Economics of Industrial Organisation

Economics of Industrial Organisation, photo: Pete Linforth

Course ID: 
ECO_401
Semester: 
Year of Study: 
Category: 
For Erasmus Students: 
No

Learning Outcomes

Upon successful completion of the course students will:

  • Understand  the core theoretical streams  within the field of the Economics of Industrial Organization
  • Know the basic measures of market concentration and be able to use appropriate methods for their estimation
  • Identify business policies that compose and support business strategies and goals
  • Evaluate the determining factors of business performance and growth
  • Know the key elements and components of industrial dynamics
  • Identify the role of market structure in promoting the  entrepreneurial mind
  • Analyze how both price and non-price competition between business entities affect economic welfare.

Upon successful completion of the course students will have the following abilities:

  • Analyze and evaluate models of competitive, oligopolistic and monopolistic markets
  • Ability to apply the knowledge and understanding acquired to the solution of problems related to Industrial Organization, and in particular to business development
  • Ability to interact with others in problem solving related to business strategies
  • Study skills needed for continuing professional development.

Course Contents

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

Teaching Activities

Lectures (3 hours per week)

Teaching Organization

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)

Assessment

Written examination at the end of the semester based which includes:

  • Questions of multiple choice type
  • Questions of short answer type
  • Comparative evaluation

Use of ICT

ICT in teaching and communication with students (e-class)

Course Info

Current Tutors

Instructor: 

Tsekouras Kostas

Professor
Tsekouras Kostas
Field of Expertise: 
Economics of Industrial Organisation, Economics of Innovation, Productivity & Efficiency Analysis
Organic Unit / Lab: 
Laboratory of Industrial, Innovation and Regional Economics
E-mail: 
Telephone: 
Office Hours: 
Friday 11:00 - 13:00

Reading List

Reading Recommendations: 
Carlton, D. W. and Perloff, J.M. Σύγχρονη Βιομηχανική Οργάνωση, Εκδόσεις Broken Hill Publishers, 2017. Επιμέλειας Μ. Βλάσσης, Ι. Παπαναγιώτου, Κ. Τσεκούρας (μετάφραση του D. Carlton and J. Perloff, Modern Industrial Organization, Pearson/Addison Wesley, Boston, 2005).
Cabral, Luis. Βιομηχανική Οργάνωση. Εκδόσεις Κριτική, Αθήνα, 2003. Επιμέλεια Ε. Λουρή-Δενδρινού (μετάφραση του L. Cabral, Introduction to Industrial Organization, MIT Press, Cambridge, 2000).
Waldman, Don, E. και Jensen, Elizabeth. Βιομηχανική Οργάνωση - Θεωρία και Πράξη. Εκδόσεις Έλλην, Αθήνα, 2006. Επιμέλεια Ι Χασσιδ και Ε. Φαφαλιού (μετάφραση από το Waldman, Don, E. και Jensen, Elizabeth, Industrial Organization – Theory and Practice, Addison Wesley Longman Inc./Pearson, NY, 2001).