INGLESE

Knowledge of basic micro-economy theory (consumer and production theory) is requested, beside that of basic algebra and calculus. Basic is meant as Bachelor level.

The course unfolds through traditional lectures (featuring both theoretical and applied contents), in-class discussions and group works and presentations. In every context and domain, a problem-based learning (PBL) approach is offered as a privileged teaching and learning methodology. The lectures combines a unique mix of theoretical models, exercises and real-world applications (sector and technology analysis and case studies), and make regular usage of the institutional e-learning platform.

Knowledge and Understanding
This course presents in detail mainstream theories of consumer’ and firm’s behaviours, company strategies for innovation and market competition, models of market dynamics, and selected topics of market regulation and antitrust. Further, real-world applications privilege the study of high-tech companies and markets (mostly drawn from Information and Communication Technologies, such as computing, telecom, Internet and TV; but also pharmaceuticals, biotech, etc.), beside studying the techno-economic characteristics of their products and services (for eg.: mobile phones, connected TV, online advertising, social networks, molecules and medical equipment, etc.). To sum up, students are given cutting-edge analytical skills to understand and interpret the drivers of innovation, competition and market dynamics in fast-moving high tech sectors, to formulate appropriate strategies of managerial action, and to perform sound policy-making.

Theories are presented and studied with the aim to be applied to understand real word business examples and strategic problems. At the end, students will be able to use qualitative and quantitative tools (including software) to understand, for eg.: what drives the consumer’s willingness to pay for a product and its price demand elasticity, how can a firm render is product a closer substitute for an existing one, how to calculate a cost minimizing input mix, which markets more closely resemble perfect competition, how to regulate a market dominant firm and to contrast collusion, how Internet intermediaries enable perfect price discrimination of the consumer, how market foreclose of rivals is enacted. These skills are relevant for both private and public corporation managers, and also for public executives and officials, such as functionaries working in antitrust and regulatory authorities, or in Government bodies responsible for market regulation and socio-economic policy-making.

Thanks to the usage of the PBL method and the applied orientation of the course, students are expected to develop their critical judgment and problem solving skills. This will concern both the general analytical skills, and the specific ones needed to carry out market analyses and consequent strategic action. Further, students are requested to develop the ability to act in interdisciplinary contexts of analysis, where economics is conjugated with business studies, technological analysis and the appreciation of the normative sphere of the economy (for eg: contract law, antitrust and regulation). Finally, due to the interactive teaching and learning method proposed, students are continuously stimulated to improve their personal communication and presentation skills, while unleashing their pro-social (cooperation) attitudes and group-work abilities.

Theory.
Part I. Consumers, firms and markets: fundamental notions
Part II. Oligopoly: game theory, models of strategic behaviour and market power
Part III. Entry, exit, mergers and market foreclosure
Part IV. Topics in Antitrust and Regulation
Part V. Markets with network effects
Applications.
Empirical applications (exercises, problems, market/business cases discussions, etc.) are carried out during classes on a regular and continuous basis, together with theory, in line with the PBL method: hence, they are not functionally organized nor presented as separated. Periodic assignments may be given to attending students.

Assessment is done with one hour written exam, potentially featuring open questions, exercises, problems and case studies. Attending students performing PBL activities have an additional grade component.

To pass the exam, students must give evidence of their ability to master theoretical tools, to apply them to the solution of the presented evidence (exercises, problems, etc.), and to do all this with logical rigour and ability of synthetic and effective communication.

The student passes the exam if the final grade is above 18/30. Cum laude can be bestowed to outstanding performance, reached on all the previous assessment criteria.

The final grade is given by weighting and averaging the results of the written exam. Each item (whether an open question, exercise, etc.) is valued on the continuous 1-10 scale (with 6,0 being the sufficiency level), and then weighted and summed. Then, the final grade is calculated rescaling the obtained average to the 18-30 interval.

Cabral, L. M. (2017), Industrial Organization, MIT Press, Cambridge and London. II edition.
“Dispensa” prepared by the professor: updated collection of empirical evidence on markets and technologies, business problems and antitrust and regulatory cases.
The final reading list for those students regularly attending the lectures and participating to the PBL activities might present some modifications/focuses.

http://lms.econ.univpm.it/course/view.php?id=247