Competitive Strategy: an analytical approach
Objectives
The course aims at offering an analytical approach to market competition. Analytical means that the course will be anchored on microeconomic reasoning, which provides a framework that proves very useful to organize one’s thoughts about how firms compete. However, little previous knowledge of microeconomics or math is required. All that is needed is a preference for logical reasoning, graphical analysis (often used) and, here and there, (very simple) calculus explained in intuitive terms. Note that the course’s aim is not to teach microeconomics—you can learn it elsewhere—but to take advantage of the discipline that microeconomics brings to one’s reasoning about how firms compete and markets operate.
General characterization
Code
2297
Credits
7
Responsible teacher
Vasco Santos
Hours
Weekly - Available soon
Total - Available soon
Teaching language
English
Prerequisites
Available soon
Bibliography
Besank, David, David Dranove, Mark Shanley, and Scott Schaefer, 2010, The Economics of Stategy, sixth edition, New Jersey, USA: John Wiley and Sons.
Teaching method
The student will be exposed to formal lectures where the concepts will be presented and discussed. Then, it should read the relevant chapters of the assigned textbook. After that, she or he will be required to solve problem sets (either 3 or 4) that exemplify the use of the concepts previously learned, and case studies (2) that illustrate their practical application.
Evaluation method
Problem sets (20%), case studies (20%), midterm (25%), final exam (35%).
Subject matter
Economics of scale and scope, agency and coordination, competitors and competition, strategic commitment, dynamics of pricing rivalry, entry and exit, industry analysis, strategic positioning for competitive advantage.
Programs
Programs where the course is taught: