Ateneo - UPO

The aim of the course is to provide the tools to understand the functioning of markets and industrial sectors, in particular the way in which firms compete with each other. Topics analyzed in standard microeconomics courses are examined in depth, with emphasis on the analysis of strategies of firms operating in different market structures. After discussing the extreme cases of monopoly and perfect competition, we will move on to the more general intermediate case of firms that interact in oligopolistic contexts, (with, possibly, specific reference to price choices, product differentiation and barriers to entry.

Luís Cabral, Economia industriale, Carrocci editore, any edition (textbook). Christian Garavaglia, Economia industriale: esercizi e applicazioni, Carocci editore (workbook). The teaching material (lecture notes) will be available on the Moodle-DIR web site.

1) Knowledge and understanding ability. Understanding the strategies used by firms that compete within different market structures in modern economic systems. 2) Capability to apply knowledge and understanding Being able to apply the theories developed by industrial economics to understand the functioning of markets in the real world. 3) Capability to approach the subject in a critical manner Use of economic analysis to discriminate among alternative models that help interpret the empirical evidence on the degree of competition among firms in different contexts. 4) Communication abilities Being able to understand the impact on social welfare of different firms’ behaviors and the economic policy of government aimed at limiting market power. 5) Learning ability Knowing the relevant literature on the economic analysis of non-competitive markets and the main evidence on market power and public policies of regulation and antitrust in different industrial sectors, in particular in Italy and in Europe.

None

Lectures (theory and exercises) with frequent interactions between teacher and students.
Course attendance is optional but strongly recommended.

Students with physical disabilities, Learning Disabilities or Special Education Needs can request specific services and tools via the Staff Sviluppo e Coordinamento Carriere e Servizi alle Studentesse e agli Studenti, consulting the University webpage: https://www.uniupo.it/en/services/servicesstudents-physical-or-learning-disabilities Students with disabilities, learning disabilities or special education needs, once they have contacted the University Staff, can refer to the tutor in charge of the course to define the examination modalities, concerning academic aspects.

The exam is written and consists of three parts (maximum score 11 for each one). Students are required to answer one open question on basic topics of the course, one exercise, and a set of short technical questions. It is possible to seat for this exam up to three times per year.

PART I: INTRODUCTION
The problems of industrial economics
Revision of basic microeconomics
The firm
Games and strategies

PART II: FROM MONOPOLY TO PERFECT COMPETITION
Monopoly and regulation
Perfect competition and monopolistic competition

PART III: OLIGOPOLY
Non-cooperative oligopolies
Collusive behaviour
Market structure and market power

At the end of the course students will be able to identify the strategies used by firms that compete within different market structures in modern economic systems.