Applied Industrial Economics

Announcements

To come.

General information

This webpage will provide you with some information regarding the course “Applied Industrial Economics” (optional course, second year, second term, Degree in Economics). All lectures and tutorials by Juan A. Mañez, room 4P17B, Office hours: Tuesday 15:30-17:30; Thursday 12:30-14:00 and Friday 17:30 to 12:30.

Description of the course

The syllabus content is divided into three parts. The first one includes four topics. The first of them is introductory in nature is devoted to present Bain’s structure-conduct-performance paradigm (SCP). The next four topics provide some of the Basic tools required for the study of Industrial Economics. In the first of them, “Oligopoly models”, that analyses direct causality in the SCP paradigm, we examine the theoretical models of imperfect competition and strategic interaction among firms. To get this aim, we introduce the basic elements of game theory that will be needed along course. The three following topics are devoted to analyse the so-called retroactive effects of the SCP paradigm. These two topics include both traditional models based on technological factors and more sophisticated models that try to embody firms’ strategic behaviour.

Topics 6, 7 and 8, that constitute the second part of the course syllabus, can be considered as further developments of topics 2 to 5. In these topics we analyse non-price competition aspects as: product differentiation or advertising expenditures. We also study the effects of these non-price forms of competition on market structure and intensity of between-firms price competition. In order to carry out these analyses we use recently developed theoretical models.

The third part of the course syllabus, just one topic, is devoted to the analysis of the role of public institutions from a Industrial Economics perspective.

Course Topics

PART I: Market structure and strategic interaction

Topic 1.-Market structure and concentration .

Topic 2.-Oligolopositic behaviour models.

Part 1

Part 2

Part 3

Topic 3.-Entry costs, market structure and welfare

Topic 4.-The entry of new competititors.

Topic 5.-Horizontal mergers and vertical integration.

PART II: Other forms of competition

Topic 6.-Product differentiation: patterns of price setting (PPT)