Course 2010-2011 a.y.

Course Objectives

The course reviews the modern theory of Industrial Organization with reference to monopoly and oligopoly. The main issues are: monopolistic pricing and price discrimination, multiproduct monopoly, vertical contracts; price and quantity competition, product differentiation, collusion, quality, entry and market structure, strategic entry deterrence, foreclosure. The course also analyzes policy issues as antitrust and regulation and the design of liberalization plans.

Course Content Summary

Monopoly

• Pricing and multiproduct monopoly  
• Vertical integration and vertical contracts
• Regulation of a natural monopoly  

Oligopoly  

• Static models: Bertrand, Cournot, Hotelling  
• Dynamic models: collusion 
• Entry, barriers to entry and foreclosure  
• Competition policy and liberalizations

Detailed Description of Assessment Methods

Textbooks

• J. TIROLE, The Theory of Industrial Organization, MIT Press, 1988;
• M. MOTTA, Competition Policy: Theory and Practice, Cambridge University Press, 2004; 
• P. REY, J. TIROLE, A Primer on Foreclosure, in M. ARMSTRONG, R. PORTER, eds. Handbook of Industrial Organization, vol. 3, North Holland, 2007;
• L. PEPALL, D. RICHARD, G. NORMAN, Industrial Organization, Contemporary Theory and Empirical Applications, Fourth Edition, Blackwell Publishing, 2008;
• M. ARMSTRONG, Recent Developments in the Theory of Regulation, in M. ARMSTRONG, R. PORTER, eds. Handbook of Industrial Organization, vol. 3, North Holland, 2007;
• K. VISCUSI, J. HARRINGTON, J. VERNON, Economics of Regulation and Antitrust, MIT Press 2005.

Prerequisites