Economics of Industrial Organisation, photo: Pete Linforth
Upon successful completion of the course students will:
Upon successful completion of the course students will have the following abilities:
Introduction: Markets and industries taxonomy, The SCP paradigm, the endogeneity issue, Chicago Approach, Loss of social welfare, Firms Objectives, Types of Firms
Games and Strategy: Dominant Strategies, Dominated Strategies, Nash Equilibrium, Strategic form, Incomplete information, Dynamic games, Trees, Backward solution, solution refinement, repeated games
Concentration and Market Power, Oligopoly: Bertrand Model, Cournot Oligopoly, Stackelberg model, Model of conjectural variations. Empirical estimation of concentration and market power Static measures of concentration, Dynamic concentration, Basic elements of collusive behavior
Entry, Exit and Industrial Dynamics: Entry costs and market structure, Endogenous and exogenous entry cost, barriers to entry, static and structural, economies of scale and MES, Economies of Scope, Contestable markets, Mergers and Acquisitions, Routinized and Entrepreneurial Technological regimes, empirics of entry and exit.
Business Practices-Pricing: Price discrimination of first, second and third order, restrictive entry pricing, predatory pricing, non-linear pricing, vertical relationships, retailers competition, double optimization, investment externalities
Business Practices – Product differentiation: Chamberlin model, Hotelling model, horizontal and vertical differentiation, Product proliferation, Brand name and customers loyalty
Business Practices – Advertising: Information, persuasion and marking, advertising intensity, Dorfman-Steiner model, social benefit and advertising cost, convenient and non-convenient goods, Porter’s approach and the role of retailers
Business Practices – R&D and innovation: The Shumpeterian hypotheses, The role of firm size and market structure, Opportunity and appropriability, systems of patents, diffusion models, networks and externalities, market pull and demand push hypotheses
Business Performance and Growth: Performance measures, measures of structure, SCP econometric models, Gibrat law, extended versions of Gibrat law
Lectures (3 hours per week)
|
Activity |
Semester workload |
|
Lectures |
39 hours (3 hours*13 weeks) |
|
Work at home |
111 hours |
|
Total number of hours for the Course (25 hours of work-load per ECTS credit) |
150 hours (total student work-load) |
Written examination at the end of the semester based which includes:
ICT in teaching and communication with students (e-class)
