Economics of Business Strategy
Degree programs: MSc Management, MSc Tri-Continental
The content is clustered around two main topics: Within-firm strategies to be fit for the market, and market-strategies to be successful in the interaction with customers and in competing with other firms. As for the second topic, the focus is on game theory, price and quantity competition in oligopolies, optimal spending for advertising, and sophisticated pricing strategies like bundling. As for the first topic (within firm strategies), we will discuss cost-leadership strategies, we will analyze the “make-or-buy” problem, and we will get to learn tools to reduce the risk from currency fluctuations which heavily impact internationally active firms.
The organization of the course content is as follows:
• Introduction: What is Strategic Thinking?
• Game Theory I: Simultaneous Games
• Game Theory II: Sequential Games
• Cost-Leadership Strategies: Horizontal and Vertical Boundaries of a Firm
• Market Strategies: Quantity versus Price Competition
• Product Differentiation Strategies
• Hedging Strategies: Protecting against Exchange Rate Volatility
|Offered by||Prof. Dr. Günter Lang|
|ECTS credits||5 Credit Points|
|Method of examination||Written exam|