03862 - Industrial Organization

Course Unit Page

SDGs

This teaching activity contributes to the achievement of the Sustainable Development Goals of the UN 2030 Agenda.

Industry, innovation and infrastructure Responsible consumption and production Partnerships for the goals

Academic Year 2021/2022

Learning outcomes

After taking the course, the student is expected to be familiar with the evolution of the theory of industrial organization, game theory instruments, the basic models of Cournot, Bertrand and Stackelberg and the issues concerning mergers, cartels, entry barriers, innovation and network externality.

Course contents

1) Game theory: basics and equilibrium concepts
2) Foundations of oligopoly theory
3) Mergers
4) Cartels and implicit collusion
5) Product differentiation
6) Entry barriers
7) Innovation
8) Standardization and networks externalities

Readings/Bibliography

Garella, P. and L. Lambertini (2002), Organizzazione industriale, Carocci, Roma, chs 9-16.

Teaching methods

Class lectures, plus remote video connection. Formal analysis of existing models. All mathematical aspects will be illustrated in class.

Students will become familiar with the construction of basic theoretical models and the selective addition of ingredients required for the analysis of extensions and applications, as well as the resulting normative implications.


 

Assessment methods

The structure of the exam covers the compulsory integrated course, and has the objective of verifying the candidate's knowledge of theoretical concepts as well as her/his ability to interpret policy implications.

The exam can be taken in three different forms:

I. Two written exams, 2 hrs each. The first concerns game theory and basic oligopoly theory, the second covers all applications from mergers to network externalities. Both exams contain six questions on matters illustrated in class. The first includes three questions on game theory and three on oligopoly theory. The candidate must answer three questions, at least one from each group. The second includes six questions on applications, and the candidate must choose three of them.

II. A single written exam covering the integrated course, 2 hrs and 30'. It contains eight questions, four about game theory and oligopoly theory, four about applications. The candidate must pick four of them, at least one from each group.

III. A partial exam, 1 hour and 45'. This contains eight questions, four about game theory and oligopoly theory, four about applications. The candidate must pick three of them, at least one from each group. To complete the exam, the candidate must produce an essay on a specific theme chosen in agreement with the teacher.

In case online exams will be envisaged by the University of Bologna, the structure of the written exam is the same. The exam will be run through Zoom or Teams and Exams Online (EOL). Detailed instructions on how to manage and hand in the online exam are available on the course page on the VIRTUALE platform.

The maximum possible score is 30 cum laude, in case all anwers are correct, complete and formally rigorous.

The grade is graduated as follows:

<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 e lode excellent

Teaching tools

The slides used during the course will appear in its web page, together with the link to the video of each lecture as soon as it becomes available. The material for essays will be chosen on a case by case basis.

Office hours

See the website of Luca Lambertini