MOØ217 Economics of Strategy

Contents and structure

Strategic decisions are crucial for the success or failure of any business organization. Many such strategic decisions are directly related to innovation of products, services or organizational structures, and thus important from an innovation management perspective. While business strategies can be viewed from the perspective of multiple disciplines, the objective of this course is to study and analyze strategic decisions from the perspective of microeconomic theory and game theory. The course consists of five parts:

• Introduction to economics of strategy
• Firm boundaries
• Market and competitive analysis
• Competitive strategies
• Performance measurement and incentives

Learning Outcome

Knowledge

On completion of this course a student has advanced knowledge regarding:

• Basic concepts and aspects of economics of strategy
• Economic models and principles relevant for the study of business strategy
• Game theoretic models and principles relevant for the study of business strategy

Skills

On completion of this course a student is able to:

• Analyze factors relevant for determining firm boundaries
• Analyze strategic interactions in price and non-price competition
• Analyze how firms may avoid entry into and promote exit from their markets
• Analyze strategic commitment and other dynamic aspects of competition
• Analyze how to measure performance and provide incentives to perform

Competence

On completion of this course a student is able to:

• Apply economic models

Entry requirements

None

Teaching methods

Lectures. Cases and problem solving.

Compulsory learning activities

1 assessment must be completed. 

Assessment

5 hour written exam, A-F scale.

Examination support material

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