Industrial Organization
Winter 2024.
Taught by
Régis Renault (Chapters 1-4 and Topic 4): regis.renault@cyu.fr
Alessandro Ispano (Topic 1) alessandro.ispano@cyu.fr
Jérôme Pouyet (Topic 2) pouyet@essec.edu
Wilfried Sand-Zanttman (Topic 3)
Text: Tirole J.; “The Theory of Industrial Organization”, MIT Press, 1988.
Other reading material
[1} Anderson, S. P., and R. Renault, "Firm pricing with consumer search."
prepared for the Handbook of Game Theory and Industrial Organization, Luis Coirchon and Marco Marini eds, Edward Elgar, 2017. Download
[2} Armstrong M., "Ordered consumer search".Download.
Course outline
January 11: Chapter 1 Product selection, quality and advertising (Tirole: chapter 2). SLIDES
Product space. Choice of quality. Choice of diversity. Moral hazard and lemmons. Signaling.
January 18: Chapter 2 Price discrimination (Tirole. Chapter 3) SLIDES
Perfect price discrimination. Third degree price discrimination. Using two-part tariffs to screen consumers. An introduction to vertical restraints.
January 25: Chapter 3 Price competition. (Tirole, chapter 5 and 6) SLIDES
Bertrand paradox. Capacity constraints and Bertrand-Edgeworth competition. Cournot competition. An introduction to cartels and mergers.
February 1st 8: Chapter 4 Product differentiation and non-price competition. (Tirole, chapter 7). OLD SLIDES
Product choice. Two much or two little product diversity? Localized and non localized competition. Informative advertising.
February 15; Topic 1 Quality disclosure. A Ispano.
February 29; Topic 2 Vertical relations. J. Pouyet.
March 14; Topic 3 Privacy issues in the digital economy. W. Sand
March 19, 21; Topic 4 Consumer search and market competition. R. Renault (Readings [1]) SLIDES
Problem sets.
Problem set 1, due Monday Feb. 5. (Prior to doing Problems 1 and 2, read Empirical IO Chapter 1 sections 2 and 3.)
Problem set 2, due Fridy March 1st.