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 to give students a set of economic tools, and develop a rigorous evaluation of firm strategy.
The course is designed for students who are very comfortable with microeconomics at the level of 33001. Classes will combine case analysis and discussions with lectures.