30 NQF credits at HEQSF level 9
Course entry requirements: Honours in Economics or equivalent or at the discretion of the Head of Department. Students not registered for an Economics Masters programme will need permission from the graduate convenor.
The objective of this course is to introduce recent quantitative techniques which are used to empirically implement and test models of consumer and competition between firms. These models are commonly applied to competition policy and regulatory proceedings, for to assess the effects of a merger on competition or to regulate telecommunication operators. During the students should become comfortable with the application of these techniques and understand their limitations. This course should be of interest for students who intend to work as economists at antitrust authorities, industry regulators, and economic consulting firms or pursue a career as a researcher in academia. The course will be divided into two interchanging parts. First, we will derive theoretical models in the classroom. Next, we will estimate these models using Stata and real data from different industries in the computer lab. About 50% of the course will be devoted to lab exercises. You will also receive regular computer exercises to be able to practice the applications by yourself.
Lectures notes and a reading list of relevant academic and policy papers will be provided for each topic. The following topics will be covered in the class:
(1) Econometric methods for estimation of simultaneous equations models of demand and supply
(2) Estimation of oligopolistic models of competition and tests for market conduct
(3) Estimation of differentiated products demand functions
(4) Merger simulation
(5) Detecting collusion and estimation of damages
(6) Estimation of models of market entry
(7) Quantitative methods used to define markets in antitrust proceedings
DP requirements: None
Assessment: Coursework consists of 4 homework assignments (30%) and one presentation (10%); final examination (60%).
Last updated : 18 Apr 2018