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. 2) The Core L'economia Il Mulino 2018 disponibile in open access al link https://www.core-econ.org/the-economy/it/

The course is worth 4 ECTS credits, corresponding to 30 hours of classroom teaching. Of these, approximately 20 hours consist of lectures and 10 hours of interactive teaching activities, although the balance between the two may vary across individual classes. 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.

Basic concepts of microeconomics: Pareto efficiency; equilibrium price and quantity under monopoly and perfect competition; consumer and producer surplus under monopoly and perfect competition.

Lectures aimed at presenting and discussing the topics included in the course syllabus, combining lectures and interactive teaching activities to encourage students' active participation and contributions, including through the use of the flipped classroom approach.

Students with disabilities, Specific Learning Disorders (DSA) or Special Educational Needs (BES) can request dedicated services and tools from the University's Staff for Career Development and Student Services, consulting the dedicated University webpage. After contacting the University Staff, they can contact the instructor in charge of the module regarding the specific examination arrangements.

Assessment of the module consists of a mandatory written examination and an optional oral examination. The written examination lasts 60 minutes, consists of three questions, and allows students to obtain a maximum mark of 26/30: one applied exercise (maximum score: 8 points) and two theoretical questions (maximum score: 9 points each), designed to assess:
• knowledge and understanding of the main theoretical models of industrial organization;
• the ability to apply knowledge and understanding of these models to economic analysis and to interpret the results.
To obtain a passing grade, students must demonstrate knowledge of the fundamental concepts covered in the course, the ability to apply the main theoretical models to standard economic problems, and the appropriate use of economic terminology.
Assessment criteria are as follows:
• Satisfactory (18–20/26): demonstrates knowledge of the fundamental concepts covered in the course and an essential understanding of the main theoretical models. The student is able to correctly answer the essential components of at least two of the three questions, while showing either only partial ability to apply the models or theoretical knowledge that is not yet fully consolidated.
• Good (21–24/26): demonstrates good knowledge and understanding of the topics covered in the course and a reliable ability to apply theoretical models to economic analysis. Responses to all three questions are generally correct, complete, and well argued.
• Excellent (25–26/26): demonstrates thorough knowledge of the course topics and a full ability to apply theoretical models to economic problems. Responses are correct, complete, and rigorous, supported by an appropriate economic interpretation of the results and by the ability to establish critical links across the different concepts covered in the course.

The oral examination is optional and may only be taken by students who have obtained a passing mark in the written examination. It consists of the discussion of either a short scientific paper or a topic not previously covered in class, chosen by the student from a list published on the course webpage. The oral examination is designed to assess communication skills, the ability to develop critical reasoning, to establish connections across the different topics covered in the integrated course, and to use appropriate economic terminology. It must be taken during the same examination session as the written examination and may increase the mark obtained in the written examination by up to 7 points, allowing students to achieve a final grade of up to 30/30 with honours.

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.

● Knowledge and understanding: describe the main market structures (perfect competition, monopoly, and oligopoly) and how they operate; recognize situations of strategic interaction between firms and consumers.
● Applying knowledge and understanding: identify the distinguishing features of static and dynamic oligopoly models; apply the concepts of price discrimination and product differentiation to concrete examples; represent a profit maximization or utility maximization problem in mathematical form; translate a situation of strategic interaction into the framework of game theory; interpret equilibrium outcomes in the Cournot, Bertrand, and Stackelberg models, including their variants.
● Communication skills: ability to present logical arguments, establish connections across different topics, and support conclusions with well-reasoned arguments.
● Learning skills: ability to use textbooks and other course materials independently to understand and solve standard problems. At an intermediate/advanced level, ability to independently deepen knowledge of topics not explicitly covered during the course.