ECON-L1300 - Empirical Industrial Organization I: Static models, Lecture, 28.2.2022-11.4.2022

Guest access
Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.

LEARNING OUTCOMES

The purpose of the course is to familiarize students to advanced topics and methods in Empirical Industrial Organization (IO). At the end of the course, students have learned how to estimate static demand and supply using both market level and individual level data, and how the estimation results can be used in applications. The course will start the process of preparing economics Ph.D. students to conduct thesis research in this area.

Credits: 6

Schedule: 28.02.2022 - 11.04.2022

Teacher in charge (valid for whole curriculum period):

Teacher in charge (applies in this implementation): Iivo Vehviläinen

Contact information for the course (applies in this implementation):

Practical matters: iivo.vehvilainen@aalto.fi

Other lecturers: otto.toivanen@aalto.fi, tanja.saxell@vatt.fi, ari.hyytinen@hanken.fi

Exercises: tuomas.markkula@aalto.fi, jaakko.m.markkanen@aalto.fi

CEFR level (valid for whole curriculum period):

Language of instruction and studies (applies in this implementation):

Teaching language: English. Languages of study attainment: English

CONTENT, ASSESSMENT AND WORKLOAD

Content

  • valid for whole curriculum period:

    The course starts with a reminder of logit and nested logit models before moving on to BLP models, identification issues, and the choice of optimal instruments. In addition, we will cover market power and merger analysis, and other applications.

Assessment Methods and Criteria

  • valid for whole curriculum period:

    Exercises (60 %), exam (40 %)

DETAILS

Substitutes for Courses
Prerequisites

FURTHER INFORMATION

Further Information

  • valid for whole curriculum period:

    Teaching Language : English

    Teaching Period : 2022-2023 No teaching
    2023-2024 Spring III

Details on the schedule

  • applies in this implementation

    Week 1 

    Mon, 28 Feb 2022, 14.15-15.45 – Lecture 1 – Otto

    Wed, 2 Mar 2022, 14.15-15.45 – Lecture 2 – Otto

    Introduction: Structural econometrics, modelling 

    Discrete choice models: Logit and nested logit, (welfare, interpretation of parameters, market& individual level data)

    Exercise #1 (logit, nested logit)

    Week 2

    Mon, 7 Mar 2022, 14.15-15.45 – Lecture 3 – Tanja

    Wed, 9 March 2021, 14.15-15.45 – Lecture 4 – Tanja

    Random coefficient models, BLP

    Exercise #2 (BLP)

    Week 3

    Mon, 14 March 2022, 14.15-15.45 – Lecture 5 – Ari

    Wed, 16 March 2022, 14.15-15.45 – Lecture 6 – Ari

    Econometric identification, normalizations in identification, instruments for and identification in BLP

    No exercise

    Week 4

    Mon, 21 March 2022, 14.15-15.45 – Lecture 7 – Otto

    Wed, 23 March 2022, 14.15-15.45 – Lecture 8 – Otto

    Topics: Reading group style treatment of a chosen paper

    Supply side (start from simple logit / one product per firm).

    Exercise #3 (Simulate data)

    Week 5

    Mon, 28 March 2022, 14.15-15.45 – Lecture 9 – Iivo

    Wed, 30 March 2022, 14.15-15.45 – Lecture 10 – Riku Buri / KKV + Iivo

    Applications: 1) Merger simulation, 2) Market power 

    Exercise #4 (Merger simulation)

    Week 6

    Mon, 4 April 2022, 14.15-15.45 – Lecture 11 – Otto

    Wed, 6 April 2022, 14.15-15.45 – Lecture 12 – Tanja

    Applications: 3) Consideration sets, 4) Demand estimation: Choice frictions

    No exercise

    EXAM: 11 April 2022 13.00 – 16.00


Rules of Conduct - Students´ Rights and Responsibilities (in force from 1 August 2020)

Aalto University Code of Academic Integrity and Handling Violations Thereof