Advanced Industrial Organization
A.Y. 2023/2024
Learning objectives
The goal of the course is to present students with key concepts and tools on the evolution of the firm and the market. By combining theory and practice, the course will cover the major areas of advanced industrial organization such as markets' concentration, entry decisions, diversification and impact of economies of scale. A section of the course will be devoted to the deployment of quantitative methods. Guest lectures with entrepreneurs, managers and consultants will provide students with practical examples to connect them with the job market.
Expected learning outcomes
At the end of the course students will know the main theoretical and applied approaches to the analysis of different market structures. The focus will be, in particular on oligopolistic markets, that is the prevailing market structure in the real world.
The students will also acquire knowledge about the evolution of different markets, with particular reference to the manufacturing sector. Additionally, they will be able to delve into the relationship between market structure and innovation. In this regard, they will learn how structure affects innovation, as well as the reverse causality hypothesis, that is how innovation affect the evolution of market structure across different contexts.
The students will also acquire knowledge about the evolution of different markets, with particular reference to the manufacturing sector. Additionally, they will be able to delve into the relationship between market structure and innovation. In this regard, they will learn how structure affects innovation, as well as the reverse causality hypothesis, that is how innovation affect the evolution of market structure across different contexts.
Lesson period: First trimester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
First trimester
Course syllabus
Different topics will be studied during the course:
1) What is industrial Organization?
2)Basic Microeconimcs: monopoly versus perfect competition
3) market structure and market power: indicators of concentration and market identification
4) economies of scale and economies of scope
5) monopoly power
6) First degree price discrimination
7) Third degree price discrimination
8) Second degree price discrimination
9) oligopoly : Cournot model with homogenous and differentiated products
10) oligopoly : Bertrand model with homogenous and differentiated products
11) oligopoly Stackelberg model
12) entry deterrence: limit pricing (Sylos Labini model)
13) entry deterrence : Spence- Dixit model
14) Research and Development, what is?
15) which is the best market structure to increase innovation?
16) Arrow model for innovation
17 ) Schumpeter approach
18) How does the research change the market structure? Shaked and Sutton model
19)The Sutton model (1991) and the Sutton model 1998 Technology amd market structure.
20) The new industrial policies: recent challenges.
1) What is industrial Organization?
2)Basic Microeconimcs: monopoly versus perfect competition
3) market structure and market power: indicators of concentration and market identification
4) economies of scale and economies of scope
5) monopoly power
6) First degree price discrimination
7) Third degree price discrimination
8) Second degree price discrimination
9) oligopoly : Cournot model with homogenous and differentiated products
10) oligopoly : Bertrand model with homogenous and differentiated products
11) oligopoly Stackelberg model
12) entry deterrence: limit pricing (Sylos Labini model)
13) entry deterrence : Spence- Dixit model
14) Research and Development, what is?
15) which is the best market structure to increase innovation?
16) Arrow model for innovation
17 ) Schumpeter approach
18) How does the research change the market structure? Shaked and Sutton model
19)The Sutton model (1991) and the Sutton model 1998 Technology amd market structure.
20) The new industrial policies: recent challenges.
Prerequisites for admission
basic microeconomics, basic elements of mathematics
Teaching methods
Frontal lectures
Teaching Resources
Industrial Organization: Contemporary Theory and Empirical Application
Authors: Lyne Pepall, Dan Richards, George Norman, John Wiley & Sons
slides on the Ariel website and additonal papers suggested during the lectures
Authors: Lyne Pepall, Dan Richards, George Norman, John Wiley & Sons
slides on the Ariel website and additonal papers suggested during the lectures
Assessment methods and Criteria
At the end of the course the students should know different market structures from both a theoretical point of view and an empirical point of view. The focus of the course is on markets structure and evolutions. The study of innovation in different market will play an important role.
The student should understand how these aspects are interrelated with changes in the real world: digital transformation and green transformation. Th role of competition policies and industrial policies: no longer in opposition. There will be a final written examination with multiple choices: exercises and theoretical questions. The students can increase the final score with an optional group work.
The student should understand how these aspects are interrelated with changes in the real world: digital transformation and green transformation. Th role of competition policies and industrial policies: no longer in opposition. There will be a final written examination with multiple choices: exercises and theoretical questions. The students can increase the final score with an optional group work.
SECS-P/06 - APPLIED ECONOMICS - University credits: 6
Lessons: 40 hours
Professor:
Giorgetti Maria Letizia
Educational website(s)
Professor(s)
Reception:
11.30 a.m-13.30 a.m.,Thursday
aula 9- 2° piano via Conservatorio, 7