We will apply tools from microeconomics and game theory to the analysis of strategic decision making by firms. Specific topics covered include the sources of industry and firm profitability, strategic positioning, sustainable competitive advantage, the boundaries of the firm, incomplete contracts, vertical integration, strategic commitment, dynamic pricing, entry and exit, network effects, and platform markets. My goal in the class is to get students to think like an economist about firm strategy. In 2020-2021, we will pay special attention to competitive strategy issues raised by the coronavirus shock.
The course is designed for students who are very comfortable with microeconomics at the level of 33001. Students may contact the professor if they are unsure whether they have sufficient microeconomics background for the course. Classes will combine case analysis and discussions with lectures. In 2020-2021, in lieu of a midterm, students will perform a detailed case analysis of a firm's response to the coronavirus shock.