Industrial Economics

2013/ 2014 Acad em ic Year

10/ 04/ 2013

6141040

Industrial Economics Course

Vasco Rod rigu es Course Coord inator

Vasco Rod rigues

Lecturer nam e

Class cod e

vrod [email protected].

insert office phone num ber

e-m ail add ress

Office phone num ber

Course presentation - Topics and Objectives Ind ustrial Econom ics, also know n as Ind ustrial Organization, stud ies the w ay firm s and m arkets w ork in cond itions of im perfect com petition. The d iscipline is strongly related to Microeconom ics. The course focuses on the strategic interaction betw een firm s, the strategies that firm s m ay pursue to gain and m aintain m arket pow er and the econom ic consequences of the existence of m arket pow er. Ind ustrial Econom ics is useful in any activity that requires und erstand ing the w ay m arkets operate, particularly, business m anagem ent, strategic consulting, and com petition policy. By the end of the course, stud ents should be able both to solve theoretical problem s and interpret and analyse real w old situations applying the fund am ental concepts of Ind ustrial Econom ics.

Topics/ Objectives

Industrial Economics 10/04/2013

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Syllabus [Bibliography] 1. Found ations of Ind ustrial Econom ics [PRN ch. 1+2+3+4] 2. Price policies for firm s w ith m arket pow er [PRN ch. 5] 3. Prod uct policies for firm s w ith m arket pow er [PRN ch. 6] 4. Com petition in quantities: Cournot, Stackelberg [PRN ch. 7+8] 5. Com petition in prices: Bertrand [PRN ch. 7+8] 6. Strategic entry d eterrence [PRN ch. 9] 7. Collusion [PRN ch. 10] 8. H orizontal m ergers [PRN ch. 11] 9. Vertical restraints [PRN ch. 13] 10. N etw orks [PRN ch. 17] Each chapter in the syllabus correspond s to one lecture.

Each lecture topic w ill be d iscussed d uring w orkshops. You can find inform ation regard ing m ain bibliography, w hich is d escribed in detail in Mand atory bibliography .


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Mandatory bibliography The course’s m ain textbook is: Peppal, L., D. Richard s e G. N orm an, 2011, Contem p orary Ind ustrial Organization: A Quantitative Approach, Wiley, ISBN 978-0-470-59180-2. (PRN )

Mand atory bibliography

Other bibliography Other good textbooks: - Pepall, Richard s & N orman, 2008, Ind ustrial Organization: Contem porary Theory and Em pirical Applications 4th ed ., Wiley-Blackw ell, ISBN 978-1-4051-7632-3; - Cabral, Lu ís, 2000, Introd uction to Ind ustrial Organization, MIT Press; - Carlton, Dennis W., Perloff, Jeffrey M., 1999, Mod ern Ind ustrial Organization, 4ª ed ., Ad d ison Wesley; - Martin, Stephen, 2010, Ind ustrial Organization in Context, Oxford University Press.

Other bibliography


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Assessment It is applied the General Regim e of Assessm ent of the “Faculd ad e d e Econom ia e Gestão”. All stud ents are ad vised to subm it to the continuous assessm ent regim e, w hose cond itions for the present course are presented here after. In each acad em ic year, stud ents have at their d isposal tw o opportunities for getting approved : (1) continuous assessm ent; (2) final exam in the appeal season. The access to the appeal season exam is lim ited to a m axim um of 24 ECTS per acad em ic year. a. Continuous assessment The continuous evaluation grad e is com posed of three elem ents: Problem solving (20%) – a stu d ent w ill get 0.5 points, up to a m axim u m of 20, per each problem that he/ she volunteers to solve in the w orkshops; if the stud ent is unable to solve a problem that he voluntered to present, he w ill lose 5 points; Essays (40%) – each stud ent should d eliver 2 short essays (m axim um : 1,500 w ord s), appying the concepts stud ied in the course to real situations; essays m ay prepared ind ivid ually or in groups of up to 3 stud ents; Tests (40%) – there w ill be tw o short tests (45 m inutes); only the best m ark w ill count.

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For m ore d etails, see the course’s “Marking Rules”, on Blackboard .

Assid uity and class participation

0%

Problem solving

+

20%

Essays

+

40%

Tests

+

40%

% +

+

%

N OTE: The sum of all elem ents m ust be equal to 100%

To obtain approval through the continuous assessm ent schem e, the grad e on the Com prehensive Exam m ust be above or equal to 7,5.

Continuous Assessment (CA)

The Faculty’s Evaluation Rules for calculating final course grad es allow the stud ent to take into account the grad e obtained in the Com prehensive Exam if higher than the continuous assessm ent result, and if the average classification in the continuous evaluation is above or equal to 8,5.

60%

Comprehensive Exam (CE)

40%

b. Reseat Final Exam (FE)

Final Grade

100% The Access to the Appeal Final Exam is lim ited . Stud ents m ight choose to subm it to a m axim um of 24 ECTS per acad em ic year. In this appeal season the continuous assessm ent elem ents are not consid ered .


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Acad emic calend ar

Managerial Econom ics

Lecture 1

Lecture 2

Lecture 3

Lecture 4

Workshop 5

Found ations

Price policies

Prod uct policies

Quantity com petition

Minitest

Workshop 1

Workshop 2

Workshop 3

Workshop 4

Insert brief d escription

Exercises

Exercises

Exercises

Main dates: D escribe type of assessment Insert d ate D escribe type of assessment

Week 1

Week 2

Week 3

Week 4

Week 5

Insert d ate D escribe type of assessment Insert d ate

Lecture 5

Lecture 6

Lecture 7

Workshop 9

Price com petition

Entry d eterrence

Collusion

Minitest

Workshop 6

Workshop 7

Workshop 8

Exercises

Exercises

Exercises

D escribe type of assessment Insert d ate D escribe type of assessment

Week 6

Week 7

Week 8

Insert d ate D escribe type of assessment Insert d ate

Week 9

Essay/Assignment/Report Lecture 8

Lecture 9

Lecture 10

Workshop 13

Workshop 14

H orizontal m ergers

Vertical restraints

N etworks

Exercises

Exercises

Workshop 10

Workshop 11

Workshop 12

IExercises

Exercises

Exercises

Comprehensive Exam

Week 10

Week 11

Week 12

Final Exam (Appeal) Week 13

Week 14

This table provid es an integrated view of the sem ester: m ain topics and assessm ent. Lecturer can request from stud ents other kind s of assessm ent.


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Observations Insert observations


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