B9130 - FONDAMENTI DI ECONOMIA INDUSTRIALE

Learning outcomes

Upon completion of the course, the student will gain fundamental knowledge of Industrial Economics. (i) Consumer theory basics: preferences, budget constraint, choice, individual demand and surplus, aggregated demand, and elasticity. (ii) Production theory: market structures, technology, optimal choice of production factors, cost minimization, cost function, average and marginal cost functions. (iii) Perfect competition: profit maximization under perfect competition, firm and industry supply, competitive equilibrium. (iv) Indexes of market structure and market power. (v) Pure monopoly and basic oligopoly analysis: Cournot and Bertrand models. Whenever possible, the analysis will be developed with reference to digital markets.

Course contents

1. Consumer Theory:

• Budget constraint.
• Preferences.
• Choice.
• Individual and market demand.
• Individual and aggregate surplus.

2. Production Theory:

• Production set and production function.
• Profit maximization through the choice of input quantities.
• Cost minimization and the cost function.
• Average and marginal costs.
• Profit maximization through the choice of output level of a competitive firm.
• Individual and aggregate supply function.

3. Equilibrium in Markets without Strategic Interaction:

• Competitive equilibrium: definition, characteristics, properties.
• Pure monopoly: definition, characteristics, properties.

4. Equilibrium in Markets with Strategic Interaction:

• Introduction to Game Theory.
• Quantity competition: the Cournot model.
• Price competition: the Bertrand model.

5. Introduction to auction tools.

Readings/Bibliography

• Hal .R. Varian, Microeconomia, Cafoscarina, Venezia, last edition.

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

• Further references will be provided when needed.

Teaching methods

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