Competition Strategy and Pricing

EBO3 Competition Strategy and Pricing

Spring 2024

Autumn 2024
  • Topics

    The overarching theme in this course is markets and business strategies. The student will learn how the firm should navigate in the market when facing competition and technological shocks.

    In part I, we use economic theory (with a focus on applied game theory) to study how different forms of competition affect strategic choices and interactions between firms. We analyse how data-driven advantages and network effects can lead to an outcome where one or a few firms dominate the market (winner takes all). This has important implications for innovation, competition policy, sustainability issues, and long-term value creation.

    In part II, we use the learning outcomes from part I to study competitive strategies in digital markets where ‘matchmakers’ (platforms) like Vipps, Uber, Airbnb, Finn, Tinder, and so forth, play an important role. Matchmakers connect two or more user groups, such that cross-group network effects arise (which are distinct from classical one-sided network effects like in telecommunications). We ask how multi-sided competitive strategies differ from one-sided strategies, and how digital advertising markets work. We also discuss how firms like Google (in search) and Facebook (in social media) gained such a dominant position, and how entrants can challenge giants in such markets.

    The topics covered in EBO3 are well suited for active learning based on case studies that look at pricing decisions, product positioning, and business strategy more generally for both established firms and potential entrants. We will further use recent European and US antitrust cases from digital markets to discuss strategic choices from the perspectives of market players as well as policy makers.

    In this course, we build on insights from EBO1 (consumer behaviour and market equilibrium). EBO3 and TECH6 are complementary courses that jointly cover empirical, experimental, and theoretical issues in markets where competing firms have market power.

Overview

ECTS Credits
7.5
Semester

Autumn. Will be offered autumn 2026.