Industrial Economics and Policy
A.Y. 2023/2024
Learning objectives
The course aims to provide students with a basic knowledge of the main theoretical foundations of industrial economics and of principles of industrial policy. It focuses on the study of companies and markets' structure, organisation, strategies, and performance. It provides the theoretical knowledge to reach an understanding of the determinants of industrial structure (e.g. company size, concentration of market shares, ), and its effects on market efficiency and consumer welfare. Further, industrial policy rationale, objectives and main tools are presented and analysed.
Expected learning outcomes
At the end of the course students are expected to acquire:
1. Knowledge and understanding of:
- basic concepts related to market structure and neoclassical theory;
- market structures, starting from those developed by the neoclassical theory and then widening the analysis to include collusive and non-collusive oligopolistic models;
- product differentiation and price strategies;
- definition of industrial policy, rationale for industrial policy, market failures and government failures; other policy objectives.
2. Application skills:
- ability to formalize economic environments making use of the theoretical concepts of modern industrial economic theory and policy;
- analyse the dynamics of industrial development in a policy perspective;
- analyse in a critical way the strategic choices of firms and their impact on the sectoral competitive dynamics;
- evaluate government policies in terms of market failures and government failures.
1. Knowledge and understanding of:
- basic concepts related to market structure and neoclassical theory;
- market structures, starting from those developed by the neoclassical theory and then widening the analysis to include collusive and non-collusive oligopolistic models;
- product differentiation and price strategies;
- definition of industrial policy, rationale for industrial policy, market failures and government failures; other policy objectives.
2. Application skills:
- ability to formalize economic environments making use of the theoretical concepts of modern industrial economic theory and policy;
- analyse the dynamics of industrial development in a policy perspective;
- analyse in a critical way the strategic choices of firms and their impact on the sectoral competitive dynamics;
- evaluate government policies in terms of market failures and government failures.
Lesson period: First semester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
First semester
Course syllabus
Part 1: introductory concepts and review of microeconomics elements
- Introduction to industrial economics and policy: concepts and object of analysis.
- Review of basic microeconomic concepts: demand and supply functions; consumer and producer surplus; the short run, the long run, the very long run; the profit maximization condition in the long run; barriers to entry and barriers to exit.
- Market structures: perfect competition, monopoly, oligopoly (collusive and non-collusive models); Measures of market concentration.
Part 2: industrial economics
- Firms' strategies in the market.
- Analysis of firm strategies to maximize profits: market concentration, barriers to entry, pricing strategies, product differentiation, R&D, mergers and alliances, vertical integration.
Part 3: industrial policy
- Evolution of industrial policy
- Rationale for public intervention: market failures and antitrust policies; externalities; public goods; information asymmetries; non competitive markets.
- Competition policies and consumers' protection policies.
- Introduction to industrial economics and policy: concepts and object of analysis.
- Review of basic microeconomic concepts: demand and supply functions; consumer and producer surplus; the short run, the long run, the very long run; the profit maximization condition in the long run; barriers to entry and barriers to exit.
- Market structures: perfect competition, monopoly, oligopoly (collusive and non-collusive models); Measures of market concentration.
Part 2: industrial economics
- Firms' strategies in the market.
- Analysis of firm strategies to maximize profits: market concentration, barriers to entry, pricing strategies, product differentiation, R&D, mergers and alliances, vertical integration.
Part 3: industrial policy
- Evolution of industrial policy
- Rationale for public intervention: market failures and antitrust policies; externalities; public goods; information asymmetries; non competitive markets.
- Competition policies and consumers' protection policies.
Prerequisites for admission
Economia Politica
Teaching methods
Class lectures.
Teaching Resources
Di Tommaso M.R., Rubini L., Barbieri E. e Tassinari M. (2021), Economia e politica industriale: Organizzazione della produzione, innovazione e politiche di interesse pubblico, Bologna, Il Mulino.
Additional teaching material (i.e. lectures slides) will be uploaded on the ARIEL website during the course.
Additional teaching material (i.e. lectures slides) will be uploaded on the ARIEL website during the course.
Assessment methods and Criteria
Exams will be in written form only, following the official exams calendar, and consist of open questions.
Students attending the course can choose to take the exam in two partial assessments during the course semester (a mid-term exam and a final exam), each one weighting 50% of the overall examination mark. Detailed information on the written exams and on partial assessments will be provided during the course.
The final mark is expressed out of 30. The pass mark is 18/30. The maximum mark is 30/30 cum laude.
Students attending the course can choose to take the exam in two partial assessments during the course semester (a mid-term exam and a final exam), each one weighting 50% of the overall examination mark. Detailed information on the written exams and on partial assessments will be provided during the course.
The final mark is expressed out of 30. The pass mark is 18/30. The maximum mark is 30/30 cum laude.
Educational website(s)
Professor(s)
Reception:
wednesdays, 11-12
MS Teams - upon appointment by email