MPE_SOEK Competition Economics

Faculty of Economics and Administration
Spring 2012
Extent and Intensity
1/1/0. 6 credit(s). Type of Completion: zk (examination).
Ing. Milan Brouček (lecturer)
Ing. Daniel Donath, Ph.D. (lecturer), Ing. Milan Brouček (deputy)
Ing. Milan Brouček (seminar tutor)
Ing. Daniel Donath, Ph.D. (seminar tutor), Ing. Milan Brouček (deputy)
Ing. Bc. Petr Juriga (assistant)
Guaranteed by
doc. Ing. Martin Kvizda, Ph.D.
Department of Economics - Faculty of Economics and Administration
Contact Person: Lydie Pravdová
Supplier department: Department of Economics - Faculty of Economics and Administration
Thu 16:20–17:05 S310
  • Timetable of Seminar Groups:
MPE_SOEK/01: Thu 17:10–17:55 S310, M. Brouček, P. Juriga
It is assumed that students have completed the courses of Economic policy 1 and 2, Macroeconomics 2 and Microeconomics 2. The course of Competition Law is an advantage.
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 25 student(s).
Current registration and enrolment status: enrolled: 1/25, only registered: 0/25, only registered with preference (fields directly associated with the programme): 0/25
fields of study / plans the course is directly associated with
Course objectives
In this course, students will learn about the competition economics and about the economic approach to competition policy and competition cases. The course is structured according to individual topics of competition policy. Theoretical approach is supplemented with case studies for each topic. After finishing this course, students will be able to apply the economic framework to the problems of competition policy. They will be able to discuss the problems of relevant market definition and determination of market power of undertakings. They will be able to list the main consequences and possible solutions of the following situations: i) horizontal and non-horizontal mergers (the emphasis is placed on horizontal mergers), ii) horizontal agreements (emphasis is placed on cartels), iii) abuse of dominance (the emphasis is on the unilateral abusive exclusionary conduct) and iv) vertical agreements. Students will be able to explain the use of quantitative and qualitative methods for analyzing the main issues of competition policy. They will be also able to explain the difference between the approaches in the US and EU jurisdiction. The course has the form of lectures and seminars. In the lectures, the emphasis will be placed on the theoretical bases of competition policy. Empirical cases will be discussed in the seminars.

Learning outcomes:
* understanding of the basic and more advanced issues of (more) economic approach to competition policy;
* microeconomics analysis of the cases and conduct impeding effective competition;
* comprehension and analysis of the costs and benefits of (different approaches to) competition policy.
  • Introduction
  • The framework of economic analysis (total and consumer surplus, allocative and productive efficiency, market structure, market failures). Economic approach and traditional (formal) approach to competition policy.
  • 1. Relevant market definition and the assessment of market power – 4 lessons
  • a. The hypothetical monopolist test, SSNIP test
  • b. The relevant product and geographical market
  • c. Qualitative and quantitative methods
  • d. The role of market shares and market concentration
  • e. Lerner index
  • 2. Horizontal and non-horizontal mergers – 4 lessons
  • a. Unilateral effects
  • b. Coordinated effects
  • c. Synergies/efficiencies, Remedies
  • d. UPP index
  • 3. Non-horizontal mergers – 2 lessons
  • a. Input foreclosure
  • b. Customer foreclosure
  • c. Synergies/efficiencies, Remedies
  • 4. Horizontal relationships – 4 lessons
  • a. Cartels and tacit collusion
  • b. Exchange of information
  • c. Other agreements
  • 5. Unilateral foreclosure practices – 4 lessons
  • a. Analysis of dominant position and the concept of abuse of dominance
  • b. Exclusionary conduct (predatory pricing, refusal to deal, margin squeeze, rebates, tying and bundling, price discrimination)
  • c. Excessive pricing
  • d. Significant economic position and the concept of the abuse of market power
  • 6. Vertical agreements
  • a. Resale price maintenance (RPM)
  • b. Exclusivity
    required literature
  • MOTTA, Massimo. Competition policy : theory and practice. 1st ed. Cambridge: Cambridge University Press, 2004. xxiii, 616. ISBN 9780521016919. info
  • TIROLE, Jean. The theory of industrial organization. Cambridge, Mass.: MIT Press, 1988. xii, 479. ISBN 0262200716. info
    recommended literature
  • O'DONOGHUE, Robert and Jorge A. PADILLA. The law and economics of article 82 EC. 1st pub. Oxford: Hart publishing, 2006. lxvii, 782. ISBN 184113502X. info
  • DAVIS, Peter J. and Eliana GARCÉS. Quantitative techniques for competition and antitrust analysis. Princeton: Princeton University Press, 2010. xi, 580. ISBN 9780691142579. info
Teaching methods
The lectures and discussion seminars will be based on individual readings of primary sources.
Assessment methods
During the semester, students will actively discuss given problems on seminars. The course is completed by the written exam.
Language of instruction
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
Credit evaluation note: k=2.
Listed among pre-requisites of other courses
The course is also listed under the following terms Autumn 2012, Spring 2013, Spring 2014, Spring 2015, Spring 2016, Spring 2017, Spring 2018, Spring 2019, Spring 2020, Spring 2021.
  • Enrolment Statistics (Spring 2012, recent)
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