Industrial Economics, or Industrial Organization (IO) focuses on firm behavior in imperfectly competitive markets. This course will explore the acquisition and use of market power by firms, strategic interactions among firms, and the role of government competition policy.

In the first semester, we will start with a review of the theory of the firm and the basic of market structures. We will also study the general business practices using some of the latest research in game theory and transaction cost theory. In the second semester, we will examine the effects of limited information on markets and how strategic behavior by firms can alter information. Then we will use dynaimc models describe the evolution of markets and firm behavior over time. Finally, we will analyze the effects of government actions.

This course aims to help students (i) obtain fundamental knowledge and analytical skills of industrial economics; (ii) understand how modern economy functions; and (iii) develop the capacity of observing, investigating, and making decisions about public issues.

Industrial Economics, or Industrial Organization (IO) focuses on firm behavior in imperfectly competitive markets. This course will explore the acquisition and use of market power by firms, strategic interactions among firms, and the role of government competition policy.

In the first semester, we will start with a review of the theory of the firm and the basic of market structures. We will also study the general business practices using some of the latest research in game theory and transaction cost theory. In the second semester, we will examine the effects of limited information on markets and how strategic behavior by firms can alter information. Then we will use dynaimc models describe the evolution of markets and firm behavior over time. Finally, we will analyze the effects of government actions.

This course aims to help students (i) obtain fundamental knowledge and analytical skills of industrial economics; (ii) understand how modern economic functions; and (iii) develop the capacity of observing, investigating, and making decisions about public issues.

本課程係產業組織的延續課程，課程將討論如何提升廠商附加價值的議題，如廠商委外代工與品牌的價值；廣告與無形資產品牌的建立；討論主題也觸及開創高附加價值的藍海策略，包括廠商的產品創新與研究發展、產品的多樣化及系統整合策略。除此之外，本課程也將探討網路經濟的議題，包括的網路外部性的基礎理論，以及面對由此衍生互補性產品所構成不同系統的組合時，廠商所可以採取的競爭與合作的策略；廠商如何利用高的轉換成本鎖定消費者構成競爭的優勢；廠商在開發產品採取開放性系統與封閉性系統的選擇，以及產業標準化的競爭策略。課程將配合產業現況及個案的討論以強化學生的學習，而政府的政策及法令的管制對廠商及產業的影響也在探討之列，希望藉此系列課程增加學生學習產業經濟學的廣度與深度。

This course is a continuation course of industrial organization. The course will discuss how to enhance the added value of manufacturers, such as the value of outsourcing and branding; advertising and intangible asset brand establishment; the discussion topics will also touch on the blue ocean strategy of creating high added value, including product innovation and research and development of manufacturers, product diversification and system integration strategies. In addition, this course will also explore issues of the Internet economy, including the basic theory of network externalities, and the competition and cooperation strategies that manufacturers can adopt when faced with the combination of different systems derived from complementary products; how manufacturers use high switching costs to lock in consumers to form a competitive advantage; manufacturers choose between open systems and closed systems when developing products, as well as the competitive strategy of industrial standardization. The course will be combined with the discussion of current industry conditions and cases to strengthen students' learning. The impact of government policies and legal controls on manufacturers and industries will also be discussed. It is hoped that this series of courses will increase the breadth and depth of students' learning of industrial economics.

Textbook: Carlton, D.W. and J.M. Perloff. 2015. Modern Industrial Organization. Global Edition, 4th Edition. (雙葉書廊代理)
Reference: 陳正倉, 林惠玲, 陳忠榮, 莊春發. 2022. 產業經濟學: 理論與實際. 第四版. (雙葉書廊)

Textbook: Carlton, D.W. and J.M. Perloff. 2015. Modern Industrial Organization. Global Edition, 4th Edition. (Agent by Shuangye Bookstore)
Reference: Chen Zhengcang, Lin Huiling, Chen Zhongrong, Zhuang Chunfa. 2022. Industrial Economics: Theory and Practice. Fourth Edition. (Double Leaf Book Gallery)