Competition Policy
Pedro Pita Barros
Moodle password: 2128fall2025
Course aims: The objective of this course is to apply microeconomic concepts and tools to the issues of Competition Policy. Besides the theoretical analysis of the questions involved, attention will be devoted to policy issues, and to the approaches followed in the EU and Portugal. Questions that students should be able to answer at the end of the course: What is Competition Policy? Why is the exercise of monopoly power a problem? What is a relevant market? How does the SSNIP (hypothetical monopolist) test work? How to identify a dominant position? How can it be measured? What are the anti-competitive effects of vertical restraints? When do vertical restraints improve welfare? Can vertical restraints limit entry of rivals? Why are cartels bad? How can we break up cartels? What does it mean to have predatory pricing? When do mergers reduce welfare?
The course provides an economics analysis, rooted in economic theory, of the main business practices scrutinised by Competition Authorities.
Before enrolling in this course, please, check your knowledge on required micro-economic concepts by answering the following set of questions: verify your prior knowledge.
Important notes: This is NOT a course on competitive strategy. The course requires knowledge of microeconomic analysis at intermediate level. You should be able to solve market equilibrium oligopoly models (see below pre-course readings). Students are required to read extra class. Slides from lectures are NOT a complete replacement for such readings. This is NOT a case-based course. This is NOT a course about statistics of economic sectors.
.
- Teacher: Pedro Barros