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 9:30-10:15

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 Industrial Organization

Required Reading:
NOTE: This is a superset of the required reading, and generally only selected pages of even compulsory papers will be required reading.

[1] Theory of the Firm [2 lectures]
Kaldor, Nicholas, “The Equilibrium of the Firm”. The Economic Journal, Vol. 44, No. 173 (Mar., 1934), pp. 60-76. Selected pages, pages 64-71
Garciano, Luis, , in Robert Gibbons and John Roberts, eds., The Handbook of Organizational Economics, Princeton University Press. Selected Pages: xx-xx.
Coase, Ronald, “The Nature of the Firm”, Economica, 1937. Selected pages: Section1 plus pages 390-392.
Aghion and Holden, “Incomplete Contracts and the Theory of the Firm: What Have Learned over the Past 25 Years?” Journal of Economic Perspectives. Selected Pages: xx-xx.
Teece (review of Chandler), “The Dynamics of Industrial Capitalism”: Scale and Scope, Journal of Economic Literature. Selected Sections: II and VI.A, VI.B and VI.C.
Readings from Church and Ware and other texts? Nelson and Winter?

[2] Entry and Firm Limitations [2 lectures]
*Tirole, Jean, The Theory of Industrial Organization, MIT Press. Selected Pages 389-(very top of) 394. [a lecture]
Henderson, Rebecca, “Underinvestment and Incompetence as Responses to Radical Innovation: Evidence from the Photolithographic Alignment Equipment Industry” RAND Journal of Economics, 1993
*Bresnahan, Timothy, Shane Greenstein, and Rebecca Henderson, “Schumpeterian Competition and Diseconomies of Scope: Illustrations from the Histories of Microsoft and IBM” in Joshua Lerner and Scott Stern, eds., The Rate and Direction of Inventive Activity Revisited, NBER Conference Volume.
*Mary Tripsas and Giovanni Gavetti, “Capabilities, Cognition, and Inertia: Evidence from Digital Imaging”, Strategic Management Journal, 21(No. 10/11), Special Issue: The Evolution of Firm Capabilities (Oct.-Nov. 2000), pp. 1147-1161.
Chaim Fershtman and Ehud Kalai, “Complexity Considerations and Market Behavior”, The RAND Journal of Economics, Vol. 24, No. 2 (Summer, 1993), pp. 224-235

[3] The Diffusion of Strategies [2 lectures]
*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.
*Genesove, David, “History in the Study of Industrial Organization”, mimeo, 2016.
*McKenna, Christopher, “Strategy Followed Structure: Management Consulting and the Creation of a Market for ‘Strategy’, 1950-2000”, History and Strategy, March 2015.
Genesove and Wallace P. Mullin, “The Sugar Institute Learns to Organize Information Exchange,” in Naomi R. Lamoreaux, Daniel M. G. Raff, and Peter Temin, eds., Learning by doing in markets, firms, and countries. Chicago: University of Chicago Press, 1999, pp. 103–38.
Genesove, David and Wallace P. Mullin, “Rule, Communication and Collusion”, The American Economic Review, 91(3).


[4] Life Cycle of Firms and Shakeout [1 lecture]
B. Jovanovic and G. MacDonald, “The Life Cycle of a Competitive Industry”, Journal of Political Economy, (April 1994), 102(2): 322-47. [You may skip the Formal Analysis on pages 331-334, but make sure to continue from “Briefly then, the equilibrium …” on page 34.]

[5] Collusion: Learning from Failures [2 lectures]
Eddy, Arthur Jerome. The new competition. New York: D. Appleton and Co., 1912. – selected pages
*Alexander, Barbara, “Failed Cooperation in Heterogeneous Industries under the National Recovery Administration”, Journal of Economic History, 57, 1998, 322-34.
*Levenstein, Margaret C. “Price Wars and the Stability of Collusion: A Study of the Pre- World War I Bromine Industry.” Journal of Industrial Economics, June 1997, 45(2), pp. 117–37.
Thomas Ulen, Cartels and Regulations, “Cartels and Regulation: Late Nineteenth-Century Railroad Collusion and the Creation of the Interstate Commerce Commission”, The Journal of Economic History, 1980, vol. 40, issue 01, 179-181

[6] History and Narrative [2 lectures]
Vandenbroucke, Jan, “In Defense of Case Reports and Case Series”, Annals of Internal Medicine, 20 February 2001
Evans, David, “In the Defense of History” – selected pages.
Baker and Gil, “Clinical Papers in Organizational Economics”, in Robert Gibbons and John Roberts, eds., The Handbook of Organizational Economics, Princeton University Press

Additional Reading Material:
NONE

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