This course aims at equipping students to understand complex strategies that firms apply to maximize their profits. Emphasis is given to pricing, advertising and innovation strategies of firms in a static and/or a dynamic perspectives. The range of strategies analyzed is wide because firms operate in diverse market organizations (various competitive environments, direct sales vs indirect sales to consumers) and demand conditions (uncertainty, consumers’ heterogeneity, imperfect information of consumers about prices and products).
The methodology used is Microeconomic Theory and Industrial Organization.
Each class (3 h) will contain a case study (0,5 h), theory (1,5 h) and exercises (1 h) .
Themes of Classes
Multiproduct firms’ pricing
- Case Bundling and the Google case
- Case Informative advertising : Measuring the effectiveness of an online campaign advertising with experimental data.
Entry deterrence and entrants’ strategies
- Case Short stories to illustrate Judo Economics.
- Case Recognizing lock-in: How to leverage switching costs ?
Vertical Contracts and Vertical Integration
- Case Slotting Allowances: Sorrell Ridge
Vertical Relationships and Bargaining
Innovation and R&D
- Case Open source and Innovation