Teaching GuideTerm Faculty of Economics and Business |
Grao en Economía |
Subjects |
European Industrial Organisation |
Contents |
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Identifying Data | 2023/24 | |||||||||||||
Subject | European Industrial Organisation | Code | 611G01033 | |||||||||||
Study programme |
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Descriptors | Cycle | Period | Year | Type | Credits | |||||||||
Graduate | 1st four-month period |
Fourth | Obligatory | 6 | ||||||||||
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Topic | Sub-topic |
CHAPTER 1: INTRODUCTION TO GAME THEORY | • The problem of interdependence between decision-making agents, and the conditional optimization decision. • Non-cooperative versus cooperative games • Types of non-cooperative games according to the nature of the interaction (static, dynamic or repeated), as well as the information available (perfect/imperfect or complete/incomplete). • Formal definition and representation of a game in normal and extensive form. |
CHAPTER 2: NASH EQUILIBRIUM FOR NON-COOPERATIVE GAMES |
• Best response correspondence. Dominant strategies. • The Nash equilibrium. Existence of Nash equilibrium. Interpretation and efficiency: the prisoner's dilemma. Other resolution concepts: the maximim. • Representative examples. • Equilibria with continuous functions of best response. • Oligopolies with complete information in action: Cournot; Bertrand. |
CHAPTER 3: GAMES IN STAGES. LEADERSHIP AND STRATEGIC ADVANTAGES FOR ENTRY. |
• Definition of extensive games with perfect or imperfect information. • Subgame perfect equilibrium. Backward induction and credible threats. Refinements of the Nash equilibrium. • Leadership in oligopolies: Stackelbert in quantities and prices. • Other models of leadership: reinterpretation in terms of capacity and strategic advantages of established companies. • Barriers to entry and entry deterrence. The limit price strategy. |
CHAPTER 4: PRODUCT DIFFERENTIATION IN STATIC AND DYNAMIC GAMES | • Horizontal differentiation. Hotteling's model. • Vertical differentiation. • Advertising and related marketing strategies. Packaging of products and services. |
CHAPTER 5: EQUILIBRIUM IN GAMES WITH INCOMPLETE INFORMATION | • Introduction and examples. • Characterization of a Bayesian game. Bayesian equilibrium. • Oligopolies with incomplete information in action: Cournot and Bertrand. |
CHAPTER 6: REPEATED GAMES | • Basic concepts and examples. • Paradoxes in unique equilibrium games with a finite and certain horizon: prisoners' dilemma and warehouse chain. • Games with an infinite or uncertain horizon: trigger and retaliation strategies. • Multiple equilibria and Folk theorem. |
CHAPTER 7: CARTELS AND COLLUSION IN OLIGOPOLIES | • Collusion in oligopolies: solutions in quantities and prices, and perfect Pareto equilibria. • Information mechanisms and collusion between oligopolists: discussion of stability. • Different penalty strategies and credibility strategies. • On cartels and the possibilities of antitrust policy. |
CHAPTER 8: MONOPOLY AND ECONOMIC EFFICIENCY: TRIGGERS OF INTERVENTION | • Monopoly regulation: Flexible regulation in the EU. The new competition tool (NCT) in the EU. Underlying theories of damage (harm). • Intervention activators. Casuistries and indicators. |
CHAPTER 9: NETWORK ECONOMIES AND DIGITAL PLATFORMSS | • Networks and platforms. Scale and network effects. • Monopolistic competition in platform economies. • Multihoming vs. Singlehoming. |
CHAPTER 10: INTELLECTUAL PROPERTY | • Copyrights. Patents. Trademarks. • Intellectual property: international character. |
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