INDUSTRIAL ECONOMICS

The course is designed to provide students an introduction to Industrial Organization and to develop abilities to perform case studies and sectoral analysis. Industrial Organization represents the analytical framework for: strategic planning of firms operating in competitive markets; antitrust and competition policy; economic regulation; industrial policy.

This course has no formal prerequisites, but solid background in microeconomics is highly desirable with particular reference to the consumer theory, the theory of cost and the theory of market structure.

Knowledge and understanding: The course aims to provide students with the tools to understand the behaviours of firms, sectors and markets. Students will acquire skills to understand the analytical framework for strategic planning of firms operating in competitive markets from a managerial perspective and to understand micro economics topics such as antitrust and competition policy; economic regulation. Applying knowledge and understanding: At the end of the course, students will be able to understand the foundations of microeconomic underpinning alternative theories of the firm; to connect different theories and apply them to industrial cases and sectoral analyses. Critical thinking: Students will be able to analyze and autonomously assess firms behaviors and the specifics of the industrial systems Communication skills: Students will acquire the communication skills that allow to discuss the theories of the firms and industrial economics. Such skills and the ability to use technical and economic jargon will be assessed through participation in class, discussion of cases, case study analyses and exams. Learning skills: Students will acquire foundational knowledge in micro economics and management that allow them to deepen their knowledge in advanced micro economic courses.

Part 1. Background. 1. The discipline of Industrial Organization. 2. Market economy fundamentals. Foundation and limits. 3. Methodologies: the Harvard School, The Chicago School and recent approaches to industrial organization. 4. Sectors and markets. The relevant market. 5. Theory of the firm. Part 2. Supply-side market structure. 6. Seller concentration and the size distribution of firms. Measures, causes and consequences. 7. Entry barriers. 8. Contestable markets. 9. Vertical integration. Part 3. Firms conducts 10. Oligopoly theory. Collusion. 11. Noncooperative behaviour. Kinky demand curve. 12. Product differentiation. Product quality and innovation. Non-price competition. 13. Price policies. Price-making firms and their strategies. Part 4. Industrial policy. 14. Recent approaches to industrial policy. 15. Productive specialization, structural change, productivity and Kaldor's growth laws. 16. Antitrust and economic regulation.

Carlo Scognamiglio Pasini (CSP.), Economia Industriale, LUISS University Press, 2012, suggested chapters. Dennis W. Carlton e Jeffrey M. Perloff (CP.), Organizzazione industriale, McGraw-Hill, 2013, suggested chapters.

Traditional lectures, seminars and project work.

L’esame prevede una prova orale (80% del voto finale) e la discussione in aula di uno o più casi studio su temi concordati con il docente (20% del voto finale). Presentazione di gruppo (20% del voto finale) Gli studenti dovranno organizzarsi in gruppi di un massimo di 7/8 partecipanti e lavorare insieme alla presentazione di un caso studio su uno degli argomenti svolti a lezione. Dovranno inviare le slides in anticipo e preparare la presentazione orale, che sarà della durata di venti minuti al massimo. Verrà sorteggiato al momento della presentazione chi si farà carico della presentazione orale, fermo restando che il lavoro verrà valutato per tutto il gruppo. Le presentazioni del gruppo saranno tutte in presenza e si concentreranno nella seconda metà del corso. Gli studenti sono invitati a commentare e discutere il lavoro presentato dai colleghi. I docenti valuteranno la presentazione anche in base a domande orali a tutti i membri del gruppo. Le presentazioni verranno valutate sulla base del caso scelto, dell’applicazione delle teorie e nozioni affrontate a lezione sul caso pratico, al dettaglio e completezza della discussione del caso e alle implicazioni per l’economia e la politica industriale. Il voto delle presentazioni non si può rifiutare, e se insufficiente concorrerà al voto finale per il 20%.

None.