Syllabus
Updated A.Y. 2021-2022
LECTURES
Seminars: Assan Jallow. assan.jallow@uniroma2.it
Background Reading (from Game Theory part and economics courses)
Part I. Getting started week 1
Chp 1. What is 'Markets and Strategies'?
Chp 2. Firms, consumers and the market
Chp 3: 3.1.1: Standard Bertrand Model: review
3.1.3: Price competition with differentiated products
– Hotelling model
- Salop model
3.1.4: Asymmetric competition with differentiated products
3.2.1 Cournot Competition: review
3.4 Strategic substitutes vs strategic complements
Reading: Chp. 1,2. Chp. 3.1.1; 3.1.3; 3.1.4, 3.2.1;3.4;
Part III. Sources of Market Power week 1
Chp 5. Product differentiation
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: Week 2
Chp 14. Cartels and tacit collusion:
- 14. 2: Sustainability of Tacit Collusion
14.2.3 Collusion and multimarket contact
14.3: Detecting and fighting collusion: leniency programs
Reading: Chp. 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 3
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
Chp 16.3 Strategies Affecting Demand variables:
Brand Proliferation
Bundling
16.4 Limit Pricing under Complete information
Limit Pricing under Incomplete information
Reading: Chp. 16.3.; 16.3.1, 16.3.2 (no maths); 16.4
Chp 17. Vertically related markets Week 5
Chp 17 The double marginalization problem
Resale price maintenance
Exclusive dealing
Vertical mergers
Reading: Chp. 17.1.; 17.2, 17.4
Group Presentations/Assignment: TBA Week 6
Tutorials/Seminars: Numerical exercises
Additional Reading
Appendix A. Game theory
Appendix B. Competition policy
ESSENTIAL READING
All above indicated Chapters in Main Textbook
- 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.