This course offers an introduction to general topics in the theory of industrial organisations. This area of economics deals with the relationship between markets and enterprises, how certain markets and industries function, and how companies compete with one another.
Special attention is paid to strategic behaviour of companies. More specifically, the course deals extensively with models of competition, strategic product positioning, advertising, Research and Development… Imperfect competition between companies also receives due attention.
In addition, the course considers models that can explain the industrial structure (e.g. entry and exit).
When do companies possess market power? How can companies acquire and retain market power? What are the economic consequences of the existence of market power? Is there room for government intervention with a view to increasing public welfare?