Industrial Organisation is a sub-field of Economics that investigates competition between firms and the evolution of market structure. This course will focus on explaining how firms make decisions and how those decisions affect market outcomes like prices, quantities, the type of products offered, and social welfare. The principal topics discussed in lectures and classes will include:
• How firms make decisions regarding pricing, product design and advertising
• How firms make decisions regarding entry, mergers and takeovers, innovation, vertical relation
• The welfare effects of firm decisions and market power
• Interactions between strategic firms and competition
• Abuse of dominance and other socially suboptimal behavior by firms, and how to regulate it
• Basic methods for using data to analyse firm behaviour
The course is intended for students who would like to deepen their understanding of monopolistic behaviour, oligopolistic competition, and competition policy. Nevertheless, the discussed material may also be of interests to students interested in applications of Mathematical Analysis and Game Theory to Economics.
The course is designed to be as self-contained as possible, however, a basic knowledge of Microeconomics, Game Theory, and Calculus is required to fully benefit from the course.
Transferable Knowledge and Skills
The course provides a profound understanding of competition among firms and its impact on social welfare. The acquired knowledge is indispensable in designing, analysing, and evaluating practices used by firms in their everyday activity. The discussed material may be especially useful to students who plan their career in widely defined business, economic consultancy, or competition policy authorities.