02528 - Industrial Economics

Learning outcomes

The student will learn the principles of Industrial Organization analysis. The course will focus on the behaviour of firms and consumers, also using Game-Theory based models of interaction. By the end of the course, the students will be able to: analyze the main features of a market; assess the effects of industrial and competition policies.

Course contents

MODULE 1

1) Basic concepts.

• Introduction.
• Some useful microeconomic ideas.
• Fundamental Theorems of Welfare Economics.
• Public goods and Externalities.
• 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.

MODULE 2

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.

C. Garavaglia, Economia industriale: esercizi e applicazioni, Carocci, Nuova edizione

Teaching methods

Lectures.

Assessment methods

Written exam: 9 multiple-choice questions, 4 open-ended questions, 3 exercises (90 minutes).

Teaching tools

Slides

Office hours

See the website of Emanuela Randon

See the website of Francesco Angelini