HU Credits: 1

Degree/Cycle: 2nd degree (Master)

Responsible Department: economics

Semester: 1st Semester

Teaching Languages: Hebrew

Campus: Mt. Scopus

Course/Module Coordinator: Professor David Genesove

Coordinator Email: david.genesove@mail.huji.ac.il

Coordinator Office Hours: W 9:30-10:30

Teaching Staff:
Prof David Genesove

Course/Module description:
The course deals with a number of themes in Industrial Organization not covered in Industrial Organization I and II: Firm Growth Industry Life Cycles, theory of the firm and historical approaches to IO.

Course/Module aims:
For the students to be able to articulate the main themes and analyze markets.

Learning outcomes - On successful completion of this module, students should be able to:
Articulate the main themes and analyze markets.

Attendance requirements(%):
50

Teaching arrangement and method of instruction: Lecture

Course/Module Content:
Life Cycle of Industries
Historical Approaches to IO

Required Reading:
THE FOLLOWING IS A PARTIAL LIST:

1. Firm Growth and Turnover
(a) Industry Life Cycle
S. Klepper and E. Graddy, “The Evolution of New Industries and the Determinants of Market Structure,” Rand Journal of Eco., vol. 21 (Spring 1990), 27-44.

B. Jovanovic and G. MacDonald, “The Life Cycle of a Competitive Industry”, Journal of Political Economy. April 1994; 102(2): 322-47

S. Klepper and K. Simons, “The Making of an Oligopoly: Firm Survival and Technological Change in the Evolution of the U.S. Tire Industry”, Journal of Political Economy, August 2000; 108(4): 728-60.

(b) The Value of New Goods
T. F. Bresnahan and R. J. Gordon, “Introduction” in Bresnahan and Gordon, eds., The Economics of New Goods, The University of Chicago Press, 1997.

(c) Firm Growth and Exit
B. Jovanovic, "Selection and the Evolution of Industry," Econometrica, (May 1982), 649-70.

T. Dunne, M. Roberts and L. Samuelson, “The Growth and Failure of U.S. Manufacturing Plants”, Quarterly Journal of Economics,. November 1989; 104(4): 671-98

Alexander, Barbara, “Failed Cooperation in Heterogeneous Industries under the National Recovery Administration”, Journal of Economic History, 57, 1998, 322-34.
Baker and Gil, “Clinical Studies in Organizational Economics” in Gibbons and Roberts, eds., Handbook of Organizational Economics, 2013.
Bakker, “The decline and fall of the European film industry: sunk costs, market size, and market structure: 1890-1927”, Economic History Review, LVIII 2005 2, 310-351.
Boeker, Warren, Executive Migration and Strategic Change: The Effect of Top Manager Movement on Product Market Entry, Administrative Science Quarterly, 42(2): June 1997, 213-236.
Eichengreen, Barry, “Economic History and Economic Policy”, The Journal of Economic History, June 2012, 72(2):289-307.
Fisher, Frank, “Games Economists Play: A Non-cooperative view”, RAND Journal of Economics, 199, 20(1):113-124.
Fisher, Frank, “Organizing Industrial Organization: Reflections on the Handbook of Industrial Organization”, Brookings Papers on Economic Activity. Microeconomics, Vol. 1991 (1991), pp. 201-240.
Genesove, “The Dye Famine and Its Aftermath: Knowledge Diffusion and Entry”, CEPR Discussion Paper, 2006, 5890.
------ “The Sugar Institute Learns to Organize Information Exchange” in N. Lamoreaux, D. Raff and P. Temin, Learning by Doing in Markets, Firms and Countries, The University of Chicago Press.
------ “Rules, Communication and Collusion: Narrative Evidence from the Sugar Institute Case”, The American Economic Review, 91(3): 2001, 379-298.
------ “Predation and Its Internal Rate of Return: The Sugar Industry, 1887-1914”, Rand Journal of Economics, 6(2), 2006, 17 (1-Spring), 47-69.
Ghemawat, Pankaj, “Competition and Business Strategy in Historical Perspective”, The Business History Review, 2002, 76(1): 37-74.
Harrington, Joseph E. III, How do Cartels Operate? Foundations and Trends in Microeconomics, 2(1):1-105, 2006.
Henderson, Bruce, Henderson on Strategy (?), 1980.
Jovanovic, Boyan, and Peter L. Rousseau. 2002. "The Q-Theory of Mergers", American Economic Review, 92(2): 198-204.
Kaplow, Louis, Competition Policy and Price Fixing, Princeton University Press, 2013.
Levenstein, Margaret, “Price Wars and the Stability of Collusion: A Study of the Pre-World War I Bromine Industry”, Journal of Industrial Economics, 45(2):117-137.
Levenstein, Margaret, “Do Price Wars Facilitate Collusion? A Study of the Bromine Cartel Before World War I”, Explorations in Economic History, 33(1):107-137.
Levenstein, Margaret, “Mass Production Conquers the Pool: Firm Organization and the Nature of Competition in the Nineteenth Century” Journal of Economic History, 55(3):575-611, 1995.
Newbery, David M., Privatization, Restructuring, and Regulation of Network Utilities, MIT Press.
Nicholas, Stephen, “The New Business History” in Donald Graeme Snooks, editor, Historical Analysis in Economics, Taylor and Francis Group, 1993.
Shapiro, Carl, “The Theory of Business Strategy”, RAND Journal of Eco., 1989, 20(1):125-137.

Additional Reading Material:
Chandler, Jr., Alfred D., Strategy and Structure, 1964.
-----, Scale and Scope, .
Eddy, Arthur Jerome, The New Competition, New York, D. Appleton and Co., 1912.
Keichel, The Lords of Strategy: The Secret Intellectual History of the New Corporate World, 2010.

Course/Module evaluation:
End of year written/oral examination 0 %
Presentation 0 %
Participation in Tutorials 0 %
Project work 0 %
Assignments 100 %
Reports 0 %
Research project 0 %
Quizzes 0 %
Other 0 %

Additional information:
None