Ateneo - UPO

This module investigates the nature of competition and competition policy from a theoretical and applied policy perspective. The focus is on the behaviour of firms and consumers within markets of various types, including multi-sided ones.

The module draws from different sources and does not follow a book. Having said that, the module’s main and recommended course text is:
• Cabral, L., 2000, Introduction to industrial organization, The MIT Press (Second edition, 2017).

The following readings are frequently referred to in the further textbook reading for lectures.
• Lipczynski, J., Wilson, J. and J. Goddard, 2013, Industrial organization: competition, strategy, policy, Pearson, Fourth Edition.
• Martin, S., 2010, Industrial Organization in Context, Oxford University Press.
• Motta, M., 2004, Competition policy: theory and practice, Cambridge University Press.
• Waldman D.E. and E.J. Jensen, 2014, Industrial Organization Theory and Practice, Pearson New International Edition, Fourth Edition.

Development of the command of appropriate economic theory. To be able to show field applications of the academic material.

Microeconomics

Lectures
Problem sets' discussion

Historical, geographic and literary insights.

Written test with two to four questions with a certain number of sub-questions. These can be theoretical questions and/or exercises.

The exam is considered passed with a minimum of 18 points. Passing the written exam implies passing the module. There is no oral exam.

Introduction to Competition Policy
Problematic markets
Monopoly power and regulation
Price discrimination and bundling.
Game theory
Traditional models of oligopoly
Product differentiation, switching costs and advertising
Strategic behaviour and barriers to entry
Collusion and cartel enforcement
Horizontal mergers
Vertical relations between buyers and suppliers
Network effects

By the end of this module, you should be:

• Knowledgeable on the different ways of modelling market competition and how these models are tailored to different markets and problems;
• Aware of the role of strategic interactions;
• Familiar with the main concepts and intellectual debates in the theory of competition;
• Able to understand and critically appraise competition policy cases;
• Able to understand and summarize main competition policy cases.