IDENTIFYING DATA 2023_24
Subject (*) THEORY OF INDUSTRIAL ORGANIZATION Code 16224109
Study programme
Bachelor's Degree in Economics (2009)
 Cycle 1st
Descriptors Credits Type Year Period
6 Compulsory Second 2Q
Language
Castellà
Department Economics
Coordinator
FLORES FILLOL, RICARDO
 E-mail ricardo.flores@urv.cat
Lecturers
FLORES FILLOL, RICARDO
Web http://gandalf.fcee.urv.es/professors/RicardoFlores/
General description and relevant information <div><strong>GENERAL DESCRIPTION OF THE COURSE<br /></strong></div><div><br /></div><div>It focuses on strategic interaction, market power (monopoly and oligopoly models), product differentiation, and vertical relationships.<br /></div>

Competences
Type A Code Competences Specific
 A1 Explain how the economy works on both the macroeconomic and microeconomic.
 A2 Students master the basic methods and tools for analyzing business reality.
 A5 Analyze economic institutions: companies, public organizations, industrial and financial markets and other services.
Type B Code Competences Transversal
 B2 Effective solutions to complex problems
Type C Code Competences Nuclear
 C4 Be able to express themselves correctly both orally and in writing in one of the two official languages of the URV

Learning outcomes
Type A Code Learning outcomes
 A1 Identify and predict significant economic problems in relation to market power and strategic interaction.
 A2 Master the analytical, graphic and logical tools for understanding business rationality and interaction between companies in a given economic context with certain rules.
 A5 Understand the rationality of companies when they interact in different contexts and can analyze the role of public financial institutions.
Type B Code Learning outcomes
 B2 Follow a logical method to identify the causes of a problem and not merely accept the symptoms.
Draw up strategies to solve problems.
Find appropriate solutions.
Transfer classroom exercises and the cases they have studied to real situations in other environments.
Type C Code Learning outcomes
 C4 Produce oral texts that are appropriate to the communicative situation.
Produce well-structured, clear and rich written texts

Contents
Topic Sub-topic
1. Introduction to Industrial Organization • Aim and development of the modern Industrial Organization
• Approaches to Industrial Organization
2. Efficiency and market power • Monopoly and market power
• Efficiency and market structure
• Dynamic efficiency: Innovation
3. Price discrimination • First, second, and third degree price discrimination
• Temporal discrimination
4. Vertical relations • Vertical control: Forward control, backward control, competitive solution, and bargaining solution
• Vertical integration
• Limits to vertical integration
5. Basic oligopoly models • Quantity competition: Cournot model
• Determinants of collusion
• Cartel stability
6. Market entry • Stackelberg model
• First-mover advantage
• Entry barriers
• Strategies with respect to potential entry: Accommodate, deter or foreclose
7. Price competition and product differentiation • Bertrand's paradox
• Duopoly with horizontal product differentiation: Hotelling model
• Horizontal product differentiation and entry: Salop model
• Vertical product differentiation:Shaked and Sutton model

Planning
Methodologies  ::  Tests
  Competences (*) Class hours
 Hours outside the classroom
 (**) Total hours
Introductory activities
1 1 2
Lecture
A1
A2
A5
 31 46 77
Problem solving, exercises
A1
A2
A5
 18 27 45
Personal attention
A1
A2
A5
 6 6 12
 
Practical tests
A1
A2
A5
B2
C4
 3 7.5 10.5
Practical tests
A1
A2
A5
B2
C4
 1 2.5 3.5
 
(*) On e-learning, hours of virtual attendance of the teacher.
(**) The information in the planning table is for guidance only and does not take into account the heterogeneity of the students.

Methodologies
Methodologies
  Description
Introductory activities Activities aiming at getting familiar with the course and having feedback from the students.
Presentation of the course: Contents, functioning, assessment, and what is expected from the students.
Lecture Exposition of the contents of the course.
During these lectures, the instructor presents the main theoretical concepts included in the syllabus of the course.
Problem solving, exercises During these sessions, the students are expected to solve on the blackboard some exercises previously proposed by the instructor, so that the students need to solve them at home.
Personal attention Office hours to solve doubts from students.

Personalized attention
Description
The instructor devotes some time to office hours to solve doubts and attend requests from students. To be determined during the first lecture of the course.

Assessment
Methodologies Competences Description Weight        
Problem solving, exercises
A1
A2
A5
 During these sessions, the students are expected to solve on the blackboard some exercises previously proposed by the instructor, so that the students need to solve them at home. 20%
Practical tests
A1
A2
A5
B2
C4
 Similar exercises to the ones solved in class corresponding to block I (Chapters from 1 to 4) 30%
Practical tests
A1
A2
A5
B2
C4
 Similar exercises to the ones solved in class corresponding to block I and II (Chapters from 1 to 7) 50%
Others  
 
Other comments and second exam session

- Assessment of the first call. There will be a midterm test accounting for 30% of the final grade and a final test (including all the materials of the course) accounting for 50% of the final grade. The remaining 20% of the final grade is related to participation and problem-solving in class. A minimum mark of 4 in the final test is required.

- Assessment of the second call. There will be an overall test including all the materials of the course (containing exercises). This test will account for 100% of the overall mark.

Sources of information

Basic

1) Oliva, M., Carles, M., Durán, C., Pérez, M.J., Teoria de l'organització industrial, servei de publicacions de la URV, most recent available edition.

2) Flores-Fillol, R., Pérez Lacasta, M.J., Pràctiques d'Economia Industrial, eina-e, servei de publicacions de la URV.
Complementary

1) Tirole, J., "The theory of industrial organization", MIT Press (última edició disponible).

2) Martínez-Giralt, X.: "Organització industrial". Sevei de publicacions de la UAB (última edició disponible).

3) Cabral, L.: "Economia industrial". McGraw-Hill (última edició disponible).

4) Fageda, X. i Flores-Fillol, R.: "Airport congestion and airline network structure", 2017, in John D. Bitzan and James H. Peoples, Ed., The Economics of Airport Operations -- Advances in Airline Economics 6, 335-359, Emerald Publishing Limited (ISBN: 978-1-78714-498-9).

5) Fageda, X., Flores-Fillol, R. i Theilen, B.: "Joint ventures in the transatlantic airline market", 2019, in Kevin Cullinane, Ed., The Economics of Air Transport in Europe -- Advances in Airline Economics 8, 117-136, Emerald Publishing Limited (ISBN: 978-1-78973-282-5).

6) Bernardo, V., Fageda, X. i Flores-Fillol, R.: "Dealing with negative externalities: Low emission zones vs. congestion tolls", forthcoming, in Roger Vickerman, Ed., International Encyclopedia of Transportation1, 231-236, Elsevier (ISBN: 978-0-08102-671-7)
Recommendations


Subjects that it is recommended to have taken before
MICROECONOMICS/16224103
(*)The teaching guide is the document in which the URV publishes the information about all its courses. It is a public document and cannot be modified. Only in exceptional cases can it be revised by the competent agent or duly revised so that it is in line with current legislation.