Industrial organization

Financial mathematics, First Cycle
3 year
Course director:

Assoc. Prof. Matej Švigelj, Prof. Jelena Zorić

Lecturer (contact person):

Assoc. Prof. Matej Švigelj, Prof. Jelena Zorić

Hours per week – 1. semester:
Content (Syllabus outline)
  1. Technology and market structure
    1.1. Classic monopoly and multi-product monopoly
    1.2. Basic game theory
    1.3. Oligopolistic markets
  2. Predation – maintaining market power
  3. Market segmentation
    3.1. Product differentiation
    3.2. Price discrimination
  4. Collusive behavior and cartels
    4.1. Dynamic oligopoly models
    4.2. Cartels
    4.3. Mergers
  5. Vertical relations and in constraints

Pepall Lynne, Richard Daniel J., Norman George: Industrial Organization: Contemporary Theory and Practice, 3rd. ed., South-Western - Thomson Learning, 2005. ISBN 0-324-26130-6
Tirole Jean: The Theory of Industrial Organization, The MIT Press, 1988. ISBN 0-262-20071-6

Objectives and competences

Enable students to recognize market structures and their properties, the causes that gave rise to these structures, and strategies that firms use to retain or develop their positions within the structures.

Intended learning outcomes

Learning the broad matter of market structure analysis and the factors that affect it with tools of microeconomic partial equilibrium models and game theory.
Learning about how market circumstances are affected by market size, technological properties, type of competition and government's activities.
Learning about the conflict between incentives of competitive firms and social welfare.

Learning and teaching methods

Ex catedra lectures and solving numeric cases


Two written midterm tests, 50% of the final grade each, or final written exam for 100% of the grade.

Lecturer's references

Matej Švigelj:

  • PREDOVNIK, Anže, ŠVIGELJ, Matej. The impact of implicit electricity market coupling on the Slovenian Austrian border on the efficiency of cross-border transmission capacity allocation and social welfare in Slovenia. Economic and business review, ISSN 1580-0466. [Tiskana izd.], 2017, vol. 19, iss. 2, str. 131-154, doi: 10.15458/85451.47. [COBISS-SI-ID 24233446]

  • HROVATIN, Nevenka, ŠVIGELJ, Matej. The interplay of regulation and other drivers of NGN deployment : a real-world perspective.Telecommunications policy, ISSN 0308-5961. [Print ed.], nov. 2013, vol. 37, iss. 10, str. 836-848, tabele; graf. prikazi, doi:10.1016/j.telpol.2013.05.007. [COBISS-SI-ID 21560806]

  • HROVATIN, Nevenka, CIBIC, Damir, ŠVIGELJ, Matej. Deployment of the fibre network in Slovenia : what can be learnt?. Transformations in business & economics, ISSN 1648-4460, 2013, vol. 12, no. 1 (28), str. 182-205. [COBISS-SI-ID 21467366]

  • ŠVIGELJ, Matej, HROVATIN, Nevenka. Network effects and choice of mobile operator in Slovenia. E+M : ekonomie a management, ISSN 1212-3609, 2011, vol. 14, no. 3, str. 87-99. [COBISS-SI-ID 20307686]

  • HROVATIN, Nevenka, CIBIC, Damir, ŠVIGELJ, Matej. Liberalisation and (de)regulation of Slovenian telecommunications markets. Communications & stratégies, ISSN 1157-8637, 2004, iss. 56, str. 151-177. [COBISS-SI-ID 15057126]

Jelena Zorić:

  • HROVATIN, Nevenka, DOLŠAK, Nives, ZORIĆ, Jelena. Factors impacting investments in energy efficiency and clean technologies : empirical evidence from Slovenian manufacturing firms. Journal of cleaner production, ISSN 0959-6526. 2016, vol. 127, str. 475-486 [COBISS-SI-ID 23054822].

  • RIHAR, Miha, HROVATIN, Nevenka, ZORIĆ, Jelena. Household valuation of smart-home functionalities in Slovenia. Utilities policy, ISSN 0957-1787. Apr. 2015, vol. 33, str. 42-53 [COBISS-SI-ID 22405350].

  • FILIPPINI, Massimo, HUNT, Lester C., ZORIĆ, Jelena. Impact of energy policy instruments on the estimated level of underlying energy efficiency in the EU residential sector. Energy policy, ISSN 0301-4215. Jun. 2014, vol. 69, str. 73-81 [COBISS-SI-ID 21971430].

  • CIRMAN, Andreja, MANDIČ, Srna, ZORIĆ, Jelena. Decisions to renovate : identifying key determinants in Central and Eastern European post-socialist countries. Urban studies, ISSN 0042-0980, Dec. 2013, vol. 50, no. 16, str. 3378-3393 [COBISS-SI-ID 21527014].