81604 - Industrial Organizations: Theory and Applications

Learning outcomes

Students attending this course will acquire a thorough knowledge of how firms interact in markets. By the end of the module, students will understand strategic behavior in markets and how firms may gain and exploit a competitive advantage over their rivals. Furthermore, students will gain a thorough understanding of competition policy: in particular, what are its aims, how it works, and how firms must adapt their behavior in order to avoid antitrust sanctions.

Course contents

Part I

List of possible topics to be covered.

• Introduction: Why study IO”, “Market definition”, “What is a market” (T Introduction)
• Theory of the firm (T Ch. 1)
• Monopoly (T Ch. 2)
• Product Selection (T Ch. 2)
• Price discrimination (T Ch. 3)
• Short run price competition (T Ch. 5)
• Dynamic price competition and Collusion (T Ch. 6)
• Product differentiation (T Ch. 7)
• Entry (T Ch. 8)
• Innovation and R&D (T Ch. 10)

(Reference T to the textbook by J. Tirole.)

Part II

Advanced topics with students presentations. Possible topics to cover

• Contracts and competition
• Exclusive contracts
• Privacy policies
• Search and information
• Platforms
• Intellectual Property Rights
• Models of innovation
• Patents
• Non-linear pricing and Bundling

Prerequsites.

Since this is a graduate course jointly offered with the PhD in Economics at the University of Bologna, students are expected to command the basics of game theory. A very good knowledge at the level of Micro 1 and Micro 2 LMEC is required.

Precise list of topics is available here

https://sites.google.com/view/lmecindustrial

Readings/Bibliography

Textbooks.

The Theory of Industrial Organization (1988). Jean Tirole. MIT Press.

Industrial Organization. A Strategic Approach (2000). Church Jeffrey and Roger Ware. McGraw-Hill. Available freely online at http://homepages.ucalgary.ca/~jrchurch/page4/page4.html.

Industrial Organization: Markets and Strategies (2010). Paul Belleflamme and Martin Peitz. Cambridge University Press.

Other materials.

Other materials will be distributed on the course webpage:

https://sites.google.com/view/lmecindustrial

Teaching methods

Traditional class lectures.

Students' presentations.

Assessment methods

Students' presentations.

Class participation.

Teaching tools

Class lecturing and presentations.

Links to further information

https://sites.google.com/view/lmecindustrial

Office hours

See the website of Giacomo Calzolari

See the website of Vincenzo Denicolò