Universidade Nova de Lisboa

Universidade Nova de Lisboa

Nova School of Business and Economics

Industrial Organization

Code

1112

Academic unit

null

Department

null

Credits

7,5

Teacher in charge

Vasco Santos

Teaching language

English

Objectives

This is a first course in IO. It aims at:

  • (i) introducing the main topics of IO and;
  • (ii) teaching the main techniques used to deal with those topics.

Prerequisites

Mandatory Precedence:

- 1100. Introduction to Microeconomics

Subject matter

Market structure: extent of a market, concentration and volatility measures. Oligopoly models: dominant firm and monopolistic competition; Bertrand, Cournot and Stackelberg; dynamic models. Market power: collusion (static and dynamic analyses). Barriers to entry: scale economies, strategic behavior; entry and welfare. Mergers and acquisitions: horizontal mergers, vertical integration. Price discrimination: definitions and examples.

Bibliography

  • Cabral Luís, 1994, Economia Industrial, Lisbon: McGraw-Hill.

  • Cabral Luís, 2000, Introduction to Industrial Organization, Boston, MA: The MIT Press.

  • Ivaldi Marc, Bruno Jullien, Patrick Rey, Paul Seabright and Jean Tirole, 2003, “The Economics of Tacit Collusion”, Final report for DG Competition, European Commission.

  • Barros Pedro Pita, 1998, Exercícios de Economia Industrial, Lisbon: McGraw-Hill.

  • Carlton Dennis and Jeffrey Perloff, 2003, Modern Industrial Organization, 4th. edition, London: Addison-Wesley.

  • Belleflamme Paul and Martin Peitz, 2015, Industrial Organization: Markets and Strategies, 2nd edition, Cambridge, UK: Cambridge University.

Resources

Students are supplied with problem sets. Some of the exercises therein are solved in the practical sessions, the remainder are for students to solve on their own.

Teaching method

Formal lectures followed by practical classes. In addition, students are provided with plentiful material to practice.

Evaluation method

The final exam is mandatory and must cover the entire span of the course. Its weight in the final grade can be between 30 to 70%. The remainder of the evaluation can consist of class participation, midterm exams, in class tests, etc. Overall, written in class assessment (final exam, midterm) must have a weight of at least 50%.

Regular exam period:

Continuous assessment elements (and their weights)

  • Midterm: 40%

Final exam (and their weighting): 60%

Resit exam period:

Continuous assessment (and their weights) if different than 100%

  • Midterm: 0% or 40%

Final exam (and its weight): 100% or 60%

Grade improvement in regular period:

Continuous assessment (and their weights) if the scanning feature doesn’t count 100%

  • Midterm: 0% or 40%

Final exam (and its weight): 100% or 60%

Grade improvement in resit period:

Continuous assessment (and their weights) if different than 100%

  • Midterm: 0% or 40%

Final exam (and their weighting): 100% or 0%

Courses