Industrial Organisation and Business Strategy

Number of credits allocated: 6 ECTS Credits

Objective of the course

• Understanding of strategic thinking in response to external factors (i.e., market structure) and internal organization of the firm
• Apply analytical tools in designing optimal pricing schemes in various environments
• Appreciation of the importance of incentives in firm performance

Prerequisites: None            

Course contents

First Part:

• Monopoly: Single- and Multi-product, Linear and Non-Linear Pricing, Regulation and Ramsey Pricing.
• Oligopoly and Short-term Competition: Competition in Quantities and in Prices, with or without Capacity Constraints
• Oligopoly and Dynamic Price Competition: Tacit Collusion
• Oligopoly and Entry: Entry Barriers, Deterrence and Accommodation Strategies, Limit Pricing
• Product Differentiation: Vertical Differentiation and Quality, Horizontal Differentiation

Second Part:

• Agency under Moral Hazard
• Multitasking
• Organization in teams
• Teamwork & Sabotage
• Career Concerns
• Relational Contracts

Recommended reading

• Paul Belleflame & Martin Peitz, (2015), Industrial Organization: Markets and Strategies, Cambridge University Press
• Oz Shy (1996), Industrial Organization: Theory and Applications, MIT Press
• Jean Tirole (1991), The Theory of Industrial Organization, MIT Press (This is a much more rigorous and technical introduction to industrial organization. It is only proposed as a reference to those who want to get a more in-depth look at the subject.)
• Paul Milgrom and John Roberts (1992), Economics, Organization and Management, Prentice Hall 1992
• John Roberts (2004), The Modern Firm: organizational design for performance and growth, Oxford University Press

Teaching methods: Lectures and distribution of take-home problem sets

Assessment methods :Final written exam

Language of instruction:  Greek or English