2025
Industrial Organization
Name: Industrial Organization
Code: ECN13663M
6 ECTS
Duration: 15 weeks/156 hours
Scientific Area:
Economy
Teaching languages: Portuguese
Languages of tutoring support: Portuguese
Sustainable Development Goals
Learning Goals
The purpose of this course is to prepare student to use the tools and analytical techniques necessary for the study of imperfectly competitive markets (monopoly and oligopoly). By the end of the semester the student must:
- to understand the different market structures
- to know how to formalize and solve models of strategic interaction between firms, using game theory
- to understand models of horizontal and vertical product differentiation and advertising models
- to understand the use of the various types of price discrimination strategies and know how they depend on the information available
- to understand repeated interaction models and collusive behaviour among firms between
- to know how to apply the theory to real cases and, in particular, to analyse regulatory decisions
In terms of skills, this course aims to develop the ability of doing formal reasoning and the students analytical skills.
- to understand the different market structures
- to know how to formalize and solve models of strategic interaction between firms, using game theory
- to understand models of horizontal and vertical product differentiation and advertising models
- to understand the use of the various types of price discrimination strategies and know how they depend on the information available
- to understand repeated interaction models and collusive behaviour among firms between
- to know how to apply the theory to real cases and, in particular, to analyse regulatory decisions
In terms of skills, this course aims to develop the ability of doing formal reasoning and the students analytical skills.
Contents
1. Market and Market Structures
1.1. The different market structures
1.2. Review of the perfect competition model
1.3. Review of the monopoly model
1.4. Market definition and concentration measures
2. Models of Oligopoly
2.1. Quantity competition
2.2. Price competition
2.3. Price competition with capacity constraints
2.4. Sequential decisions
2.5. Models with free entry
3. Product Differentiation and Advertising
3.1. horizontal differentiation models
3.2. vertical differentiation models
3.3. Advertising
4. Segmentation and Price Discrimination
4.1. The various types of price discrimination
4.2. price discrimination monopoly
4.3. price discrimination in oligopoly
5. Competition Regulation
5.1. Competition policy
5.2. Repeated interaction and collusion
5.3. Mergers between competing firms
5.4. Strategic behaviour to influence entry
1.1. The different market structures
1.2. Review of the perfect competition model
1.3. Review of the monopoly model
1.4. Market definition and concentration measures
2. Models of Oligopoly
2.1. Quantity competition
2.2. Price competition
2.3. Price competition with capacity constraints
2.4. Sequential decisions
2.5. Models with free entry
3. Product Differentiation and Advertising
3.1. horizontal differentiation models
3.2. vertical differentiation models
3.3. Advertising
4. Segmentation and Price Discrimination
4.1. The various types of price discrimination
4.2. price discrimination monopoly
4.3. price discrimination in oligopoly
5. Competition Regulation
5.1. Competition policy
5.2. Repeated interaction and collusion
5.3. Mergers between competing firms
5.4. Strategic behaviour to influence entry
Teaching Methods
The classes are theoretical-practical, combining the concepts with their application to specific examples. The sections are supported by PowerPoint presentations but the blackboard is also used, in particular to solve models and do the proofs of the results and to solve exercises.
Students have to do three practical group projects, where they have to apply the tools and techniques learned in class. These projects involve the resolution of exercises, many of which are new applications or generalizations of the models learned in class.
In the continuous assessment regime, evaluation is made based on the results obtained in the three group projects (30%) and a final exam (70%). The minimum score on the exam is 7.5 points.
On examination regime, the grade is based exclusively on the final exam (100%).
Students have to do three practical group projects, where they have to apply the tools and techniques learned in class. These projects involve the resolution of exercises, many of which are new applications or generalizations of the models learned in class.
In the continuous assessment regime, evaluation is made based on the results obtained in the three group projects (30%) and a final exam (70%). The minimum score on the exam is 7.5 points.
On examination regime, the grade is based exclusively on the final exam (100%).
Certificações
