Knowledge and understanding The course aims at enabling the students to analyze and interpret the interaction among firms, the interaction between firms and consumers and to understand the role played by the policies designed by the antitrust authority and by the regulatory bodies (transport, energy, media), both at the national and at the European and international level. Topics covered in the course are useful not only for academic research, but also in private enterprises, including financial and legal institutions; in state and regional regulatory agencies; and in international trade. Apply knowledge and understanding Case studies dealing with current business or policy issues will be analyzed either individually or by groups of students who will be required to produce a research report on the topic assigned. The research project will be based on the theoretical models and the analytical tools illustrated during the course. In the final exam students will be required to describe the implications that different market structures, firms’ strategies, and policy interventions produce on the market equilibrium and on the stakeholders’ surplus. Making judgements The research project assigned will require students to foresee the impact that the firms’ strategies rather than the decisions of the policy maker will produce on the consumers’ surplus, the producers’ surplus and/or the social welfare. Communication skills The development of the research report and the presentation of the research project will develop and improve the students’ ability to find and organize research resources; write essays; analyze data; prepare PPT; present the results of their research activities. Learning Skills At the end of the course the student will be able to critically interpret and analyze the strategic behavior of the firms, the impacts produced by the strategies adopted on the involved stakeholders (consumers, competitors) and the rationale of the market regulation.

Microeconomics is a mandatory prerequisite. The student should be comfortable with applying Calculus, Algebra, Optimization.

The aim of the course is to study how to model and empirically analyze markets characterized by strategic interaction among firms. The course focuses on the theory of the firm and of the industry, with an emphasis on oligopoly theory, including oligopoly pricing and production, strategic entry deterrence, anticompetitive strategies, product differentiation, and contractual relations between firms. More specifically the following topics will be analyzed: Fundamentals of Microeconomics. Competition, Monopoly, Efficiency, Technology and Costs, Market power, Price discrimination, Product differentiation, Oligopoly and strategic interaction. Price and quantity competition, Static versus dynamic competition. Anticompetitive strategies: Price strategies (limiting pricing, predatory pricing), Collusion. Regulation and antitrust. Contractual relations among firms: Horizontal and vertical mergers, Vertical restrains. Network externalities and two sided markets.

Lipczynski, J., Wilson, J., Goddard, J. (2009) Industrial Organization. Competition, Strategy, Policy, Prentice Hall, Pearson Education. Pepall, L., Richards, D., Norman, G. Industrial organization, Contemporary theory and empirical applications, Blackwell Publishing, 4 ed. The slides of the course and additional material (articles, working papers, list of websites and research resources to be used to prepare reports and economic analysis) will be posted in moodle.

Basic Microeconomics. Market structure and market power. Cost functions. The neoclassical theory of the firm. Regulation of natural monopoly. Price discrimination and monopoly: linear and non-linear pricing. Product variety and quality under monopoly (Lancaster, Hotelling, Salop). Game theory. Static and dynamic games dealing with quantity (Cournot and Stackelberg) and with price (Bertrand and Edgeworth). Limit pricing. Predatory pricing. Collusion and antitrust. Horizontal, vertical and conglomerate mergers. Concentration: measurement and trends, determinants and barriers to entry. Vertical restrains. Market regulation. Network externalities and two-sided markets.

Lectures; Presentation of case studies; Research reports; Workshops; Homework.

The slides of the course and additional material (articles, research resources, reports) will be posted on the moodle website of the course. The course is taught in English.

The written exam will count for 80% of the grade. The exam is structured in two parts: the first part is aimed at assessing the knowledge of theoretical models and economic principles outlined during the course, the second part is focused on the application of the same models and principles to solve problems and to analyze selected case studies. The exam will include open-ended questions and exercises. Students will be allowed to take partial tests as an alternative to the final exam; in this case each intermediate test must be positively evaluated (18/30) to pass the exam. A research report and presentation will count for 10% of the grade. A case study dealing with current business or policy issues will be assigned to students who will be required to write a research report. Homework assigned weekly on the topics described during the lectures will count for 10% of the grade. Any changes to the methods described here will be communicated in the Moodle website of the course and during the lectures.

The course explores topics closely related to one or more of the goals of the UN's 2030 Agenda for Sustainable Development (SDGs).