INDUSTRIAL ORGANIZATION - BMEGT30N002

The main objective of the course is to get students acquainted with the basic theories of different market structures and their potential applications to practical problems related to efficiency, welfare, market strategy and regulation. Both the course material and the recommended textbook are accessible to students without a profound maths background (we use simple algebraic models or basic game theory), but we assume that the students are already familiar with the basic concepts and tools of microeconomics.

1. the main concepts of industrial organization, including the structure-conduct-performance paradigm
2. cost and production functions of multi-product firms, economies of scale and scope (their measurement and impact on market structures), measures of industry concentration
3. basic models of non-cooperative oligopolies (e.g. Cournot, Bertrand and Stackelberg competition)
4. the main concepts of cooperative and non-cooperative strategic behaviour (collusion, mergers, predatory conduct etc.) and some basic models (trigger strategy, limit pricing [Bain-Sylos model])
5. basic models of horizontal product differentiation (models of Chamberlin, Hotelling and Salop)
6. the most important features and ramifications of price discrimination (linear and non-linear pricing), bundling and tying

1. plan and organize independent learning,
2. comprehend and use the professional literature of the topic,
3. grasp the professional language in writing and speech,
4. recognize and solve practical problems.

1. are open to learn and adapt the tools and concepts of industrial organization,
2. collaborate with their instructors and fellow students during the learning process,
3. gain knowledge and information,
4. are open to critical thinking.

1. are open to accept reliable critical remarks,
2. are able to solve practical problems independently.

Lectures and written communication, use of ICT tools and techniques.

• Norman, G., Pepall, L., Richards, D. J., Piacelmélet – Modern megközelítés gyakorlati al-kalmazásokkal. HVG-ORAC Lap- és Könyvkiadó, 2008.
• Az előadások prezentációinak anyaga, ami a félév során folyamatosan fog feltöltésre kerülni.
• Norman, Pepall and Richards, Industrial Organization – Theory and Practice.
• Slideshows of the lectures which will be uploaded continuously during the semester.

Assessment of the learning outcomes described under 2.2. is based on one partial assessment during the term (a presentation) and a summative assessment (written exam) in the examination period.

A. Detailed description of assessments during the term and the examination period: 1. Partial assessment during the term (presentation): In-class presentations (that are required for the ‘Signed’ mark [indicating a student’s eligibility to sign up for an exam]) should not be longer than 15 minutes and they will occur at the beginning of the lectures. Each student must prepare a slideshow and a draft on its analysis that should be submitted before the presentation. 2. Summative assessment during the exam period (written exam): Students take their written end-term test (exam) in the examination period, which consists of multiple choice questions and calculations.

• partial assessment during the term (presentation): 20%
• summative assessment (exam) in the examination period: 80%

1) Late completion of the presentations should be concluded until the end of the late completion period. 2) The exam can be retaken in the examination period (according to the rules of the CoS [Code of Studies]).

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Subject includes the topics detailed in the course syllabus to ensure learning outcomes listed under 2.2. can be achieved. Timing of the topics may be affected by calendar or other circumstances in each semester.

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