INDUSTRIAL DYNAMIC

This class introduces advanced management students to selected contributions in modern economic theory that deals with market structure and industrial dynamics. Seminal papers will be presented and discussed during classes.

Basic principles of Industrial Economics and Statistics are required. In more detail, Industrial Economics: i) consumer and firm theory; ii) competition and efficiency; iii) monopoly and regulation; iv) oligopoly competition; v) collusion; vi) market structure. Textbook Cabral L. (2017) Introduction to Industrial Organization, MIT Press Statistics: i) sample and population; ii) variables grouped data and histograms; iii) measures of central tendency; iv) measures of dispersion; v) correlation. Textbook Newbold P., Carlson, W.L., Thorne, B., Statistics, Chapter 2.

1) Knowledge and Understanding: At the end of the course students will be able : - to understand market structure and dynamics of the main industries. - to understand the firm behaviour and its evolution over time. - to understand the specific characteristics of the Italian industrial system (industrial districts, networks and social innovation) - to develop capabilities for the strategic analysis. 2) Applying knowledge and understanding: The student will be able: - to perform empirical analyses on structure and evolution of industries, on firm heterogeneities within and between industrie ; - to perform policy evaluation studies of industrial policies and regulation; These goals will be achieved by means of class exercises and work group evaluation. 3) Making judgements: We expect students to be able to make judgements upon the validity and effectiveness of the industrial policies. 4) Communications Skills Through classes exercises and work group presentations the students will be able to communicate their ideas, proposals, analysis and critical reasoning. 5) Learning skills The complementarity between the theoretical knowledge and the know-how students accumulate during the class excercises and work group allow them to acquire those dynamic capabilities useful for their career.

This course deals with market structure and industrial dynamics. Gibrat Law, market structure, determinants of entry and exit, and industry life-cycle will be discussed in the first part of the course. Afterwards, we turn to entrepreneurial theories, sectoral patterns of innovation and fourth industrial revolution technologies. Many of these topics will be complemented by class exercises.

Dinamiche Industriali di Francesca Lotti e Valentina Meliciani, Il Mulino editore. Other material used during the lectures and summarized in the slides Reading material indicated below is for deepening your knowledge but it is not compulsory

The course consists of lectures, class discussion, exercises, and on group-works that will be presented in class at the end of the course.

The overall assessment for students attending class combines an evaluation of group work which accounts for the 33% of the final grade and a final oral exame accounting for 67% . Group Work (33%): the discussion will start from the tenth week on. Each group has 30 minutes for presentation and each student has to prepare 3 slides. Both collective work and individual work will be evaluated (20% and 13%, respectively). Oral exam (67%), 3 questions. The exam will last about 15 minutes. All grades will be on a range from 0 to 30 to which the weights above apply. For non-attending students the rules are as follows: Oral exam (100%) 4 questions, 30 minutes in total (range 0-30) The program will be: the whole course program The book “La nuova rivoluzione delle macchine” di Andrew McAfee e Erik Brynjolfsson, 2017, Feltrinelli. The paper Economia Digitale, Riccardo Cristadoro, Banca d’Italia, (2019), downloadable at https://www.bancaditalia.it/pubblicazioni/focus-on/2019/FocusOn_1_2019.pdf

In general, an interest in the subject. From a master's degree student we expect: 1) ability to propose a thesis that can be traced back to the topics or the tools presented during the course; 2) ability to conduct quantitative analyses; 3) initiative and critical thinking when using data and bibliographical resources.