Base Knowledge
Basic knowledge of microeconomics and quantitative methods.
Teaching Methodologies
The classes will be in-person with a theoretical explanation of the subjects and Exercises application.
The students working groups will be supervised during classes along the trimester.
Learning Results
The student should understand the main models describing the structure and the operation of industrial
markets. The student will be exposed to structural analysis methodologies that enable him/her to formulate
strategies in companies as well as plans to respond to the deliberations of economic regulators.
Program
I – Perfect Competition
1.1 When is a market highly competitive?
1.2 Profit maximization
1.3 Marginal Revenue, Marginal Cost and Profit Maximization
1.4 Choosing output in the short run – the competitive firm’s short-run supply curve
1.5 The short-run market supply curve
1.6 The efficiency of a competitive market
II- Monopoly
2.1 Average Revenue and Marginal Revenue
2.2 The monopolist’s output decision
2.3 Profit maximization
2.4 Measuring monopoly power
2.5 Sources of monopoly power and natural monopoly
2.6 The social costs of monopoly power
2.7 The price discrimination
III – Monopolistic Competition Oligopoly
3.1 The characteristics of monopolistic competition
3.2 Equilibrium in the short run and the long run
3.3 Monopolistic competition and economic efficiency
3.4 Comparison of monopolistically competitive equilibrium and perfectly competitive equilibrium
IV Oligopoly
4.1 Equilibrium in an oligopolistic market: the Nash equilibrium
4.2 The Cournot model
4.3 First mover advantage—the Stackelberg Model
4.4 The price competition and homogeneous products – the Bertrand Model.
4.5 Cartels: analysis of cartel pricing
4.6 The OPEC oil cartel
V – Network Economies
5.1 Networking externalities
5.2 Market with networking externalities
5.3 The demand curve as a parable
5.4 Market dynamics
5.5 Networking externalities and their implications
Curricular Unit Teachers
Internship(s)
NAO
Bibliography
– Buccirossi, P. (2008), Handbook of Antitrust Economics, The MIT Press.
– Cabral, L. (2017), “Introduction to Industrial Organization”, 2nd edition,The MIT press
–Frank, R. H. (2013 )“Microeconomia e Comportamento””, McGraw-Hill 8ª ed.
–Frank, R. H. (2021 )“Microeconomics and Behavior”, McGraw-Hill 10th ed.
– Mateus, A. e Mateus, M. (2001), Microeconomia: Teoria e Aplicações- Volume II, Editorial Verbo.
– Mateus, A., (2021), “A Regulação em Portugal: Como os portugueses pagaram 82 milhões de Euros pelas más políticas”, Alêtheia Editores
– Pepall, L., Richards, D. e Norman, G. (2014), Industrial Organization – Contemporary Theory and Empirical
Applications, 5th edition, Blackwell Publishing
–Pindyck, R. and Rubinfeld, D., (2018), “Microeconomics”, 9th edition, Pearson
– Varian, H., (2019) ” Intermediate Microeconomics: A Modern Approach” 9th edition, Media Update
– Viscusi, W., Vernon, J. e Harrington, J. (2018), “Economics of Regulation and Antitrust”, 5th edition, The MIT Press.
Slides de apoio às aulas
Folhas de Exercícios