The objective of this course is to provide students with the foundations they need to understand how firms gain and maintain competitive advantage, and how competitive advantage shapes competition and market outcomes. Methodologically, the course synthesizes and integrates various economic and managerial approaches with a stronger focus on the economic perspective.
The course starts by discussing concepts of competitiveness and its drivers. We then illustrate the effects of firm heterogeneity in terms of competitiveness on competition and market outcomes, addressing product- and process-related factors of competitiveness. In addition, we analyze firms' incentives to invest in competitive activities such as product and/or process R&D.
- Oligopolistic markets with cost heterogeneity
- Strategic process R\&D choice in oligopolistic markets
- Vertical product differentiation and natural oligopolies
- Horizontal product differentiation
- Strategic product R\&D choice in oligopolistic markets