J. Holmes
4-135 Hanson
Hall
612-625-4512
holmes@umn.edu
Course home page: http://www.econ.umn.edu/~holmes/class/2016f8601/index.html
Description: Econ 8601 is the
first course in the industrial organization field sequence. The course
requirements include a final exam and several homework sets.
Lecture and Reading Schedule
Topic 1: Dynamic
Oligopoly,
Background References
Aguirregabiria, Victor, and Aviv Nevo
“Recent
Developments in Empirical IO: Dynamic Demand and Dynamic Games,” with Aviv Nevo. Advances in Economics and Econometrics: Theory and
Applications. Tenth World Congress of the Econometric Society
Arcidiacono, Bayer, Blevins, and Ellickson, “Estimation of Dynamic
Discrete Choice Models in Continuous Time with an Application to Retail
Competition, forthcoming ReStud
Bajari, Patrick, C. Lanier Benkard and Jonathan Levin, “Estimating Dynamic Models of
Imperfect Competition,” Econometrica Vol. 75, No.
5 (Sep., 2007) (pp. 1331-1370)
Doraszelski, Ulrich and Ariel Pakes, A Framework for Applied Dynamic Analysis in IO,", Mark Armstrong and Robert Porter (eds.), Handbook of Industrial Organization, Volume 3, Chapter 30, Pages 1887-1966 (2007).
Maskin, Eric and Jean Tirole (1988), “A Theory of Dynamic Oligopoly I: Overview and Quantity Competition'' and “A Theory of Dynamic Oligopoly II: Price Competition, Kinked Demand Curves, and Edgeworth Cycles,'' Econometrica 56, 549-599.
Gowrisankaran G. and T. Holmes, “Mergers and the
Evolution of Industry Concentration: Results from the Dominant Firm Model,” Rand,
Autumn, 2004. Link (Note, while I don’t
discuss the merger analysis in this paper, the special case of the model of this
paper with no mergers is a close cousin to the model discussed in class.)
Guerre,
Emmanuel, Perrigne Isabelle, and Vuong
Quang.
"Optimal
Nonparametric Estimation of First-Price Auctions." Econometrica 68, no. 3 (2000): 525-74.
Recommended: Work
through notes on single-agent
dynamic models (and part 2)
of Matt Shum’s (CalTech) course “Empirical
Methods for Industrial Organization”
Topic 2: Product
Differentiation, Price Competition, Efficiency of Entry
Anderson, Simon P, André De Palma, and Jacques-François Thisse, “Demand
for Differentiated Products, Discrete Choice Models, and the Characteristics
Approach,” Review of Economic Studies
(1989) 56 (1): 21-35
Simon P. Anderson and Andre de Palma, “The Logit as Model of
Product Differentiation,” Oxford
Economic Papers, New Series, Vol. 44, No. 1 (Jan., 1992), pp. 51-67
Broda, C. and D. Weinstein, "Globalization and the Gains from
Variety,"
Quarterly Journal of Economics Volume 121, Issue 2 - May 2006
Feenstra, Robert C and David E. Weinstein, “GLOBALIZATION,
MARKUPS AND U.S. WELFARE,” NBER Working Paper 15749
Caplin, A., & Nalebuff, B. (1991). Aggregation and Imperfect
Competition: On the Existence of Equilibrium. Econometrica,
59(1), 25-59.
Gowrisankaran, Gautam, Aviv Nevo
and Robert Town. 2015. "Mergers When
Prices Are Negotiated: Evidence from the Hospital Industry." American
Economic Review, 105(1): 172-203
Mankiw,
N. Gregory; Michael D. Whinston, “Free Entry and
Social Inefficiency,” The RAND Journal of
Economics, Vol. 17, No. 1.
(Spring, 1986), pp. 48-58. Link
Topic 3: Size
Distribution of Firms
Lucas, Robert “On the Size Distribution of Business Firms,” Bell Journal, 1978, 508-523
Hopenhayn, Hugo, “Entry, Exit, and firm Dynamics in Long Run Equilibrium,” Econometrica Vol. 60, No. 5 (Sep., 1992), pp. 1127-1150
Eaton and Kortum, “Technology, Geography, and Trade, Econometrica, 70(5), 2002, 1741-1779. Link
Andrew B. Bernard; Jonathan Eaton; J. Bradford Jensen; Samuel Kortum, “Plants and Productivity in International Trade The American Economic Review, Vol. 93, No. 4. (Nov., 2003), pp. 1268-1290. Link
Holmes, T. J. and J. J. Stevens, "An Alternative
Theory of the Plant Size Distribution, with Geography and Intra- and
International Trade,” with John Stevens,
Journal of Political Economy, Vol. 122, No. 2 (April 2014), pp. 369-421
(see also Autor,
Dorn, Hanson (AER 2013) and Pierce and
Schott (AER 2016)
Ryan Decker, John Haltiwanger, Ron S Jarmin, and Javier Miranda, “The Secular Decline
in Business Dynamism in the U.S., 2014 working paper.“
DeLoecker, Goldberg, Khandelwal and N. Pavcnik,
Prices,
Markups, and Trade Reforms, Econometrica
Topic 4:
Productivity, Scale Economies
Ahlfedlt, Gabriel, Steven Redding, Daniel
Sturm and Nikolaus Wolf,” The Economics of Density: Evidence from
the Berlin Wall ,” Econometrica, 83(6), 2015,
2127-2189
Fajgelbaum, Pablo D., Eduardo Morales, Juan
Carlos Suárez Serrato, and Owen Zidar,
“State Taxes and Spatial Misallocation: March 2016.
Arkolakis and Allen, Trade and the Topography
of the Spatial Economy, Quarterly Journal of Economics, 2014
Recommended
reference for those with an interest in urban and regional economics:
Handbook of Regional and Urban Economics,
Volume 5, Pages 1-1653 (2015),Handbook of Regional and Urban Economics,Edited by Gilles Duranton,
J. Vernon Henderson and William C. Strange
Topic 5: Theory of the Firm
Scientific
Background on the Sveriges Riksbank
Prize in Economic Sciences in Memory of Alfred Nobel 2016, OLIVER HART AND
BENGT HOLMSTRÖM: CONTRACT THEORY
Acemoglu, D., Griffith, R., Aghion, P. and Zilibotti, F.
(2010), VERTICAL INTEGRATION AND TECHNOLOGY: THEORY AND EVIDENCE. Journal of
the European Economic Association, 8: 989–1033.
doi:10.1111/j.1542-4774.2010.tb00546
Holmstrom, B.R. and P. Milgrom,
"The Firm as an Incentive Device," American Economic Review, Sept.
1994. Link
Topic 6: Price Discrimination
Nevo, A., Turner, J. L. and Williams, J.
W. (2016), Usage-Based
Pricing and Demand for Residential Broadband. Econometrica,
84: 411–443. doi:10.3982/ECTA11927