26033 Competition Economics, 5 cr
This course presents a modern approach to competition economics with an emphasis on selected elements of strategic competition and on European competition policy. The participants are expected to have some knowledge of elementary models associated with the economics of strategy (game theory and oligopoly models). The course will focus on the following issues:
- the definition of a relevant market
- horizontal agreements, collusion and the enforcement of cartel laws
- vertical agreements
- concerted practices with a particular focus on the exchange of information between competitors
- evaluations of mergers, in particular horizontal mergers
- business practices in light of the prohibition to abuse market dominance
- strategic creation of switching costs and loyalty-enhancing pricing strategies
- price discrimination with a particular focus on history-based pricing
- individualized pricing and privacy
- the relationship between competition policy and sector-specific regulation.
The course is linked to the contemporary legal framework in Europe, but is not a course in competition law. The course will present topical European competition cases and present an overview of the main methods used to evaluate competition policy cases.
You are acquainted with the central features of European competition law and its implementation from a theoretical as well as an empirical perspective.
• design business strategies and pricing for firms in recognition of the central constraints imposed by competition law.
• conduct market analysis in recognition of the central constraints imposed by competition law.
A completed intermediate level course in microeconomics.
134 hours divided into
Scheduled (contact) hours: 30 h
Non-scheduled work: 104 h
Lectures 30 h, exercises, cases
- Motta, M. (2004). Competition Policy: Theory and practice. Cambridge: Cambridge University Press. Chapters 3-7.
- Belleflamme P. & M. Peitz (2015). Industrial Organization: Markets and Strategies. Second Edition. Cambridge: Cambridge University Press. Chapters 7-10, 14 and 15.
Final exam 100 %
Students who have completed the earlier course Competition Policy (6 ECTS, course code 2687) cannot take this course.
Open university quota: 3
Quota for JOO-students: 3