02528 - Industrial Economics

Learning outcomes

This course aims at familiarizing the students with the modern Industrial Organization analysis. The course will delve into the behavior of firms and consumers, also focusing on Game-Theory based models of interaction. By the end of the Course the students will be able to: analyze the main characteristics of a market; assess the effects of industrial  and competition policies.

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) Contractual relationships among firms.

• Mergers.
• Price-based vertical restraints.

6) Non-price competition.

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

7) 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

Lectures.

Assessment methods

Written exam: multiple-choice and free-response questions.

Teaching tools

The slides used in class and some sample tests will be posted in the e-learning platform.

Office hours

See the website of Emanuele Bacchiega