ECN431 Applied Data Analysis of Firm Strategy and Competition

• Topics

  As an analyst, manager or economist, there are many important problems you can only address by analyzing market data. For instance, "if we increase the price of one product by 5%, what is the likely effect on demand for this and other products in our portfolio, as well as competitors' products?", "how can we understand competition in highly concentrated industries?", or "how does regulation change firm and consumer behavior?"

  Even if you know a model that is suitable in a given context, the relevant effects often depend on unknown moments, such as "price sensitivity", "cost structure", and "substitutability", which you typically have to obtain estimates on. This course will introduce you to methods suited for this purpose, as well as provide you with sufficient knowledge to interpret the results and give you hands-on training in conveying the information in professional settings.

• Learning outcome

  After completing the course, the students will be able to

  Knowledge:

  • acquire sound knowledge of central economic models of market behavior and imperfect competition
  • understand the relationship between models, data, and econometric analysis

  Skills:

  • learn to use data tools to perform and keep track of the necessary analysis, produce professional tables and figures, and replicate results at a later time
  • estimate supply and demand in markets with imperfect competition
  • independently apply econometric techniques to analyze market data, for instance as part of a master thesis, or in your future professional career
  • assess strengths and weaknesses of the models and econometric techniques taught

  General competence

  • discuss problems and opportunities in learning from data in organizations

• Teaching

  Plenary lectures and computer labs

• Recommended prerequisites

  Econometrics equivalent to ECN402.

  Familiarity with basic calculus will be assumed.

  In some cases, familiarity with the concepts introduced in BUS441 or ECO427 will be helpful; however, such knowledge is not assumed, and the important points will be covered in class.

• Assessment

  Two individual assignments (50%) and one group-based term paper (50%)

• Grading Scale

  Grading scale A-F

• Computer tools

  STATA or R

• Literature

  Peter Davis & Eliana Garcés (2009): Quantitative Techniques for Competition and Antitrust Analysis, Princeton University Press

  Selected articles and chapters