Industrial Economics

Presentation

The main objective is to equip students with a theoretical and practical knowledge that allows, at an intermediate level, to understand the decision-making process of firms in oligopolistic markets and to analyse their strategic behaviour.

At the end of the semester students should be able to critically analyse state intervention in the market, namely in what concerns competition policy and market regulation.

Part of this Programme

Economics

Level of Qualification|Semesters|ECTS

| Semestral | 5

Year | Type of course unit | Language

2 |Mandatory |Português

Code

ULHT32-17115

Recommended complementary curricular units

Mathematics and Microeconomics I

Prerequisites and co-requisites

n/a

Professional Internship

Não

Syllabus

1. BASIC CONCEPTS
   1. Introduction
   2. Firms
   3. Market structure
2. OLIGOPOLY
   1. Game theory
   2. Classic models
3. ENTRY AND ANTICOMPETITIVE STRATEGIES
   1. Entry and strategic decisions
   2. Collusion
4. CONTRACTUAL RELATIONS BETWEEN FIRMS
   1. Mergers and acquisitions
   2. Vertical relationships
5. STRATEGIC BEHAVIOUR
   1. Price discrimination
   2. Product differentiation
   3. Advertising
   4. Research and development
6. MARKET INTERVATION
   1. Competition policy
   2. Market regulation

Objectives

• Acquire the concepts of industrial organization at an intermediate level;
• Develop the theoretical and analytical skills needed to understand the characteristics of oligopolistic markets, firms behaviour in oligopolistic market structures and their impact on social welfare;
• Capability to critically analyse state intervention in the market.

Teaching methodologies and assessment

Students will be assessed based on continuous evaluation as follows:
1^st Test (closed book, duration 2h00) - 40% - 22.04.2020
2^nd Test (closed book, duration 2h00) - 40% - 08.96.2020
Exercises for evaluation (to be made at home) - 20%

Continuous evaluation requires that students attend at least 75% of classes.

Students  who do not obtain approval in continuous evaluation regime will be submitted to a final exam (closed book, duration 2h00), which will have a weight of 100%.

This course has no oral exams.

References

• Cabral, Luís - Introduction to Industrial Organization. 2nd edition. Cambridge Massachusetts: MIT Press, 2017, 440 páginas. ISBN: 9780262035941

• Pepall, L., Richards, D. e Norman, G. - Industrial Organization: Contemporary Theory and Empirical Applications. 5th edition. Wiley-Blackwell, 2014, 736 páginas. ISBN: 9781118250303

• Varum et al. - Economia Industrial - Teoria e Exercícios Práticos. Edições Sílabo, 2016. ISBN: 9789726188469

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