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INDUSTRIAL ORGANIZATION

Program

EN IT

Updated A.Y. 2018-2019

See also File in Teaching Material

LECTURES


Background Reading Week 1 (6hrs)


Chp 1. What is 'Markets and Strategies'?
Chp 2. Firms, consumers and the market
Reading: Chp. 1,2.


Part II. Market Power


Chp 3. Static imperfect competition
3.1.1: Standard Bertrand Model
3.1.3: Price Competition with Differentiated Products
(Hotelling model and Salop model)


3.1.4 Asymmetric Competition with Differentiated Products
3.2.1 Cournot Competition
3.3.2. Differentiated products: Cournot vs Bertrand
3.4 Strategic substitutes vs strategic complements


Chp 4. Dynamic aspects of imperfect competition (review from Game Theory course)
Reading: Chp. 3.1.1; 3.1.3; 3.1.4; 3.2.1;3.3.2: 3.3.3;3.4; 4.1.1
Week 2 (6hrs)

Part III. Sources of Market Power
Chp 5. Product differentiation
5.2.1 A simple location model
5.2.3. The Quadratic Hotelling Model
5.3.1. Vertical product differentiation

Reading: Chp. 5.1.; 5-2-1; 5.2.3. 5.3.1.
Part VI. Theory of Competition Policy:

Chp 14. Cartels and tacit collusion:
14.1 Formation and stability of cartels
14. 2: Sustainability of Tacit Collusion
14.2.3 Collusion and multimarket contact
14.3: detecting and fighting collusion: leniency programs

Week 3 (6 hours)
Reading: Chp. 14.1.; 14.1.1; 14.2; 14.2.1; 14.2.2; 14.2.4 (simplified; see slides); 14.2.5 (simplified; see slides); 14.3.1; 14.3.2 (only leniency programs/no maths)

Chp 15. Horizontal mergers Week 4 (2 hours)
15.1 Profitability of simple Cournot Mergers
15.1.2: Mergers between several firms
15.1.3: Efficiency increasing mergers
15.2: Welfare Analysis of Cournot mergers
Reading: Chp. 15.1.1; 15.1.2; 15.1.3 (no maths); 15.2 (no maths)

Chp 16. Strategic incumbents and entry Week 4 (3 hours)

Chp 16.3 Strategies Affecting Demand variables:
Brand Proliferation
Bundling

16.4 Limit Pricing under Complete information
Reading: Chp. 16.3.; 16.3.1, 16.3.2; 16.4
Additional Reading
Appendix A. Game theory
Appendix B. Competition policy

ESSENTIAL READING
All above indicated Chapters in Paul Belleflamme ,and Peitz (2015)
 Belleflamme, Paul and Martin Peits, (2015) Universität Mannheim, Germany Industrial Organization Markets and Strategies, 2nd Edition Cambridge University Press
ADDITIONAL READING FOR VERY INTERESTED STUDENTS
 Motta Massimo (2014), Competition Policy: Theory and Practice, Cambridge University Press.
Book website: all slides and exercises here.
https://www.cambridge.org/it/acade