Economics, Industrial Organization, Second Cycle

The economic theory of industrial organization focuses on how markets work, in particular markets with imperfect competition where firms act strategically. The course uses oligopolistic and monopolistic models to analyze which decisions firms make, which market outcomes these decisions lead to and what the consequences are for consumers and welfare. Areas covered are market power, product differentiation, advertising, price discrimination strategies, cartels and tacit collusion, horizontal and vertical integration, entry and exit, innovations and intellectual property, and network economies. After completing the course, the student is expected to be able to explain economic arguments and justify which models are relevant for analyzing problems that are relevant for areas of industrial organization, to be able to carry out calculations and analyses of market equilibria, and to be able to describe the implications for how competition authorities and other regulatory agencies might act from a welfare perspective.