B5090 - ECONOMICS II: INDUSTRIAL ORGANIZATION

Learning outcomes

In this course students will apply notions and concepts learned in the introductory course of microeconomics, to delve into the fundamental principles that govern market structures and strategic behavior of firms. By the end of the course, students will possess a comprehensive understanding of the theories and frameworks requested to analyze and evaluate the dynamics of competition, the sources of market power, and strategic decision-making within industries. They will be equipped to apply these concepts to real-world scenarios, fostering the ability to formulate effective business strategies and comprehend the intricacies of strategic interaction on the marketplace.

Course contents

The course covers key topics in the fields of applied microeconomics and industrial organization, aimed at understanding business strategies and competition dynamics. It is structured into two modules: the first provides a foundational overview, while the second focuses on applications with specific relevance to the tourism, hospitality, and public transportation sectors.

 

Module 1 (prof. Stefano Bolatto):

1. Market regimes and imperfect competition models
2. Oligopoly theory, strategic interaction and sequential vs. simultaneous games
3. Product differentiation strategies (localized competition, horizontal and vertical product differentiation)
4. Price discrimination: group/personalized pricing vs. menu pricing
5. Pure and mixed bundling strategies (es. holiday packages)

 

Module 2 (Prof. Caterina Pavese):

1. Intertemporal price discrimination: clearance sales vs introductory offers
2. Advertising strategies (informative vs persuasive) and non-price competition
3. Asymmteric information and signaling through pricing and advertising
4. Applications to destination management, hospitality and public transportation

Readings/Bibliography

Belleflamme, Paul, and Martin Peitz, “Industrial organization: markets and strategies”, Cambridge University Press, 2015.

Additional material will be distributed in class, or uploaded on the web page of this course on Moodle (www.virtuale.unibo.it).

Teaching methods

Module 1: Delivered entirely through traditional lectures, while maintaining an interactive environment that encourages discussion between students and the instructor.

Module 2: Features a blended teaching approach that combines traditional lectures with homework assignments and small-group projects, culminating in student-led, in-class presentations during the final weeks of the course.

Assessment methods

Module 1 Assessment

The assessment takes place as a closed-book written exam in the Rimini Campus computer laboratory via the EOL platform. The exam consists of:

• One open-ended question (chosen by the student from two proposed options).
• A series of 10 multiple-choice questions covering all other textbook chapters and course topics.

Students can take this exam either as a midterm (at the end of Module 1) or during any of the three official exam sessions scheduled for the academic year.

 

Module 2 Assessment

For attending students, the evaluation for this module is split into two components:

• A short closed-book written exam, administered under the same laboratory/EOL procedures as Module 1, but consisting solely of one open-ended question (chosen from two proposed options).
• A small-group presentation, based on an assignment chosen by groups of 2 to 3 students from a list provided by the instructor, covering topics from either Module 1 or Module 2.

Students who do not participate in the group presentation must take an extended written exam for Module 2. This extended version includes both multiple-choice and open-ended questions, administered via the same EOL laboratory procedures as the Module 1 exam.

 

Final Grade Breakdown (Out of 30)

Assessment Component Maximum Score

Module 1 Written Exam 15 / 30

Module 2 Written Exam 5 / 30

Group Work / Presentation 10 / 30

Note: additional bonus points may be awarded to attending students who demonstrate active participation and engagement during class discussions.

 

Retakes and Grade Rejection Policy

• Retaking Components: Students who are unsatisfied with their final grade, or who do not achieve a passing grade overall, may retake the exam during any of the three official exam dates. Depending on their previous scores, students can choose whether to retake the exam for both modules or only one.
• Rejecting a Passing Grade: In accordance with university regulations, students have the right to reject a passing grade (equal to or higher than 18/30) and retake the exam.
• One-Time Limit: This right to reject a grade can only be exercised once, regardless of whether the student chooses to retake the exam on the entire program or on just one of the two modules.

 

Note: AI can be a useful tool to assist individual study with in-depth analysis, summaries, and self-assessment paths. Regarding assessment of learning, a limited, declared, and non-substantial use of AI is permitted for supporting activities (summaries, reformulations). Substantial use for completing parts of the exam is not permitted.

Teaching tools

All teaching materials will be uploaded on the course page on the Moodle platform (www.virtuale.unibo.it)

Office hours

See the website of Stefano Antonio Bolatto

See the website of Caterina Pavese