Industrial Organisation

ECTS : 6

Description du contenu de l'enseignement :

Course description and objectives
Industrial organization is the study of industry and firm behavior. Using the basic tools of microeconomic theory and game theory, this course will focus on the analysis of imperfectly competitive markets (monopoly and oligopoly). We shall first explore the relationships among firms in an industry by examining the nature of strategic interaction among them. We shall then analyze the strategies and methods that the firms use to preserve their monopolistic positions (deterring entry into an industry or driving rivals out of an industry), and examine the outcomes they produce. The last part of the course will deal with dynamic aspects of competition that represent critical issues in high technology and information technology industries: innovation and persistence of market dominance, network externalities and strategies in standardization.
During the lectures the students will discuss some examples/mini case studies, to learn how economic concepts have been used in real world business and legal settings.
 
Objectives: Students will be guided to understand both the theoretical and the empirical aspects of modern Industrial Organization.  Their active participation through the mini-case studies discussion will help achieving these objectives.

Course structure

1. Perfect Competition, Welfare
2.  Technologies and Costs
3.  Monopoly
4.  Regulated Monopolies
5.  Oligopoly: Cournot Competition
6.  Oligopoly: Bertrand Competition
7. Practice Session: Case Studies
8.  Collusion
9.  Research and Development
10.  Advertising
11.  Practice Session: Case Studies
12. Final Exam

Compétence à acquérir :

Learning outcomes
Basic methods of quantitative Industrial organization and game theory
Description of a market
Strategic interaction of market players
Basic notions of dynamic competition
Discussion of case studies

Mode de contrôle des connaissances :

Assignments and grading

• Oral presentation (50%)
• written exam (50%)

Bibliographie, lectures recommandées :

Bibliography

• L. Cabral (2017), Introduction to Industrial Organization, MIT Press.
• Pepall L., D. Richards and G. Norman (2008), Industrial Organization, Contemporary Theory and Empirical Applications, Fourth Edition, Blackwell Publishing
• Selected readings from Tirole J., The theory of industrial organization (1988), MIT Press