84226 - Strategy and Economic Organization

Course Unit Page


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

Quality education Responsible consumption and production

Academic Year 2021/2022

Learning outcomes

The aim of the course is to provide students with the skills to analyze the competitive structure of industries and to accordingly develop corporate strategies. In particular, the course focuses on decisions concerning growth strategies, diversification, make/buy decisions, pricing and entry or exit from industries.

Course contents


1) Introduction. Cost functions and quantity in perfect competition.

2) Production and growth strategies with scale and learning economies.

3) Diversification strategies.

4) Vertical integration/disintegration. Make or Buy decisions.

4.1 - Transaction cost theory.

4.2 - Property rights theory (Grossman, Hart e Moore).


5) Markets and Competition 

5.1 - The Basics of Competitor Identification.

5.2 - Monopolistic Competition.

5.3 - Oligopoly: Cournot Quantity Competition.

5.4 - Oligopoly: Bertrand Price Competition.


6) Industry Entry and Exit

6.1 - Bain’s Typology of Entry Conditions.

6.2 - Entry-Deterring Strategies: Limit Pricing.

6.3 - Entry-Deterring Strategies: Predatory Pricing.

6.4 - Strategic Bundling


7) Dynamic of Competition

7.1 - Strategic Commitment.

7.2 - Stackelberg model.

7.3 - Tough and strong commitments. A taxonomy of commitment strategies.

7.4 - Dynamic pricing rivalry and Tit-for-Tat pricing.

7.5 - Impediments to price coordination.


Besanko, D., Dranove, D., Shanley, M. and S. Schaefer. (2012). Economics of Strategy. 6th Edition. Wiley.

Assessment methods

The exam tests:

  • the knowledge and the understanding of the models and the concepts presented in the lectures;
  • the capability of using models and concepts to analyse, and deal with, economic and organizational phenomena.

The exam is a written test of both theoretical understanding and problem solving capability. Specifically, the test includes:

  • Questions with multiple choice;
  • exercises;
  • questions with open reply often requiring short essays.

The exams will be offered in January, February and September. Students who fail the exam can access the following session of exam.

To seat for the exam students need to register on Almaesami within reported deadlines. Students who are not able to register within the deadline are requested to promptly refer to both the school secretary and the teacher. The teacher takes the final decision on whether accepting or not students without regular registration.

The results of exams are published on Almaesami, usually within a week from the date of the exam. To register the credit for the exam, students need to approve the received mark by sending to the teacher an authorization by email with the following information:

  1. name and surname,
  2. registration number,
  3. date of the exam,
  4. name of the exam,
  5. mark received.

It is possible to see the exam by appointment with the teacher by sending an email to: edoardo.mollona@unibo.it.

Teaching tools

Students prepare the exam on the refernced book and by using the slides of the lectures, which are available on the teacher's website.

Office hours

See the website of Edoardo Mollona