TOPICS:

Curriculum vitae

Innovation and Industrial Organization

Summary

The purpose of this course is the presentation of recent approaches to the technological innovation in the context of Industrial Organization. The focus will be set mainly on the relationship between innovation and market structures. Whenever they are relevant, policy issues will also be considered.

Topic List:

  1. Introduction: Technology, Products and Market Structure
    • Arrow, K., 1962, Economic Welfare and the Allocation of Resources for Inventions, in The Rate and Direction of Inventive Activity, ed. R. Nelson, Princeton University Press (also in the collected papers of J.K. Arrow).
    • Dosi, G. Sources, Procedures and Microeconomic Effects of Innovation, Journal of Economic Literature, 26, 1120-1171.
    • Kamien, K. and N. Schwartz, 1982, Market Structure and Innovation, Cambridge University Press.
    • Loury, G.C., 1979, Market Structure and Innovation, Quarterly Journal of Economics, 93, 395-410.
    • Nelson, R. and S. Winter, 1982, An Evolutionary Theory of Economic Change, Harvard University Press, Cambridge, MA.
    • Rosenberg, N., 1994, Exploring the Black Box, Cambridge University Press.
    • Schumpeter, J.A., 1943, Capitalism, Socialism and Democracy, Unwin Hyman, London.
  2. Innovation Race
    • Kamien, K. and N. Schwartz, 1982, Market Structure and Innovation, Cambridge University Press.
    • Reingaum, J., 1989, The Timing of Innovation: Research, Development, and Diffusion, in Handbook of Industrial Organization, ed. R. Schmalensee and R. Willig, North-Holland.
  3. Cooperation in Research & Development (R&D)
    • d'Aspremont, C. and A. Jacquemin, 1988, Cooperative and Noncooperative R&D in Duopoly with Spillovers, American Economic Review, 78, 1133-1137.
    • Choi, J., 1993, Cooperative R&D with Product Market Cooperation, International Journal of Industrial Organization, 11, 553-571.
    • Katz, M., 1986, An analysis of Cooperative Research and Development, Rand Journal of Economics, 17, 527-543.
    • Katz, M. and J. Ordover, 1990, R&D Cooperation and Competition, Brookings Paper on Economic Activity, Microeconomics, 137-203.
  4. Patents and Licensing
    • Chou, C. and O. Shy, 1991, New Product Development and the Optimal Duration of Patents, Southern Economic Journal, 57, 811-821.
    • T.P.W. van Dijk, 1994, The Limits of Patent Protection, Universitaire Pers, Maastricht.
    • Kaufer, E., 1989, The Economics of the Patent System, Hardwood Academic Publishers, New York.
    • Nordhous, W., 1969, Invention, Growth, and Welfare: A Theoretical Treatment of Technological Change
    • Katz, M. and C., Shapiro, 1985, On the Licensing of Innovations, Rand Journal of Economics, 16, 504-520.
    • Katz, M. and C., Shapiro, 1986, How to Licence Intangible Property?, Quarterly Journal of Economics, 101, 567-590.
  5. Compatibility and standards
    • Chou, C. and O. Shy, 1990, Network Effects without Network Externalities, International Journal of Industrial Organization, 8, 259-270.
    • David, P., 1985, Clio and the Economics of QWERTY, American Economic Review, 75, 332-336.
    • Economides, N., 1989, Desirability of Compatibility in the Absence of Network Externalities, American Economic Review, 79, 1165-1181.
    • Farrel, J. and G. Saloner, 1986, Standardization and Variety, Economics Letters, 20, 71-74.
    • Katz, M. and C. Shapiro, 1985, Network Externalities, Competition and Compatibility, American Economic Review, 75, 424-440.
    • International Journal of Industrial Organization, Special Issue on Network Economics, 14, no.6.
    • Economics of Networks Internet Site by Nicolas Economides.
  6. Innovation and Industry Dynamics
    • Andersen, E.S., 1994, Evolutionary Economics, Pinter Publishers.
    • Dosi, G. et al., 1988, Technical Change and Economic Theory, Pinter Publishers, London.
    • Ericson, R. and A. Pakes, 1995, Markov-Perfect Industry Dynamics: A Framework for Empirical Work, Review of Economics Studies, 62, 53-82.
    • Metcalfe, J.S. and Miles, I., 1995, Standards, Selection and Variety: An Evolutionary Approach, Information Economics and Policy, 6, 243-295.
    • Nelson, R. and S. Winter, 1982, An Evolutionary Theory of Economic Change, Harvard University Press, Cambridge, MA.
    • Schumpeter, J.A., 1943, Capitalism, Socialism and Democracy, Unwin Hyman, London.
    • Silverberg, G. and Verspagen, B., 1994, Economic Growth and Behavioral Adaptation: An Application to an Evolutionary Growth Model, IIASA WP 94-84, Laxenburg.
    • Nelson and Winter's Model in Java

Textbooks:

  • T.P.W. van Dijk, 1994, The Limits of Patent Protection, Universitaire Pers, Maastricht.
  • Tim Frazer, 1992, Monopoly, Competition and The Law, Harvester/Wheatsheaf.
  • Stephen Martin, 1993, Advanced Industrial Economics, Basil Blackwell.
  • Oz Shy, 1995, Industrial Organization, MIT Press.
  • Jean Tirole, 1988, The Theory of Industrial Organization, MIT Press.

Prerequisites:

  • Optimization and Basic Game Theory
  • Perfect competition
  • Monopoly
  • Oligopoly with homogeneous and differentiated products

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(c) 1999-2012,
Murat Yildizoglu

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