Introduction
Applied microeconomics gives you concepts and models to understand and analyze companies' strategic choices when they compete with other companies, and the economic consequences of these. We will deal with companies' strategic choices, such as pricing strategies, quantity competition, entry and cooperation. You will learn how established companies adapt to newcomers, the competitive effects of companies merging, and how companies can cooperate legally and illegally. We will discuss efficiency criteria and the economic justification for competition regulation. Furthermore, the course will address the interaction between innovation and competition, and shed light on issues relating to tenders and privatisation.