Industrial Organization

Group	Teacher	Department	Language
Year 3	Jordi Vives Perez	Economía, Finanzas y Contabilidad	ENG

COURSE CONTRIBUTION TO PROGRAM

The course Industrial Organization is part of the training in Economics required for all GEL undergraduate students with an interest in applied social sciences, so it shares the following contributions with the subjects provided by the Department of Economics, Finance, and Accounting:

1. Develop students' analysis ability, mental acumen, and critical outlook concerning problems and economic relationships between companies and their environment.

2. Provide the highest level of professional training and the information required for future professionals in the business and public institutions fields.

Course Learning Objectives

The fundamental objective of the course is to train the Student to analyze and interpret reality from an economic perspective, what one might call "thinking like an economist." In this sense, the course provides a basis to understand the most basic economic environments.

A second objective, of equal importance, is to provide the tools and instruments necessary to carry out the analysis of optimal firm behavior in these environments. Therefore, both the ability to reason and the degree of knowledge of the concepts achieved will be assessed.

CONTENT

1. INTRODUCTION a) What is Industrial Organization? b) The economy, Management, and Science c) Industrial Organization Models Chapter Bibliography: Carlton & Perloff, Ch. 1
2. INDUSTRIAL ORGANIZATION TOOLS a) Traditional Models b) Greenwald's Model c) Market Power Indicators d) Market Structures e) Horizontal Limits of Firms: Economies of Scope and Economies of Scale f) Vertical Limits of Firms Chapter Bibliography: Besanko, Dranove & Shanley, Ch. 2 and 3
3. COMPETITIVE MARKETS a) Assumptions and Model b) Individual Firm Behaviour c) The Competitive Market: Short Run and Long Run d) Demand and Supply Elasticity Chapter Bibliography: Carlton & Perloff, Ch. 2 and 3
4. MARKET POWER a) Monopoly b) Monopsony c) Dominant Position d) Cartel Chapter Bibliography: Carlton & Perloff, Ch. 4 and 5
5. OLIGOPOLY a) Introduction b) Game Theory Review c) One-period games d) Multi-period games Chapter Bibliography: Carlton & Perloff, Ch. 6
6. MONOPOLISTIC COMPETITION a) Introduction b) Product Diferentiation c) Representative Consumer Model d) Spatial Competition Chapter Bibliography: Carlton & Perloff, Ch. 7
7. PRICING a) Introduction b) First-Degree Price Discrimination c) Second-Degree Price Discrimination d) Third-Degree Price Discrimination e) Other Types of Discrimination Chapter Bibliography: Carlton & Perloff, Ch. 9 and 10 Golsbee et al, Ch. 10 Pindyck & Rubinfeld, Ch. 11
8. PLATFORM ECONOMY a) Economy and Technology b) Network Effects c) Metrics, phases d) Myths Chapter Bibliography: Parker, Van Alstyne & Choudary Evans & Schmalensee
9. CIRCULAR ECONOMY a) Introduction b) Regulation c) Business Models Chapter Bibliography: De Angelis Stahel

1. INTRODUCTION

a) What is Industrial Organization?
b) The economy, Management, and Science
c) Industrial Organization Models

Chapter Bibliography:
Carlton & Perloff, Ch. 1

2. INDUSTRIAL ORGANIZATION TOOLS

a) Traditional Models
b) Greenwald's Model
c) Market Power Indicators
d) Market Structures
e) Horizontal Limits of Firms: Economies of Scope and Economies of Scale
f) Vertical Limits of Firms

Chapter Bibliography:
Besanko, Dranove & Shanley, Ch. 2 and 3

3. COMPETITIVE MARKETS

a) Assumptions and Model
b) Individual Firm Behaviour
c) The Competitive Market: Short Run and Long Run
d) Demand and Supply Elasticity

