Industrial organization

Enseignants

Belleflamme Paul;

Langue
d'enseignement

Anglais

Préalables

Le(s) prérequis de cette Unité d’enseignement (UE) sont précisés à la fin de cette fiche, en regard des programmes/formations qui proposent cette UE.

Thèmes abordés

L'économie industrielle couvre l'étude des marchés en concurrence imparfaite. Le programme est repris ci-dessous. Chaque question théorique est illustrée par des exemples concrets. Ces exemples concernent notamment la contri-bution des fusions à l'efficience économique, l'importance des politiques de prédation par les prix, les effets sur les consommateurs des restrictions verticales imposées par les producteurs à leurs distributeurs, les effets sur le bien-être des consommateurs d'une meilleure information sur les prix ou sur la qualité des produits, les effets de la pu-blicité, l'efficacité des joint venture comme moyen de stimuler la recherche, l'impact de la politique de la concur-rence sur le bien-être et la concurrence.

Acquis
d'apprentissage

A la fin de cette unité d’enseignement, l’étudiant est capable de :
1	L'objectif de ce cours est de fournir aux étudiants les connaissances de base de l'économie industrielle (analyse des marchés en concurrence imparfaite).

La contribution de cette UE au développement et à la maîtrise des compétences et acquis du (des) programme(s) est accessible à la fin de cette fiche, dans la partie « Programmes/formations proposant cette unité d’enseignement (UE) ».

Contenu

Ce cours est enseigné en anglais.
Course description
Industrial organization is the study of firms and markets. It focuses on firms’ behavior in imperfectly competitive markets. Such markets appear to be far more common than the perfectly competitive markets that were the focus of your basic microeconomics course. Imperfectly competitive markets are characterized by strategic interaction among firms: firms’ profits depend on the combination of the decisions taken by all firms on the market. Therefore, firms must take this interdependence into account when they make their decisions. In such contexts, we want to understand how firms acquire and use market power. We also want to shed light on government competition policy. This subject will be approached from both theoretical and applied perspectives.

Learning objectives/outcomes
At the end of the course, students should

• have a deep knowledge of the basic models of oligopoly theory,
• understand how or why oligopolistic firms manage to exert market power,
• understand how governments design and apply competition policy,
• be able to apply all these concepts to real-life situations.

Méthodes d'enseignement

Teaching is done by combination of lectures and classes.

• Lectures are given by the professor and are two hours long. There will be 12 lectures (and one online Q&A session). Reading assignments are set during lectures to help you to read around the subject in your own time.
• Classes are given by the teaching assistants and are two hours long. They are given to groups of about 30 students. There will be six classes, which will be devoted to solving problems and discussing case studies. All necessary information (formation of groups, schedule of classes) will be given very soon after the start of the term.

Learning involves your engagement in the above two forms of teaching. By attending the lectures and by reading the corresponding material, you will be exposed to the main theoretical concepts. By working out the solutions to the problem sets and by discussing case studies (through the classes), you will have the opportunity to deepen your understanding of the main concepts and to apply them to real-life situations.

Modes d'évaluation
des acquis des étudiants

The final grade in this course will be based on a 3 hour, close-book, written exam covering the entirety of the course (including the required readings). The exam will be organized in the January and September exam sessions. It will test the student’s knowledge of the main concepts and their ability to apply these concepts through (i) the solution of numerical problems (similar to those solved during the classes) and (ii) the discussion of a real-life case study.

Autres infos

It is assumed that the student has taken 'ECGE1222 - Microéconomie' (or equivalent). The student should be comfortable with applying calculus and should have a rudimentary knowledge of game theory, as is introduced in 'ECGE1222 - Microéconomie' or as is further covered in 'ECGE1333 - Théorie des jeux et économie de l'information'. For those who have not taken a course in game theory, we will have a review of important concepts as well as one class dedicated to solving game theory problems.

Ressources
en ligne

A Moodle website is dedicated to the course. The slides and most of the readings are made available on the site. The site is also be used to send course related information.

Bibliographie

The course will rely heavily on the required textbook by Paul Belleflamme and Martin Peitz, Industrial Organization: Markets and Strategies (Cambridge: Cambridge University Press, 2015; 1st edition, 2010).
Occasional additional readings (typically news articles) may be posted on the Moodle website.
Students are encouraged to scan the business sections of magazines and newspapers such as The Economist, Wall Street Journal, and Financial Times for articles relevant to the topics covered in the course.

Faculté ou entité
en charge

ESPO