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 framework for European industrial policies - 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, and innovation taxonomies. 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

Lectures, data exercises, class discussions, group work presentations.

1/3 group work 2/3 oral examination

Interest for the course Coherence between the proposal and the content of the course