Industrial Organisation

Recommended Prerequisites

Microeconomics and Mathematics.

Teaching Methods

Teaching methodology is based on theoretical and practical classes where students are supposed to have an active participation and solving some exercises.

Learning Outcomes

Overall objectives
The main objective is to understand market dynamics and structure as well as firm’s strategic interaction consequences in terms of market power, efficiency and welfare.

Specific objectives
We will present:
i) market structures and their determinants
ii) classic models of oligopoly
iii) firm’s policies
iv) firm’s strategic interaction and its consequences.

Generic competencies
The cognitive competencies that enable to:
i) understand imperfect competition market dynamics
ii) appreciate firm’s strategic interaction.

Specific competencies
The cognitive competencies that enable to:
i) evaluate the impact of market power in efficiency and welfare
ii) understand firm’s pricing in oligopolistic markets
iii) indentify firm’s anticompetitive strategies
iv) justify public policies against market power
v) identify firm´s policies of mergers, product differentiation and Research and Development.

Work Placement(s)

No

Syllabus

1. Introduction: market power and public policies.

2. Technology and market structure.

3. Game theory.

4. Oligopoly: Cournot, Bertrand, Stackelberg.

5. Collusion and cartels.

6. Horizontal and vertical mergers.

7. Entry barriers and strategic behaviour.

8. Product differentiation. Advertising.

9. Research and Development.Patents.

Head Lecturer(s)

Daniel Filipe Videira Murta

Assessment Methods

Continuous Assessment
Two tests - 80%, performance in the practical classes. - 20%. : 100.0%

Final Assessment
Exam: 100.0%

Bibliography

BARROS, Pedro Pita — Exercícios de economia industrial. Lisboa : Editora McGraw-Hill de Portugal, 1998. [BP 338.45 BAR]

CABRAL, Luís — Economia industrial. Lisboa : Editora McGraw-Hill de Portugal, 1994. [BP 338.45 CAB]

CARLTON, Dennis W. ; PERLOFF, Jeffrey M. — Modern industrial organization. 4th ed.. Boston : Pearson/Addison Wesley, 2005. [BP 338.45 CAR]

CHURCH, Jeffrey ; WARE, Roger — Industrial organization : a strategic approach. Boston : Irwin/McGraw-Hill, 2000. [BP 338.45 CHU]

MURTA, Daniel Filipe Videira - Organização industrial : sebenta prática. Coimbra : FEUC, 2010. [BP 338.45 MUR]

PEPALL, Lynne ; RICHARDS, Daniel J. ; NORMAN, George — Industrial organization : contemporary theory and empirical applications. 4th ed.. Malden : Wiley-Blackwell, 2008. [BP 338.45 PEP]

TIROLE, Jean — The theory of industrial organization. Cambridge, Mass. : MIT Press, 1994. [BP 338.45 TIR]