INDUSTRIAL ECONOMICS

This course provides an introductory analysis of imperfectly competitive markets through formal models of firms’ strategies and of the way the latter interact to determine market results.
Within the curricular activities of the degree in Economia e Commercio, this second year course completes what students learnt in the first year course in Microeconomics, by extending the study of the way markets function to the case of imperfect competition.

1. Knowledge and understanding:
At the end of the course the student should know the most important models of oligopolistic markets both, both from a static and a dynamic point of view and to evaluate their implications in terms of social welfare.

2. Ability to apply knowledge and understanding:
At the end of the course the student should be able to identify and explain which factors determine firms’ market power in oligopolistic markets and to predict how the functioning of these markets is influenced by policy issues and by firms’ strategies.

3. Ability to make judgments:
At the end of the course the student should be able to apply the to use the knowledge gained during the course to:
a) model simple economic situations, apply mathematical techniques to solve them, and interpret the answers intuitively,
b) discuss case-studies taken from the news,
c) critically compare different models of oligopoly and discuss the relevance of their results.

Microeconomics, see for more details http://www.unive.it/pag/203/

1. Price discrimination and bundling
2. Quantity competition and the Cournot model
3. Price competition and the Bertrand model. Capacity constraints
4. Product differentiation and the Hotelling model
5. Collusion
6. Strategic entry deterrence
7. Vertical relations
8. Networks goods

(Part 8 will be covered depending on time's availability)
A detailed syllabus in available on the course website on Moodle.

The main textbook for the course is Pepall et al, Organizzazione Industriale, McGraw-Hill. The book is at third edition (2017) but the use of this version is not compulsory. Among the different editions there could be discrepancies (for example in the numbering of the exercises) that can easily be overcome by paying sufficient attention.

Other valid textbooks are:

Carlton, Perloff, Organizzazione Industriale, McGraw-Hill;
Cabral, Economia industriale, Carocci;

These textbooks can be useful for deepening your knowledge or for having a different illustration of the concepts presented in class.

The exam is written and lasts 60 minutes.

The test includes multiple choice questions and open questions or exercises of a quantitative and theoretical nature. The exam is considered passed if the grade is at least 18. During the exam it is forbidden to use books, notes, telephones and any other electronic device, except for the calculator. It is not possible to take an oral exam. The exam assesses the knowledge and understanding of course content and the student's ability to use the concepts presented in the course.

Students are invited to contact the course responsible during the first two weeks of the course for clarifications concerning the exam.

Lectures and individual study.

An active lectures' attendance is warmly recommended. An active attendance implies the reading of the book chapters (to be presented in class) before the classes and the independent handling of the exercises suggested by the course responsible.

Note that the exercises are an integral part of the preparation. In this respect, in addition to those indicated by the course responsible, exercises on the course topics can be found in C. Garavaglia. Economia industriale: esercizi e applicazioni, Carocci.

The detailed programme for the exam and all the mandatory supplementary material will be made available during the course through the Moodle area accessible from the lecturer's web page.

written