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44763 - Teory of the Firm

Academic Year 2022/2023

                
                        Docente:
                        Emanuele Bacchiega
                    
                        Credits:
                        6
                    
                        SSD:
                        SECS-P/01
                    
                        Language:
                        Italian
                    
                        Moduli:
                        
                            Emanuele Bacchiega
                            (Modulo 1)
                        
                            Emanuele Bacchiega
                            (Modulo 2)
                        
                        Teaching Mode:
                        
                                    Traditional lectures (Modulo 1)
                                
                                    Traditional lectures (Modulo 2)
                                
                            Campus:
                            Bologna
                        
                            Corso:
                            First cycle degree programme (L) in
                            Information Science for Management (cod. 8014)

                            Teaching resources on Virtuale

Learning outcomes

Upon completion of the Course the student has gained a detailed knowledge of: Firm Theory (technology, costs, profit maximization) Industry boundaries and concentration. Pure and discriminating Monopoly Static and Dynamic Oligopoly.

Course contents

MODULE 1

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.

MODULE 2

4) Anticompetitive strategies.

Limit pricing and entry deterrence.
Predation: recent developments.
Collusion and repeated games.
Collusion: how to identify and fight it.

5) Non-price competition.

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

6) 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

Traditional Lectures

Assessment methods

Written, closed book, exam, with free-response questions. The maximum mark (all answers correct and complete, with an appropriate level of formalization) is 30 e lode.

Mark scale:

<18 Fail.

18-23 Pass.

24-27 Good.

28-30 Distinction.

30 e lode Great Distinction.

If online, the exams will be held on the EOL platform and will have the same structure.

Calculators are allowed.