Course Topics
Origin and development of industrial economics, market structure-market behaviour-market outcome approach, new industrial economics. Monopoly pricing versus price-taking, market power and monopoly pricing, welfare loss, first-degree price discrimination, regulation of a monopolist. Second and third degree price discrimination, monopolist with two goods, monopolistic competition. Fundamentals of game theory, games in extensive and normal form, best responses, dominated strategies, backward induction, Nash equilibrium, mixed strategies, signalling games. Oligopolies: quantity competition, Cournot, Stackelberg, reaction functions, cartels, price competition for homogeneous goods, capacity barriers and product differentiation. Spatial product differentiation, hoteling competition. Barriers to market entry and strategic behaviour: Capacity choice, limit pricing. Competition policy: historical development, case studies, market efficiency and competition, competition law. Innovation economics: research and development, market structure and innovation incentives, patents and strategic behaviour, patent competition, spillover effects and research cooperation. Network externalities and two-sided markets, platforms and pricing.

Teaching format
Lectures and exercises

Educational objectives
ILO (Intended Learning Outcomes) ILO 1 Knowledge and understanding ILO 1.1 Knowledge of the economic theory of demand and supply of goods and services, equilibrium and pricing mechanisms in the market economy ILO 1.2 Knowledge of competition theories in the markets in relation to classical, neoclassical and evolutionary theoretical models ILO 1.3 Knowledge of the basic theorems of welfare economics ILO 1.4 Understanding of the behaviour of microeconomic actors with special consideration of consumption and business theories as well as the application of game theory ILO 1.5 Understanding the effects of digitalisation on economic and entrepreneurial activity ILO 2 Ability to apply knowledge and understanding ILO 2.1 Be able to analyse the demand for goods and services and evaluate the cost structure, its role and importance for business decisions ILO 2.2 Be able to carry out an analysis of the economic behaviour of public and private actors using game theory ILO 3 Making judgements ILO 3.1 recognise the most important problems in complex decision-making situations ILO 3.2 critically analyse the facts and the situations to be dealt with ILO 3.3 select the most appropriate quantitative and qualitative methods of analysis ILO 4 Learning skills ILO 4.1 Obtain information to update the constantly changing general and specific context of reference ILO 4.2 Critically analyse and integrate data, information and future experiences, also using advanced software

Assessment
Final exam: 100% of the course material is tested in the final exam4 ILOs assessed 1 to 4

Evaluation criteria
The grading of the final exam is based on the answers to formal and open questions. The same examination modalities apply to all students (students participating in the course and students not participating in the course).