Obiettivi formativi
The objective of the course is to ensure students learn the fundamentals of the law and economics of antitrust and regulation; and of how law and regulations affect economic outcomes by shaping the incentives of economic agents.
Prerequisiti
None
Risultati di apprendimento attesi
The final goal it's to leave students with a robust understanding of these topics that will allow them to actively participates to the frontier economic and policy debates on them, and possibly spot new ideas for their master thesis.
Contenuti Del Corso
The course will be composed of two complementary parts. The first part will be taught by Prof. Spagnolo and will focus on antitrust laws and regulations, and their implementation.
The second part will be taught by Prof. Joao Monteiro, and will focus on.
Depending on time availability and interests of the students, the specific topics will cover most of the themes listed in the weekly program below.
Testi Di Riferimento
Many lectures and background readings will be based on lecture notes/handouts and on specific research papers that we will assign in during the course.
This first part will be dedicated to Antitrust laws and their enforcement.
Course textbooks will be:
1. “Competition Policy: Theory and Practice” by Massimo Motta
http://www.cambridge.org/gb/academic/subjects/economics/industrial-economics/competition-policy-theory-and-practice
2. "Handbook of Antitrust Economics", edited by Paolo Buccirossi https://mitpress.mit.edu/books/handbook-antitrust-economics
Additional papers and cases from the EU DG Comp and US DOJ will be distributed and discussed in class.
This first part will be dedicated to Antitrust laws and their enforcement.
Course textbooks will be:
1. “Competition Policy: Theory and Practice” by Massimo Motta
http://www.cambridge.org/gb/academic/subjects/economics/industrial-economics/competition-policy-theory-and-practice
2. "Handbook of Antitrust Economics", edited by Paolo Buccirossi https://mitpress.mit.edu/books/handbook-antitrust-economics
Metodologie Didattiche
According to the RoME standards.
Modalità di verifica dell'apprendimento
Written exam.
Criteri per l’assegnazione dell’elaborato finale
interest in the subject
Settimana 1
This is an indicative list of arguments that will be covered by the first part of the course. The division in weeks is also purely indicative, as the time dedicated to the various topics and both the order and timing with which we will discuss them may change depending on the interests of the class and the debate they will generate.
The first week will offer some introductory elements: a) Why do we need Regulation and Competition Policy? b) Market power and welfare; c) Market power and market definition. The focus will often be on the novel challenges created by digital markets.
Settimana 2
The second week will have student participating to an experimental market game. The lectures will continue discussing Antitrust laws, but focusing mostly on cartel formation, facilitating factors and practices, and legal standards.
Settimana 3
The third week will then introduce the main methods to detect and deter cartels, both in terms of private and public enforcement, including Leniency Programs.
It will also give an overview on optimal law-enforcement contrasting standard crime wit organized one. Cartels are the closest infringement in antitrust laws to more classic forms of (organized, economic) crime, like corruption, and will be the bridge between Antitrust laws and the wider set of topics included in the scholarly field known as "economics of crime".
There will be also a first lecture on stata and the estimation of cartel damages.
Settimana 4
Week four will continue covering asymmetry-enhancing enforcement tools like leniency, accomplice-witnesses and whistleblowers programs, data-based screens, and their design, pros and cons in the deterrence of organized cartels and other forms of multi-agent economic crime.
There will be also a second lecture on stata and the estimation of cartel damages.
Settimana 5
The fifth week will introduce the concept of dominance and will discuss theories of harm in antitrust with a particular focus on abuses.
It will cover topics on in vertical restraints and vertical mergers. In particular, the topics covered will include: a. Different types of vertical restraints; b. Intra-brand competition: double marginalisation and free-rider problem; c. Inter-brand competition; d. Exclusive dealing; e. Policy implications; f. Vertical mergers; it will discuss various recent antitrust cases.
Settimana 6
The last week we will cover horizontal mergers, and novel topics in antitrust, linked labor markets, digital markets and possibly artificial intelligence.
In the last lecture and students will report on their assignment.
Settimana 7
This week will review the basic econometric tools in applied economics – difference in differences and instrumental variables. In the last lecture, we will start studying the role of institutions.
Settimana 8
This week, we will finish covering the role of institutions and legal systems. We will then cover a variety of topics related to debt contracts: the importance of collateral, the design and implications of bankruptcy laws, the role of mortgages and student debt, and the impact of debt covenants.
Settimana 9
This week, we will study the tools governments use to boost employment and investment. We will focus on tax policy that seeks to boost investment and on industrial policy.
Settimana 10
This week, we will begin by studying bank regulation. We will then study how market power and concentration shape economic outcomes.
Settimana 11
This week, we will study how governments regulate AI and automation.
Settimana 12
This week, we will cover the optimal regulation of immigration. In the last lecture, students will present their research proposal.