Firms and Markets : Strategic Analysis

lbrai2208  2019-2020  Louvain-la-Neuve

Firms and Markets : Strategic Analysis
Note from June 29, 2020
Although we do not yet know how long the social distancing related to the Covid-19 pandemic will last, and regardless of the changes that had to be made in the evaluation of the June 2020 session in relation to what is provided for in this learning unit description, new learnig unit evaluation methods may still be adopted by the teachers; details of these methods have been - or will be - communicated to the students by the teachers, as soon as possible.
5 credits
30.0 h
Gaspart Frédéric;
micro-economics and introduction to game theory, LBIRA 2104 Decision Tools (or equivalent)
Main themes
Game Theory and econometrics applied to industrial economics
a) horizontal relationships between producers (Bertrand vs Cournot competition, vertical vs horizontal product differenciation,...)
b) vertical relationships between producers : double marginalization, mergers
c) entry and barriers to entry
d) the roles of external actors (the State, consumer collective actions,...)

At the end of this learning unit, the student is able to :

1 a. Contribution de l'activité au référentiel AA (AA du programme)
1.1-1.5, 2.1-2.5 industrial organisation (theory and empirics)
3.2-3.4, 3.6-3.8 matching real situations with archetypal problems, solving models and interpreting the abstract results
4.1-4.2 identifying typical problems in complex situations
4.4-4.7 drawing lessons from abstract models for complex, real situations
6.1-6.2 & 6.4-6.7 articles presented by students, homeworks (questions)
5.8, 7.1 & 7.5 competition policy-making
b. Formulation spécifique pour cette activité des AA du programme
At the end of the course, students will be able :
- to read, understand and criticize theoretical and empirical articles in industrial organization in an autonomous way.
- to analyze strategic choices made by firms.
- to asses the performance of economic activities at the firm level and at the sector level.
- to decipher the main stakes of market structure and competition policy on the basis of relevant information about the production activities in a given sector.
- to articulate theoretical findings with empirical analyzes in industrial organization.

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.
Introductory part, presented by the teacher :
1.     Elements of game theory: normal form games, developped form games, equilibrium concepts.
2.     Cournot versus Bertrand competition.
Students pick up a series of articles that they will read and present themselves in close association with the teacher. The assistance must subsequently raise two relevant questions on each presentation ; these are answered the next week.
The set of articles in which the students choose covers the following topics :
3.     Product differentiation (vertical, horizontal, information asymetries and market failures).
4.     Vertical versusHorizontal integration, contract theory, agency (Principal-Agent relationship).
5.     Potential competition, excess capacity, entry barriers.
Teaching methods
Articles to be read, classes taught in association by students and the teacher, homeworks
Evaluation methods
Homeworks (student talks, critical questions, answers)
Online resources
The list of articles in which students choose is constantly evolving.
Faculty or entity

Programmes / formations proposant cette unité d'enseignement (UE)

Title of the programme
Master [120] in Biochemistry and Molecular and Cell Biology

Master [120] in Agricultural Bioengineering

Master [120] in Agriculture and Bio-industries