30L201 :Industrial Economics

General info

Instruction language English
Type of Instruction Interactive lectures, instruction lectures, and tutorials (Lecture schedule)
Type of exams Written exam, group assignments, and classroom participation (Examination schedule)
Level:Bachelor
Course load:6 ECTS credits
Registration:Blackboard
Blackboard Infonot available in Blackboard

Lecturer(s)


dr. F. Schütt (Coordinator)

Dr E. Freddi

L. Chiappini (TA)

M. Bonani (TA)


Objectives

How do firms price and position their products when facing competition from a small number of other firms? How do firms decide whether to enter a market, and how much do they invest in quality, advertising, and R&D? Does laissez-faire lead to socially desirable outcomes? If not, how can the government intervene to improve market outcomes? These and other questions will be addressed by this course. We study strategic interaction among firms in markets characterized by imperfect competition, so that each firm has market power. The aim is to provide the students with up-to-date knowledge about the essential issues in the field of industrial organization, and to equip the students with a consistent toolkit for analyzing and understanding these issues. The course blends the standard theoretical approach, viewing the firm as a rational decision maker, with empirical studies, and also gives students a taste of the strategic decisions firms face by means of classroom experiments.


Contents

The topics to be covered in this course include:

Part 1

Competitive behavior in oligopoly * Product differentiation and location choice * Cartels and collusion * Price discrimination * Advertising

Part 2

Market structure: entry and exit * Mergers and acquisitions * Vertical relations * Entry deterrence * Innovation and technological change * Networks and standards


Specifics

This course is reserved exclusively for students in the BSc Economics program and cannot be chosen as an elective by students from other programs.


Compulsory Reading

  1. Luis M.B. Cabral, Introduction to Industrial Organization (2nd edition), MIT Press, 2017, ISBN 9780262035941.


Recommended Prerequisites

Basic knowledge of micro-economics and calculus


Compulsory for


Recommended option for

(05-jan-2018)