Ateneo - UPO

The course introduces the concepts and tools of modern industrial organization, with particular attention to the strategic analysis of interactions among firms and between firms and consumers. The main market structures and the behavior of non-competitive firms will be analyzed, also using the tools provided by game theory.

1) L. Pepall, D. Richards, G. Norman e G. Calzolari; Organizzazione industriale; McGraw-Hill; fourth edition. Ch. 3 4 5 6 7 8 9 10. 2) The Core L'economia Il Mulino 2018 disponibile in open access al link https://www.core-econ.org/the-economy/it/ Ch. 3 7

The aim of the course is to provide students with a general knowledge of modern industrial organization based on the strategic interaction between firms and consumers. By the end of the course, students will understand how markets work by analyzing the behavior of competitive and non-competitive firms, also through the tools of modern game theory.

Pareto efficiency; equilibrium price and quantity in monopoly and perfect competition markets; consumer and producer surplus in monopoly and perfect competition markets.

Lectures and exercises during classes

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-learningdisabilities 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.

A written exam (60 minutes) will be held at the end of the course. The written test aims to assess the theoretical knowledge acquired and consists of three open questions. For students who achieve a passing grade in the written exam, an optional oral exam is available as an integration to the evaluation. The outcome of the oral exam may either increase or decrease the grade obtained in the written exam.

Consumer utility maximization; firm profit maximization; market structure and market power; price discrimination; product differentiation; static models of oligopoly: the Cournot model and its variations; the Bertrand duopoly model and its extensions; dynamic games: the Stackelberg model.

The intended learning outcomes at a minimum level of proficiency are: - Ability to describe the main market structures (perfect competition, monopoly, oligopoly) and their functioning. - Ability to recognize situations of strategic interaction between firms and consumers. - Ability to identify the distinguishing features of static and dynamic oligopoly models. - Ability to apply the concepts of price discrimination and product differentiation to concrete examples. At an intermediate/advanced level, students are expected to achieve: - Ability to represent mathematically a problem of profit or utility maximization. - Ability to translate and represent in terms of game theory a situation of strategic interaction between firms or between firms and consumers. - Ability to interpret equilibria in the Cournot, Bertrand, and Stackelberg models, including cases with variations from the basic formulation. - Ability to appropriately use concepts of market power, surplus, and welfare to evaluate competitive and non-competitive scenarios. - Ability to clearly present logical steps and arguments in support of their conclusions.