INDUSTRIAL ORGANIZATION

The course aims to provide a foundational understanding of the functioning of imperfectly competitive markets, through the analysis of formal models of the strategies adopted by firms operating within such contexts.

Within the degree programme in Economics and Business, this second-year course builds upon the knowledge acquired in the first-year course in Microeconomics, extending students’ understanding of market functioning to include contexts characterised by imperfect competition.

1. Knowledge and understanding:
Upon completion of the course, students will be able to understand the main models analysing firms’ behaviour in monopolistic and oligopolistic markets, from both a static and a dynamic perspective, and to assess their implications in terms of social welfare.

2. Applying knowledge and understanding:
Upon completion of the course, students will be able to identify and explain the factors determining firms’ market power in oligopolistic markets, as well as to predict how the functioning of such markets is influenced by policy instruments and firms’ strategic choices.

3. Making judgements:
Upon completion of the course, students will be able to apply the knowledge acquired in order to:
a) represent simple economic scenarios, identify their solutions, and understand their practical implications;
b) discuss real-world cases drawn from the press or current affairs;
c) critically compare different oligopoly models and discuss the scope of applicability of their results.

Mandatory prerequisites: Microeconomics. For further details, please refer to the following link: https://www.unive.it/web/it/1234/esami

1. Price discrimination and bundling strategies
2. Quantity competition and the Cournot model
3. Price competition and the Bertrand model. Capacity constraints
4. Product differentiation and the Hotelling model
5. Collusive agreements
6. Strategic entry deterrence
7. Vertical relationships

The recommended textbook is Pepall et al., Industrial Organization, McGraw-Hill. The book is currently available in its fourth edition (2023), although the use of this specific edition is not mandatory. Differences across editions may arise, for instance in the numbering of exercises, but these can be readily managed with appropriate care.

Where necessary, references to additional teaching materials, such as articles, videos, slides, and other useful resources, will be provided during the lectures.

The examination is conducted in written form and has a duration of 60 minutes. During the examination, the use of books, notes, mobile phones, or any other electronic devices is strictly prohibited, with the exception of a calculator. No oral examination is provided.

written

The instructor is responsible for ensuring the authenticity and originality of all examinations and coursework. In cases of suspected academic misconduct, an additional on-site assessment may be required during the exams, which may differ from the standard format.

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

The assessment is structured in two parts: the first consists of multiple-choice and/or true/false questions; the second may include one or more exercises, similar to those carried out during tutorials, as well as open-ended questions, involving both theoretical analysis and numerical calculations.

The examination is considered passed with a minimum mark of 18/30.

The purpose of the assessment is to evaluate the extent to which the intended learning outcomes, as outlined in the preceding sections of this syllabus, have been achieved. In particular, it assesses students’ knowledge and understanding of the course content, as well as their ability to apply this knowledge to the analysis of firms’ behaviour in monopolistic and oligopolistic markets, with reference to the related implications for social welfare and regulation.

Lectures and independent study.

Active participation in lectures is strongly recommended. Active participation entails prior reading of the relevant textbook chapters before each lecture, as well as the independent completion of the exercises assigned by the instructor.

It should be noted that completing exercises constitutes an integral part of exam preparation. In this regard, in addition to those indicated by the instructor, further exercises on the course topics can be found in C. Garavaglia, Economia industriale: esercizi e applicazioni, Carocci.

Details of the examination syllabus and all mandatory supplementary materials will be made available during the course on the course Moodle platform, accessible via the instructor’s webpage.

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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.