02528 - Industrial Economics

Learning outcomes

Upon completion of the Course, the student has gained a detailed knowledge of: the object, goals and methodology of the modern industrial organization; discriminating monopoly, product quality and variety under monopoly; static games and quality and price competition; Dynamic games and quality choice; limit pricing and entry deterrence; modern theories of predation; collusion; mergers; vertical relations and vertical restraints; information and advertising; research and development and patents; network economics; regulation and liberalization.

Course contents

1) Basic concepts.

• Introduction.
• Some useful microeconomic ideas.
• Market structure and market power
• Technology and production costs.

2) Market power

• Price discrimination under monopoly: linear pricing.
• Price discrimination under monopoly: non-linear pricing.
• Product variety and quality under monopoly.

3) Oligopoly and strategic interaction.

• Static games and Cournot competition.
• Price competition.
• Sequential competition.

4) Anticompetitive strategies.

• Limit pricing and entry deterrence.
• Predation: recent developments.
• Collusion and repeated games.
• Collusion: how to identify and fight it.
  

5) Non-price competition.

• Advertising, market power, competition and information.
• Research and Development and patents.

6) Complementary Topics.

• Networks
• Regulation and liberalization

Readings/Bibliography

L. Pepall, D. Richards, G. Norman e G. Calzolari, Organizzazione Industriale, McGraw-Hill, Milano, last edition.

Further references will be given when needed.

Teaching methods

Traditional lectures

Assessment methods

Closed-book written exam: multiple-choice questions (20 points) and open-ended questions/exercises (12 points), duration: 1 hour.

The maximum score obtainable by providing all correct, complete answers with an adequate level of formal rigor is 30 with honors (30 e lode).

Grading scale:

• <18: Fail
• 18–23: Pass
• 24–27: Good
• 28–30: Very good
• 30 with honors: Excellent

Any online exams will take place on the EOL platform and will have the same structure.

The use of calculators is allowed.

Students with learning disabilities (DSA) or temporary/permanent disabilities are advised to contact the relevant University office in advance (https://site.unibo.it/studenti-con-disabilita-e-dsa/en). The office will propose any necessary accommodations, which must be submitted at least 15 days in advance for approval by the instructor, who will assess their suitability also in relation to the course learning objectives.

With regard to assessment, the use of AI is prohibited. Any use constitutes a violation of academic integrity.

Teaching tools

The slides used during the lectures, together with some past exam papers, will be made available on the Virtuale platform.

Office hours

See the website of Emanuele Bacchiega