Chapter Bibliography:
Carlton & Perloff, Ch. 2 and 3

4. MARKET POWER

a) Monopoly
b) Monopsony
c) Dominant Position
d) Cartel

Chapter Bibliography:
Carlton & Perloff, Ch. 4 and 5

5. OLIGOPOLY

a) Introduction
b) Game Theory Review
c) One-period games
d) Multi-period games

Chapter Bibliography:
Carlton & Perloff, Ch. 6

6. MONOPOLISTIC COMPETITION

a) Introduction
b) Product Diferentiation
c) Representative Consumer Model
d) Spatial Competition

Chapter Bibliography:
Carlton & Perloff, Ch. 7

7. PRICING

a) Introduction
b) First-Degree Price Discrimination
c) Second-Degree Price Discrimination
d) Third-Degree Price Discrimination
e) Other Types of Discrimination

Chapter Bibliography:
Carlton & Perloff, Ch. 9 and 10
Golsbee et al, Ch. 10
Pindyck & Rubinfeld, Ch. 11

8. PLATFORM ECONOMY

a) Economy and Technology
b) Network Effects
c) Metrics, phases
d) Myths

Chapter Bibliography:
Parker, Van Alstyne & Choudary
Evans & Schmalensee

9. CIRCULAR ECONOMY

a) Introduction
b) Regulation
c) Business Models

Chapter Bibliography:
De Angelis
Stahel

Methodology

Instruments of Economic Analysis will be used to study market structures and strategic behavior.

The learning process combines different pedagogical methodologies: lectures, analysis and discussion of case studies, individual work, small group tasks, and open discussion, among others.

During theoretical lectures, faculty staff will describe and analyze the instruments and the formal models relevant to the contents of the course.

In the practice seminars, faculty staff will solve exercises, apply the knowledge acquired in real-world situations, and perform the rest of the activities (Case Studies, Market Study Project, other activities).

There is also the possibility of online or face-to-face tutorials to clarify any doubts. Students can take advantage of faculty office hours or arrange an on-demand review session by email.

Description	%
Individual Participation	10
Midterm Exam	20
Project: Market Study	30
Final Exam	40

Assessment criteria

Grading will take into consideration not only a final exam but also the students' performance and progress throughout the semester. There will be a Midterm Exam.

The students will face two types of evaluation:

1. Continuous Evaluation (60%)
a) Individual Participation (10%)
b) Midterm Exam (20%)
c) Market Study Project (30%)

The individual grade for the Market Study Project will take into consideration not only the activity grade assigned by faculty staff but also the grade assigned by the rest of the group at the "peer evaluation."

2. Final Exam (40%)

Condition to pass the subject:
- The Student has to pass the final exam.

IMPORTANT: Submitting your projects on time is very important. Please make sure you always check the deadlines, as I will not be accepting any projects that have not met the appropriate deadline.

Bibliography

Besanko et al. Economics of Strategy. Wiley, 7th edition, 2015.
Branderburger & Nalebuff Coopetition. Currency Doubleday, 1997.
Carlton & Perloff Modern Industrial Organization, 2015.
De Angelis Business Models in the Circular Economy. Palgrave, 2018
Dixit & Nalebuff The Art of Strategy, Norton, 2010.
Evans & Schmalensee Matchmakers, Harvard Business, 2016.
Goolsbee et al. Microeconomics. Worth. 2016.
Parker et al. Platform Revolution, Norton, 2016.
Pindyck & Rubinfeld Microeconomics. Pearson, 8th edition, 2017.
Stahel The Circular Economy. Routledge, 2019.

Other books:

Genaro & Melchor Economía Aplicada. Tirant lo Blanch, 2005.
Krugman & Wells Economics. Worth Publishers, 4th edition, 2015.
Varian Intermediate MicroEconomics. Norton, 9th edition, 2014.

Type:	OPT	Curs:	3	Period:	S semester
ECTS Credits:	7 ECTS

Industrial Organization (2225.YR.013013.1)

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