INDUSTRIAL ORGANIZATION - MARKETS AND STRATEGIES (Iniziali cognome M-Z)

First cycle degree in ECONOMICS

Campus: PADOVA

Language: English

Teaching period: First Quarter

Lecturer: FABIO MANENTI

Number of ECTS credits allocated: 6


Syllabus
Prerequisites: This course requires a basic understanding of microeconomics and game theory. We will review the needed micro and game theory topics briefly, but the intent is not to re-teach principles.
Examination methods: Final written exam made of one or two short essays and a technical exercise
Course unit contents: MODULE 1: Industrial organization
1. Course Introduction. Basic Micreoeconomics: Demand and costs. Profit maximization and efficiency. Monopoly and perfect competition.
2. Games and Strategy. Dominant and dominated strategies, Nash equilibrium.
3. Oligopoly competition. The Bertrand and the Cournot models.
The Stackelberg model (leader – follower).
4. Collusion.
5. Price and non-price discrimination. Non linear prices.
6. Versioning, bundling and other strategies of consumer sorting.
7. Vertical relations; double marginalization. Horizontal externalities (retailer competition).
8. Market Structure and Marker power. The Lerner index; the HHI index.
10. Product differentiation; horizontal and vertical differentiation.
11. Product positioning, brand loyalty and switching costs.
12. Advertising; information, persuasion and signaling; price competition and advertising.
13. Research and Development; market structure and incentives for R&D; the dynamics of R&D competition.
14. Strategic behavior, entry and exit.

MODULE 2: High tech and digital markets
1. Markets with network effects. Critical mass. Compatibility. Dynamics of technology adoption. How to win a standards war.
2. Two-sided networks.
3. Frictionless economy.