Industrial Economics

Recommended Prerequisites

Industrial Organization and English

Teaching Methods

Continuous evaluation based on  tests during the classes and on comments about papers.

Learning Outcomes

Further study of market functioning mechanisms and strategic interaction between firms and consequences in terms of Welfare and market power.

Students must be able to:

 

 (i)   Identify different classic oligopoly equilibrium with and without product differentiation

(ii)   Understand the nature of the absence of coincidence between free entry equilibrium number of firms and the socially optimum number of firms and its consequences in terms of economic regulation

(iii)  Understand firms’ different strategies for deterring entry and its consequences in terms of competition policy

(iv)  Relate the dynamic theory of oligopoly with the sustainability of tacit collusion in different competitive contexts

(v)   Find the way how market outcomes in differentiated product markets compare with socially desirable outcomes

Work Placement(s)

No

Syllabus

1. Oligopoly theory;

2. Strategic behaviour: investment in entry deterrence;

3. Tacit collusion (dynamic oligopoly theory);

4. Identifying and measuring market power;

5. Product differentiation..

Head Lecturer(s)

Carlos Manuel Gonçalves Carreira

Assessment Methods

Continuous Assessment
Comentário de artigos: 20.0%
2 tests: 80.0%

Final Assessment
Exam: 100.0%

Bibliography

BELLEFLAMME, Paul ; PEITZ, Marin – Industrial organization : markets and strategies. Cambridge : Cambridge University Press, 2010. [BP 658.8 BEL]

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

MARTIN, Stephen — Advanced industrial economics. 2nd ed.. Malden : Blackwell Publishers, 2002. [BP 338.45 MAR]

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

SHY, Oz — Industrial organization : theory and applications. Cambridge, Mass. : MIT Press, 1996. [BP 338.45 SHY]

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