75902 - Industrial economics

Learning outcomes

Course contents

The aim of this course is to provide students the ability to gain insight into the firm's strategic behaviour, and how this interacts with public policy issues such as anti-trust, regulation, technology and environment. In particular, the course will focus on the complexity of industrial policies, focusing on aspects that are of particular importance for business. The course content is as follows:

-           Monopoly Power,

-           Game Theory, Oligopoly, and Strategic Interaction

-           Anticompetitive strategies

-           Contractual Relations between firms

-           Competition policy

-           Innovation and Technology policy

 

Regular attendance and active class participation are essential for a successful performance in this course.

 

Course Outline

I. Monopoly Power

·         Price discrimination and monopoly: linear prices.

·         Price discrimination and monopoly: non linear prices.

·         Product Complementarity and the Cournot Effect.

·         Groupon (Groupon, 2012, by Gupta, Weaver, Rood, Harvard Business Review)

·         Product variety and quality.

 

II. Game Theory, Oligopoly, and Strategic Interaction

·         Static Games and Cournot competition.

·         Price competition.

·         Dynamic games: first and second move.

 

III. Anticompetitive strategies

·         Limit price and entry deterrence.

·         Predatory behaviour: recent developments.

·         Repeated games and cartel formation.

 

IV. Contractual relations between firms

·         Horizontal and vertical mergers.

·         Vertical price restraints.

 

V. Innovative activity and network externality

·         Advertising, market power, information.

·        R&D (Research and Development) and patents.

Readings/Bibliography

Volume Create“Economia Industriale e Politiche per la Concorrenza”, McGraw-Hill (new version, 2015)

The textbook is available in the following bookstores:

Libreria Bookstop, Via Marsala 27/B

LEUP Libreria Patron, Piazza Verdi 4

Libreria Tinarelli, Via Belmeloro 1/b

Teaching methods

Regular attendance and active class participation are essential for a successful performance in this course.

Assessment methods

Procedure for Comprehensive Exam

The exam will be only in written format and will consist of three questions, each of them worthy 10 points. Participants will not be granted the possibility to integrate/substitute marks with oral examinations.

Further detailed information on the written exam will be given throughout the course. It is highly recommended that participants attend all lessons in order to successfully prepare for the exam which will be based on materials, exercises and discussions carried out in class.

 

 

Additional exam rules

 

-          Students are required to register for the exam by using the online application procedure.

-          Students cannot refuse a positive mark. Each mark higher than 18/30 will automatically be registered by the instructor.

Teaching tools

      20 lessons (60 hours).

Links to further information

http://andreamantovani0.wixsite.com/mysite/university-of-bologna

Office hours

See the website of Andrea Mantovani