INDUSTRIAL ORGANIZATION

This class provides basic knowledge on the workings of non competitive markets.

At the end of the class, the student will understand the fundamental models describing firms' behavior under monopolistic and oligopolistic market structure

Requirements: Economics http://www.unive.it/pag/203

• Introduction: [Week 1]
– Market Structure and Market Power; – Basic Microeconomics;
– Game Theory.
• Monopoly and Price Discrimination: [Week 1]
• Oligopoly: [Week 2]
– Bertrand competition;
– Cournot competition;
– Stackelberg competition.
• Collusion: [Week 3]
– Repeated games;
– forward induction.
• Product Differentiation: [Week 4]
– Vertical and horizontal differentiation; – Hotelling model.
• Entry: [Week 4]
– Entry cost;
– Entry deterrence; – Predatory prices.
• Social Networks: [Week 5]
– Network effects;
– Word-of-Mouth communication;
– Centralities, Targeting, and Pricing.

The main material are slides and exercises provided by the lecturer.

The reference books are:

- Tirole, J. (1988). The Theory of Industrial Organization: Jean Tirole. MIT press.
- L. Cabral, Industrial Organization, second edition, The MIT Press, 2017

Written exam, weekly problem sets

Lectures, group discussions, flipped classroom

English

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written