Industrial organization and competition policy

obligatory courses

(in Polish) Studenci powinni być zaznajomieni z materiałem przedmiotu "Analiza matematyczna" w zakresie w szczególności maksymalizacji funkcji przy ograniczeniach. Ponadto wymagana jest wiedza z przedmiotu Mikroekonomia, w szczególności w zakresie teorii przedsiębiorstwa.

The aim of this course is to familiarize students with basic industrial organization theory. Most of the topics presented allows the students to draw conclusions on the changes in economic welfare and shows the importance of competition policy in solving the market failures.

The course „Industrial organization and competition policy” familiarizes students with the topic of competition amongst the enterprises and the effects of different market structures. It covers the decisions of enterprises and the impact that those decisions and competition policy may have on the level of economic welfare.

The topics covered:

1-2: Introduction. Perfect and imperfect competition, monopoly, cost function.

3-4. Durrable goods monopoly. Dominant firm and competitive fringe.

5-7 Price discriminaton. Two-part tariff.

8. Vertical integration. External economies and vertical control.

9. Horizontal integration. Anti-trust policy.

10. Game theory and static monopoly games. Cournot duopoly.

11. Bertrand duopoly. Capacity constraints.

12. Dynamic games. Stackelberg model.

13-14. Sunk cost and entry. Stackelberge-Spence-Dixit model.

15. Natural monopoly. Regulation. First and second best solutions. Ramsey prices. Multipart tariffs.

Literatura

J. Church and R. Ware, Industrial Organization: A Strategic Approach, McGraw Hill, 2000

J. Tirole: Theory of Industrial Organization, MIT Press, 1989

1. Student is aware of the importance of basing market decisions and regulatory interventions on solid foundations of microeconomic producer theory. Student is also aware of the limitation of economic models when used in analyzing behavior market players.

2. Students understand that industrial organization can be applied to real economic and that the analysis can be performed using empirical models

3. Student can formulate strategic and operational goals for the firm and choose appropriate means to achieve them based on the market situation and the legal and economic limitations.

4. Student can assess goals and purpose of regulations together with their effects and efficiency.

5. Students are able to undertake employment in entreprises or public organizations that deal with design and assessment of economic policy, in particular competition policy.

6. Students are able to communicate with others and transmit the knowledge acquired.

7. Students are able to formulate and present their views based on their knowledge and engage in discussion concerning these views.

8. Students are able to fulfill their duties and plan the work schedule on their own.

SW01, SW02, SW03, SW04, SW05, SU01, SU02, SU03, SU04, SU05, SU06, SU07, SK01, SK02, SK03

Students need to pass a written exam as well as present a case study on one of the class topics.