INDUSTRIAL ORGANIZATION

LECTURERS:
Prof. Nicola Meccheri; Prof. Luciano Fanti; Prof.

Spring Semester
3 ECTS SECS-P/06

Course description:

This course surveys some major topics in the field of Industrial Organization (IO). It also serves as a foundation course to prepare the student for further study in the field of IO. The course focuses mainly upon the theory of the firm and the industry, with an emphasis upon oligopoly theory. Of special interest is firms’ strategic behavior including oligopoly pricing and production, product differentiation, strategic delegation and incentives, market entry, tacit collusion, vertical related structures, network effects and CSR. The effects of firms’ conduct on economic welfare and feedback effects on market structure are examined.

 

Competences and abilities to be acquired:

Acquired competencies and abilities will permit students to understand how price and non-price competition among firms, as well as strategic behavior in oligopolistic markets affect economic welfare and market structure. The knowledge that the student will derive from the course is useful to understand firm behavior and markets functioning, as well as to prepare the student for further study in IO.

 

Textbooks:

 

–          Shy O., Industrial Organization: Theory and Applications, Cambridge, MA: The MIT Press, 2001.

 

–          Tirole J., The Theory of Industrial Organization, Cambridge, MA: The MIT Press, 1988.

 

More information and further reading will be provided at the beginning of the course.

Prerequisites:

It is assumed that the student has taken a course of Microeconomics. The student should be comfortable with applying calculus and should have a rudimentary knowledge of game theory. For those who have not taken a course in game theory, we will provide a review of the most relevant concepts.

 

Teaching:

Frontal lectures, team works.

Final valuation:

The final exam will be written.