INDUSTRIAL ECONOMICS

The course aims to provide students with the tools to understand the behaviors 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 microeconomics 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.

This course requires a background in microeconomics

At the end of the course students will have a good grasp of the microeconomic foundations of managerial disciplines, and the capabilities for analysing the structural characteristics of industries and the main firms’ strategies in the different competitive contexts

Structure, Behaviour and Performance Industry structure Industrial concentration. Measurement issues, causes and consequences Entry barriers Differentiation Diversification Vertical Integration Economies of scale Technological innovation Theories of the firm: managerialism, behaviouralism, evolutionism Italian industry, main features and challenges Industrial policy in Italy

A. Carlo Scognamiglio Pasini, Economia Industriale, LUISS University Press, 2012. As an altrenative to the Scognamiglio's volume the following textbook can be used: J. Lipczynski, J.O.S. Wilson, J. Goddard, Economia Industriale, Pearson, 2016). In addition chapters drawn from: Fagerberg-Mowery-Nelson (2007), Innovazione, Imprese, Industrie, Economie Professors’ slides The teaching material will be available on the platform luiss-learn.

Lezioni frontali, seminari ed esercitazioni, presentazioni di gruppo di casi

The exam includes a presentation of one or more case studies on topics agreed with the teacher (20% of the final grade) and an oral exam (80% of the final grade). Group presentation (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 twenty minutes. The group member in charge of the oral presentation will be drawn at the time of presentation, but the work will be assessed for the whole group. The group presentations will all be in attendance and will focus on the second half of the course. Students are invited to comment and discuss the work presented by colleagues. The teachers will also evaluate the presentation on the basis of oral questions to all members of the group. 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 the implications for the economy and industrial policy. The vote of the presentations cannot be refused, and if insufficient it will contribute to the final vote for 20%. Oral exam (80% of the final grade) - 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%). Failure to achieve an overall average score of 18/30 (taking into account the two scores obtained for the presentation of the case study and the oral exam with weights of 20% and 80%) leads to failure to pass the exam.

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