BE 511: Business Economics II

Building on BE 510 Business Economics I, this module will provide an introduction to economic models of strategic decision-making and behavior of firms in the context of oligopolistic competition. Topics will include output and pricing strategies, the economics of collusion, market structure, market entry decisions and product differentiation. Some of these topics require a degree of analytical rigor and we will make use of some game-theoretical and mathematical methods.

Learning outcomes
By the end of the module students will have

  • the ability to apply economic reasoning in the context of oligopolistic competition,
  • an understanding of model-based analytical methods and arguments,
  • and familiarity with basic game-theoretic models of industrial organization.

Necessary prerequisites

Recommended prerequisites
Knowledge of introductory microeconomics at bachelor level, BE 510

Forms of teaching and learningContact hoursIndependent study time
Lecture2 SWS8 SWS
Exercise class2 SWS5 SWS
ECTS credits6
Graded yes
Form of assessmentWritten exam (90 min)
Restricted admissionno
Further information
Performing lecturer
Prof. Nicolas Schutz, Ph.D.
Lily Ling Yang, Ph.D.
Frequency of offeringSpring semester
Duration of module 1 semester
Range of applicationM.Sc. MMM, M.Sc. Bus. Edu.
Preliminary course work
Program-specific Competency GoalsCG 1, CG 2
LiteraturePaul Belleflamme and Martin Peitz: Industrial Organization – Markets and Strategies
Course outlineElementary Models
Perfect competition, Monopoly, Cournot, Bertrand, Stackelberg competition, Market entry
Product Differentiation
Horizontal differentiation, Bowley model, hoteling model, vertical product differentiation
Pricing Strategies and Price Discrimination
Dynamic Monopoly Pricing, Group Pricing, Menu Pricing, Bundling