Ateneo - UPO

The course aims to introduce students to the microeconomic theory of noncompetitive markets. In the first part of the course, after delving into the extreme cases of monopoly and perfect competition--topics already covered in standard microeconomics courses--the intermediate case of oligopolistic markets will be analyzed, with special emphasis on the strategic interaction between firms with regard to price, product and entry/exit choices in a market.

Cabral L., Economia industriale, Roma, Carocci (testo di riferimento, capp. 1-12; 14 e 15).
Garavaglia C., Economia industriale: esercizi e applicazioni, Roma, Carocci (eserciziario).
Frank, H. MICROECONOMIA – Università degli Studi del Piemonte Orientale, McGraw-Hill Higher Education (testo base di microeconomia di riferimento).

The student is expected to acquire the skills necessary to understand the fundamental mechanisms operating in competitive environments, especially in the case of non-competitive markets characterized by strategic interaction among firms. In particular, with regard to their choices regarding price, quantities produced, quality and variety of goods, geographic location, decisions to integrate and to enter and exit a market, also taking into account any institutional constraints and the characteristics of demand from potential buyers. Once acquired, these skills can then be usefully employed by the student in multiple decision-making contexts, in order to make informed choices, using a methodologically rigorous approach, based on the ability to critically analyze the competitive environment and strategic interaction in which the firm operates and the ability to identify and consider all relevant aspects.

Superamento obbligatorio dell’esame di Economia Politica, che, da Regolamento CLEA, è propedeutico a Economia Industriale. Consigliato il superamento anche dell’esame di Politica Economica e Scienza delle Finanze.

The course consists of lectures, discussions and exercises. Attendance is optional but recommended.

The exam is written, and consists of open questions both theoretical and in the form of numerical exercises. The exam may be repeated a maximum of 3 times in a year. Any withdrawals are not included in this count.

Theory of monopolistic and oligopolistic markets
- The Industrial Economy: the fundamental problems
- Recalls of microeconomics
- Perfect competition and monopolistic competition
- Monopolistic markets:
- Market power and social welfare
- Natural monopoly and regulation
- Price discrimination
- Vertical relationships between firms
- Oligopolistic markets:
- Introduction to noncooperative game theory
- Bertrand's paradox
- Overcoming paradox I: capacity constraints, product differentiation
- Overcoming paradox II: dynamic interaction and collusion
- Concentration and market power
- Entry strategies and barriers to entry

The skills acquired can then be usefully employed by the student in multiple decision-making contexts, to make informed choices, using a methodologically rigorous approach, based on the ability to critically analyze the competitive environment and strategic interaction in which the company operates and the ability to identify and consider all relevant aspects.