Industrial Organization
Objectives
A. Knowledge and Understanding
Students should master the main models used IO from a game-theoretic viewpoint.
B. Subject-Specific Skills
Students should develop their understanding of how markets operate.
C. General Skills
Students should develop their analytical skills.
General characterization
Code
1112
Credits
7.5
Responsible teacher
Vasco Santos
Hours
Weekly - Available soon
Total - Available soon
Teaching language
English
Prerequisites
Mandatory precedence: 1100. Introduction to Microeconomics
Bibliography
Cabral Luís, 1994, Economia Industrial, Lisbon: McGraw-Hill.
Cabral Luís, 2000, Introduction to Industrial Organization, Boston, MA: The MIT Press.
Ivaldi Marc, Bruno Jullien, Patrick Rey, Paul Seabright and Jean Tirole, 2003, “The Economics of Tacit Collusion”, Final report for DG Competition, European Commission.
Barros Pedro Pita, 1998, Exercícios de Economia Industrial, Lisbon: McGraw-Hill.
Carlton Dennis and Jeffrey Perloff, 2003, Modern Industrial Organization, 4th. edition, London: Addison-Wesley.
Belleflamme Paul and Martin Peitz, 2015, Industrial Organization: Markets and Strategies, 2nd edition, Cambridge, UK: Cambridge University.
Teaching method
Formal lectures followed by practical classes. In addition, students are provided with plentiful material to practice.
Evaluation method
Regular Exam Period:
Continuous assessment elements (and their weights), Midterm (40%). Final exam (and their weighting): Final exam (60%).
Resit Exam Period:
Continuous assessment (and their weights) if different than 100%: Midterm (0% or 40%). Final exam (and its weight): Final exam (60% or 100%).
Grade Improvement in Regular Period:
Continuous assessment (and their weights) if different from 100%: Midterm (0% or 40%). Final exam (and its weight): Final exam (60% or 100%).
Grade Improvement in Resit Period:
Continuous assessment (and their weights) if different than 100%: Midterm (0% or 40%). Final exam (and their weighting): Final exam (60% or 100%).
Subject matter
Market structure: extent of a market, concentration and volatility measures. Oligopoly models: dominant firm and monopolistic competition; Bertrand, Cournot and Stackelberg; dynamic models. Market power: collusion (static and dynamic analyses). Barriers to entry: scale economies, strategic behavior; entry and welfare. Mergers and acquisitions: horizontal mergers, vertical integration. Price discrimination: definitions and examples.