2646 Economics of Strategy, 6 cr

Intermediate studies
Teaching language: 
Course Description: 

The course presents an introduction to the application of strategic arguments as a basis for decision making in business. It prepares students to conduct industry and competition analysis. 

Topics considered include:

  • Management in industries with strategic interaction between firms (oligopoly markets)
  • Merger analysis
  • Strategic delegation
  • Product differentiation and strategic price discrimination
  • Strategic outsourcing
  • Competition with switching costs
  • Dynamic competition
  • The economics of network industries
  • Microeconomic policies: competition policy, technology policy, trade policy and regulation
Learning Goal: 

You can apply strategic arguments to support decision making in business and as a basis for industry analysis.

After completing the course, you will be able to: 
  • carry out market analysis focusing on the topics listed above.
  • assess the effects of strategic competition on market performance
  • decompose these effects into effects on industry profits and consumer welfare.

A course in microeconomic analysis, for example 2669 Mikroekonomisk analys, is recommended.

Total Student Workload: 

160 hours divided into
Scheduled (contact) hours: 32 h
Non-scheduled work:128 h


Lectures, individual assignments

Literature and Course Material: 
  • Cabral, L. (2017). Introduction to industrial organization.  Second Edition. Cambridge, MA: MIT Press.

Written examination,  individual assignments

Non-degree studies (Open University, JOO and Contract Studies): 

Open university quota: 3
Quota for JOO-students: 3