Course content

This course will provide students a view on economical methods and theory for coordinating, managing and modelling industrial value chains. Economic instruments and incentives in relation to corporate and optimization models are considered. Possible topics are: supply chain management, forecasting, transfer prices, design and analysis of contracts, agent theory, auctions theory, policy evaluation.

Learning outcome

The position and function of the course:
The course is a mandatory course in the 8th semester for students at the MTIØT program taking managerial economics and operations research (AØO) as their main profile.

Knowledge and skills developed in the course:
After taking this course the students should have advanced knowledge about economic analysis focusing on value chains and networks. They should know how to:
- explain the difference between operations research models and economic models and how they supplement each other;
- model and do economic analysis in industrial value chains;
-compare and understand effects of different price structures, auctions, contract types and incentives;
- consider and analyse how uncertainty and information asymmetry affects decisions in value chains;
- use equilibrium modeling techniques to analyse decisions and prices in competitive and imperfect markets;
- evaluate policy instruments.

Learning methods and activities

Lectures and mandatory exercises. The course is given in English if there are Non-Norwegian-speaking students taking the course.

Compulsory assignments

• Assignments

Recommended previous knowledge

Requires TIØ4118 Industrial Economic Analysis and TIØ4130 Optimization Methods, or similar.

Course materials

To be announced by the start of the semester.