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Industrial Economics (B-KUL-D0M47B)

6 ECTSEnglish26 Second termCannot be taken as part of an examination contract
Verboven Frank
OC Economische wetenschappen FEB Campus Leuven

Aims

The course provides analytical concepts for analyzing firm behavior in different market structures. The course has two main goals: 1) introduce micro-economic and game-theoretic tools to understand competition and market power and 2) develop an active understanding of econometric analysis of market power and competition.

Both goals are illustrated with applications to competition policy and competitive strategy.

Upon completion of this course, the student is able to:

- understand the main sources of market power in different market structures

- develop and actively understand econometric analysis of market power and competition.

Previous knowledge

At the beginning of this course the student should have followed:

  • Micro-economics or Managerial Economics and/or Introduction to Industrial Organization
  • Econometrics.

Is included in these courses of study

Activities

6 ects. Industrial Economics (B-KUL-D0M47a)

6 ECTSEnglishFormat: Lecture26 Second term
Verboven Frank
OC Economische wetenschappen FEB Campus Leuven

Content

  • Market power under imperfect competition
  • Market power and conduct
    • Estimating demand and supply models
  • Cartels
  • Market power and product differentiation
    • Estimating oligopoly models with product differention
  • Market power and market structure
    • Estimating entry models
  • Horizontal mergers
    • Merger simulation
  • Special topics
    • Consumer search and market power
    • Vertical relations and bargaining

Course material

Used course material:

  • Slides
  • Readings based on reading list

Toledo is being used for this learning activity.

Evaluation

Evaluation: Industrial Economics (B-KUL-D2M47b)

Type : Partial or continuous assessment with (final) exam during the examination period
Description of evaluation : Written, Skills test
Type of questions : Open questions, Closed questions
Learning material : Calculator

Explanation


Features of the evaluation

The final exam is written and closed-book (no supporting material allowed, except for a calculator).  There is also a  partial evaluation, which consists of completing several (group) problem sets. These problems sets involve empirical analysis, introduced by a tutorial to learn basic tools.

Determination of final grades

The grade is expressed as an integer number between 0 and  20. The partial evaluation (completing problem sets) constitutes 25% of the grade. The final exam constitutes 75% of the grade. 

If the student does not participate in the partial evaluation (completing problem sets) the grade for this will be a 0-grade within the calculations of the final grade. If the student does not participate in the final exam, the grade for the final exam will be a 0-grade within the calculations of the final grade.

If the set deadline for the partial evaluation (completing problem sets) was not respected, the grade fro this partial evaluation will be a 0-grade within the calculation of the final grade.

Information about retaking exams

The final assessment will take into account the (group) assignment (for 25%) if the grade of the retake for this part is higher than the grade of the regular period. Otherwise, the assessment consists only the final retake exam.