For information about the course please refer to https://sites.google.com/site/tomasoduso/teaching/eio
Please register for participation and write an e-mail to tduso@diw.de (max. 20 participants).
Exact times of the lectures will be discussed in the first meeting on October 14, 2024 at 10 am.
Venue: DIW Berlin, Mohrenstraße 58, 10117 Berlin, Popper Room (2.3.020)
General Information
Please notice that the module will be offered as a block course. See below for further information.
The exact time of the lectures can change and will be discuss during the
introductory meeting on October 14, 2024 at 10am
which will be he lectures will be held at the DIW Berlin, Mohrenstr. 58, 10117 Berlin, Popper Room (2.3.020)
Please send me an Email (tduso@diw.de) to register.
Instructors
Prof. Dr. Tomaso Duso, Dr. Alexander Schiersch
Office Hours
By appointment (E-mail: tduso@diw.de, Tel: +49 30 89789 520 )
Credit points: 6 ECTS
Content
This course aims to introduce the student to current methods in Empirical Industrial Organization (EIO). In the first part of the course, we deal with the structural approach developed in the so called “New Empirical Industrial Organization” (NEIO) framework. After an introductory overview of the historical developments in the field of EIO, we start by looking at techniques for demand estimation in homogeneous and differentiated products markets. We then move to the simultaneous analysis of demand and supply relationships and compare various methods for estimating firms’ market power and strategic interactions based on static game-theoretic models of oligopolistic competition. Next, we focus on analyzing firms’ production decision and discuss structural models to estimate production function and productivity. In the final part of the course, we will look at applications of these techniques to evaluate public policies such as merger control and regulation. We conclude with a discussion of empirical techniques to detect collusion.
Learning Outcomes
A range of econometric tools has been developed to analyze the behavior of firms and consumers to understand the functioning of markets. This course aims to provide students the ability to formulate, estimate, and interpret demand and supply schedules as well as the degree of market power by firms. These are then used to make causal inference on market related policies. A key ingredient of the course is the application of these methods to actual data in programming sessions.
Discussions during the lecture and seminar, a presentation, and several homeworks will help improving the student's research, writing and presentation skills.
Description of Teaching and Learning Methods
Block scheduling with lectures and tutorials. Additional programming tutorials with Stata or R.
Test description of the examination:
The portfolio examination consists of the following elements, adding up to a maximum of 100 credits. The grading follows the joint conversion key of the School of Economics and Management
3 homeworks 60%
1 presentation 20%
1 final exam 20%
Prerequisites for participation in the courses:
Basic knowledge in microeconomics, econometrics and micro-econometrics is required. Basic knowledge in Industrial Economics from the courses "Industrieökonomik" and “Competition Policy” is highly recommended.
Applicability: MINE (field course), M. Sc. Wi-Ing (Wahlpflicht Wirtschafts- und Sozialwissenschaften - VWL), PhD Program BSoE & DIW GC
Length of the module: The module can be completed in 1 semester.
Participants: Max 20 Participants
Registration: To register please send an e-mail to tduso@diw.de
Literature:
Berry, Steve and Ariel Pakes, (2003): “Empirical Models of Firms and Markets,” Lecture notes.
Reiss, Peter C. and Frank Wolak, (2008): “Structural Econometric Modeling: Rationales and Examples from Industrial Organization,” in J.J. Heckman and E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 64 Elsevier. (http://www.stanford.edu/~preiss/makeit.pdf).
Ackerberg, Daniel, C. Lanier Benkard, Steve Berry, and Ariel Pakes, (2008): “Econometric Tools for Analyzing Market Outcomes, ” in J.J. Heckman and E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 63 Elsevier. (https://web.stanford.edu/~lanierb/research/tools8l-6-8.pdf).
Angrist J. D. and J.-S.Pischke, (2010): “The Credibility Revolution in Empirical Economics: How Better Research Design is Taking the Con out of Econometrics,” Journal of Economic Perspective, 24, 3-30. (http://econ.lse.ac.uk/staff/spischke/AP%20JEP.pdf)
Einav Liran and Jonathan Levin, (2010): “Empirical Industrial Organization: A Progress Report,” Journal of Economic Perspective, 24, 145-162. (http://www.stanford.edu/~jdlevin/Papers/IO.pdf)
Davidson Russell and James G. MacKinnon, (2004): Econometric Theory and Methods, Oxford University Press, Oxford.
Motta, Massimo (2004): Competition Policy. Theory and Practice, Cambridge University Press.
Additional references will be distributed during the lecture
