INDUSTRIAL ECONOMICS

The course is designed to provide students with an introduction to the fundamental issues of Industrial Economics, an analysis of the logic of firms’ behaviour through a survey of most prominent theories of the firm, and an interpretive framework of the evolutionary logic of manufacturing, both at the global level and with reference to the Italian context.

This course has no formal prerequisites, but solid background in microeconomics is required.

Knowledge and understanding: The course aims to provide students with the tools to understand the behaviour of firms, sectors and markets. Applying knowledge and understanding: At the end of the course, students will be able to understand the microeconomic foundations of 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’ behaviour and the specifics of the industrial systems Communication skills: Students will acquire the ability to use technical and economic jargon and the communication skills that allow to discuss the economic analysis of the firms and their strategies. Such skills and 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.

Economies of scale Vertical Integration Industrial concentration. Entry barriers Differentiation Diversification Theories of the firm: managerialism, behaviouralism, evolutionism Technological innovation Firm growth Industrialisation and de-industrialisation Multinationals firms and Foreign Direct Investments World industrial development in the Globalization Age Italian industry

John Lipczynski, John O. Wilson, John Goddard, Economia industriale. Pearson, 2016, suggested chapters. Other sources gradually uploaded on the Luiss-Learn platform

Traditional Lectures, seminars and case studies

The exam includes an oral test (80% of the final grade) preceded by a classroom discussion of one or more case studies on topics agreed with the teacher (20% of the final grade). Students will have to organize themselves in groups of a maximum of 7/8 participants and work together to present a case study on one of the topics covered in class. They will have to send the slides in advance and prepare the oral presentation, which will last no more than 15 minutes. Who will be in charge of the oral presentation will be drawn at the time of presentation, it being understood that the teachers will also evaluate the presentation on the basis of oral questions to all members of the group. The group presentations will all be in attendance and will focus on the second half of the course. The presentations will be evaluated on the basis of the case chosen, the application of the theories and concepts addressed in class on the practical case, the detail and completeness of the discussion of the case and their policy implications. The vote of the presentations cannot be refused. Students will be assessed on the basis of: knowledge of the main theories and models indicated in the program (40%), ability to connect the different topics covered (30%), ability to apply the topics studied to examples and cases (20%), ability to use technical-economic terminology appropriately (10%) The sum of the evaluation obtained in the oral test and in the discussion of the case involves the attribution of a score of 30/30 with the attribution of honors. Failure to achieve a score of 18/30 involves, on the contrary, failure to pass the exam.

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