KTTS2120 Strategic Thinking, Competition and Pricing (5 cr)
This course has a heavy focus on industrial organization, i.e. on how firms behave on markets, and on how to regulate so that firms behave on markets in ways we want them to. We will study strategic interactions on a more advanced level, also using game theoretic concepts such as commitment, bluff, and signaling.
On successful completion of the course, the student is able to:
* predict and analyze firm behavior under various market circumstances;
* analyze the effects of antitrust policies and other market regulation;
* analyze the likely effects of recent developments in the above, among others related to digitalization and AI;
* explain concepts such as commitment, bluff, and signaling;
* apply game-theoretic tools related to sequential games, repeated games, and information;
* calculate effects on measures of social welfare of changes in market structure;
Timing: 4th year
KTTA2150 and KTTS2120 are given in sequence during the fall term. Though the timing of the courses will partially overlap, the intention is that a particularly hardworking exchange student could complete both in sequence.
Description of prerequisites
JSBY1230 Talousmatematiikka 2 (Exchange students need to understand how to take derivatives of functions)
KTTA2150 Microeconomics I
Everyone should know how to calculate conditional probabilities.
Exact reading lists are distributed through Moodle each year.
- Paul Belleflamme and Martin Peitz, Industrial Organization: Markets and Strategies, 2nd edition, selected chapters; ISBN: 9781107687899