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EC4070-Industrial Organization Theory
Trinity College Dublin
Lecturer: Martín Paredes
Department of Economics
The objective of the second paper is to apply the concepts and tools you are learning throughout
the course in order to produce an industry report. It will be up to you to choose an industry of
interest to you (including the geographic scope), but first you have to obtain my approval.
Your industry analysis must draw upon the topics we are covering in lecture, and include:
1. A definition of the market, as well as a characterization of the market structure
2. An analysis of recent strategic behavior within this market (i.e. in the last 5 to 10 years),
across all relevant dimensions of firm behavior, including the choice of prices, capacity,
products, advertising, R&D, entry, exit, etc.
3. A more detailed analysis of one firm in this market, focusing on:
a. The behavior of the firm in response to strategic actions of its competitors, in the past
and in the future (e.g., is the firm facing strategic threats in the near future?). You
must also address how the actions may (have) affect(ed) the profitability of the firm.
b. Strategic behavior at the firm’s own initiative, in the past and in the future (e.g., has
the firm made strategic errors in the past?). You must also address how competitors
may (have) respond(ed).
The paper must be well written, organized and clear. You will be graded on how much you can
teach me about the industry. Cite all of your sources appropriately. Since it is not original
research, attribute what you say to appropriate sources. Plagiarism will not be tolerated.
The technical details are as follows: maximum twelve pages (excluding cover, graphs, tables or
references), 2.5-cm. margins, Times-new-roman 12-point font throughout, at a space of 1.5 lines.
All pages must be numbered. This page provides an example
April 2nd, 2007 (during Monday tutorial)
Penalty for late submission:
10% per day overdue.