about the course: Firm Analysis and Strategy is an integrative course that provi

about the course:
Firm Analysis and Strategy is an integrative course that provides frameworks, tools, and concepts to help make sound business decisions based on theoretical and empirical research from the fields of microeconomics and competitive strategy.
The course first explores market demand and supply, economic costs, pricing strategies, entry and exit, game theory and price discrimination. It then relates this material to strategic considerations associated with the attractiveness of various markets; how firms use resources and capabilities for competitive advantage; how firms position themselves in markets in response to rivals’ competitive decisions; among others. Finally, the course delves into advanced subjects at the intersection of microeconomics and strategy, such as horizontal integration, vertical integration, and the nonmarket environment. Throughout the course, students are placed in the position of decision makers (or their advisors) and are expected to address various challenges germane to the firm’s competitive advantage. Reading materials provide contextual familiarity and teach the tools and skills required for meeting these challenges.
The main objective of this course is to provide the tools that managers need to make economically and strategically sound business decisions, and ultimately to identify and/or create sources of competitive advantage. Emphasis in the course is placed on how managerial action shapes and determines firm profitability.
Please discuss if releveled the economic relevance of each.
What is market power? Is it necessary for profit?
How can companies with market power set prices that maximize profit?
How can pricing analysis be used to support entry/exit decisions?
Explain the connection between entry and short- and long-run profit.
What economic considerations make entry more difficult?
What is the connection between demand elasticity and the profit maximizing price?
How do simultaneous move games and sequential move games differ?
How do one-shot versus finitely repeated games versus infinitely repeated games differ?
What are some examples of each?
How should you respond to the output/pricing decisions of your competitors?
Why does competition reinforce the Nash equilibrium solution? What are the implications for market analysis?
What is a strategic commitment?
How can a strategic commitment be used by incumbents to deter entry or by entrants to induce a “soft” competitive response?
What considerations guide the proper response of incumbents to entry?
How does complete, indirect segmentation and direct segmentation price discrimination differ?
Under what conditions is peak-load pricing typically used?
Under what conditions is bundling most effective?