INDUSTRIAL ORGANIZATION

The course provides basic knowledge of the functioning of imperfectly competitive markets by analyzing formal models of the strategies adopted by firms operating in these markets.

Within the curricular activities of the degree in Economics and Commerce, this second-year course builds upon the competencies acquired in the first-year Microeconomics course, extending the understanding of market functioning to those characterized by 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.

Mandatory prerequisites: Microeconomics, see for more details https://www.unive.it/data/course/576711

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

The recommended textbook is Pepall et al., Industrial Organization, McGraw-Hill. The book is currently in its fourth edition (2023), but using this specific version is not mandatory. There may be some discrepancies between different editions, such as variations in exercise numbering, which can be easily managed with sufficient attention.

If needed, additional teaching materials, such as articles, videos, slides, and other useful resources, will be provided during lectures.

The exam is in written form and lasts 60 minutes. During the test, the use of books, notes, phones, or any other electronic devices is prohibited, except for a calculator. It is not possible to take the exam in oral form.

written

The exam covers a selection of topics addressed during the course.

The assessment is divided into two parts: the first consists of multiple-choice and/or true/false questions, with no penalties for incorrect answers; the second includes at least one exercise similar to those carried out during the practice sessions, incorporating both theoretical analysis and numerical calculations.

The exam is considered passed with a minimum score of 18/30.

The purpose of the exam is to assess the achievement of the expected learning outcomes, as described in the previous sections of this syllabus. Specifically, it evaluates students' knowledge and understanding of the course content, as well as their ability to apply these concepts to analyze firm behavior in monopolistic and oligopolistic markets and assess their implications for social welfare and regulation.

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.

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Ca' Foscari abides by Italian Law (Law 17/1999; Law 170/2010) regarding support services and accommodation available to students with disabilities. This includes students with mobility, visual, hearing and other disabilities (Law 17/1999), and specific learning impairments (Law 170/2010). If you have a disability or impairment that requires accommodations (i.e., alternate testing, readers, note takers or interpreters) please contact the Disability and Accessibility Offices in Student Services: disabilita@unive.it.