First cycle
degree courses
Second cycle
degree courses
Single cycle
degree courses
School of Economics and Political Science
ECONOMICS
Course unit
INDUSTRIAL ORGANIZATION - MARKETS AND STRATEGIES (Iniziali cognome A-L)
EPP3051653, A.A. 2017/18

Information concerning the students who enrolled in A.Y. 2015/16

Information on the course unit
Degree course First cycle degree in
ECONOMICS
EP2093, Degree course structure A.Y. 2014/15, A.Y. 2017/18
A1301
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Number of ECTS credits allocated 6.0
Type of assessment Mark
Course unit English denomination INDUSTRIAL ORGANIZATION - MARKETS AND STRATEGIES
Department of reference Department of Economics and Management
E-Learning website https://elearning.unipd.it/economia/course/view.php?idnumber=2017-EP2093-000ZZ-2015-EPP3051653-A1301
Mandatory attendance No
Language of instruction English
Branch PADOVA
Single Course unit The Course unit CANNOT be attended under the option Single Course unit attendance
Optional Course unit The Course unit can be chosen as Optional Course unit

Lecturers
Teacher in charge FABIO MANENTI SECS-P/01

ECTS: details
Type Scientific-Disciplinary Sector Credits allocated
Educational activities in elective or integrative disciplines SECS-P/01 Political Economy 6.0

Mode of delivery (when and how)
Period First trimester
Year 3rd Year
Teaching method frontal

Organisation of didactics
Type of hours Credits Hours of
teaching
Hours of
Individual study
Shifts
Lecture 6.0 42 108.0 No turn

Calendar
Start of activities 02/10/2017
End of activities 01/12/2017

Examination board
Examination board not defined

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.
Target skills and knowledge: The course is divided in two modules.

Module 1 is devoted to study different kinds of market structures (perfect competition, imperfect competition, monopoly, oligopoly, and so forth) and to present different scenarios in which firms strive to acquire and use market power for their strategic advantage. While perfect competition and monopoly are two market structures on opposite ends of the spectrum, imperfect competition—where a limited number of firms attempt to manipulate their rivals or consumers—is a more realistic set-up. This course will emphasize market structure analysis and the strategic behaviors of competing firms, including (but not limited to) product differentiation, collusion, price and non-price discrimination, advertising, vertical integration and vertical restraints, research and development, entry and exit. Industrial Organization – Market and Strategies will also introduce the government’s role as a regulator affecting the structure of markets and the behavior of firms. Although this course will introduce Antitrust Laws in the above context, it will not delve into the regulatory implications or the welfare analyses of firms' strategic behaviors, as those subjects belong to more advanced Industrial Organization modules.

The main goal of Module 2 is to apply basic Industrial Organization theories to develop an understanding of the economic features of information technology and digital markets. Students should be able to apply principles covered in this module to real-life cases and to analyze the effects of information on economic transactions, the effects of networks and technological platforms and the implications of pricing and bundling of information goods.
Examination methods: Final written exam made of one or two short essays and a technical exercise
Assessment criteria: For attending students, course evaluation is based on:
- Problem sets 30%
- Final (written) exam 70%
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.
Planned learning activities and teaching methods: - Lessons
- Discussions of cases
- Exercises
Additional notes about suggested reading: - Slides are part of the course material
Textbooks (and optional supplementary readings)
  • Comino S. and Fabio M. Manenti, Industrial Organization of High Tech Markets. London: Edward Elgar, 2013. Reference for Module 2 Cerca nel catalogo
  • Cabral L., Introduction to Industrial Organization. Cambridge Mass.: The MIT Press, 2000. Reference for Module 1 Cerca nel catalogo