B2221 - INDUSTRIAL POLICIES AND ANTITRUST

Learning outcomes

After taking the course, the student is expected to be able to use formal instruments to appreciate the interplay between firms' strategic interaction and the regulator's task, consisting in the optimal design of both antitrust and environmental policies, whose reciprocal alignment is not systematically granted as market competition does not go hand in hand with the preservation of the environment.

Course contents

The course analyses the environmental impact of production and consumption in oligopoly (with monopoly and perfect competition as limit cases), and the relationship between (i) market power and green innovation and (ii) competition policy and environmental policy.

To this aim, the course will propose extensions of static models encompassing Cournot and Bertrand competition (and their collusive versions) hosting environmental regulation tools such as emission taxes, standards and trading systems.

The issues discussed in the course will include the following:

1. Is there a ranking across the aforementioned range of environmental policies?

2. How intense is the impact of industry structure and the nature of market competition (either in prices or in quantities) on the investment in research and development delivering abatement or replacement technologies?

3. May we achieve the the net zero emission target by correctly stimulating firms' reaction along the technological dimension?

4. May we expect to see a validation of the win-win solution, as impliedby the strong version of the Porter hypothesis?

5. May Environmental Corporate Social Responsibility (ECSR) and green consumerism sustain and eventually replace the regulator's action?

Readings/Bibliography

The course id supported by slides,which, in general, refer to the material contained in chapters 1-6 of the book:

 

Lambertini, L. (2013), Oligopoly, the Environment and Natural Resources, Routledge, London,

 

with a few extensions concerning recent publications which will be suggested in class.

Teaching methods

Class lectures, plus remote video connection, if needed, depending on circumstances. Formal analysis of existing models. All mathematical aspects will be illustrated in class.

Students will become familiar with the construction of basic theoretical models and the selective addition of ingredients required for the analysis of extensions and applications, as well as the resulting normative implications.

Assessment methods

The exam has the objective of verifying the candidate's knowledge of theoretical concepts as well as her/his ability to interpret policy implications.

The exam can be taken in two different forms:

I. A written exam in class, 2 h. The text includes 4 questions, each granting at most 10 points. The candidate may choose any 3 out of 4.

II. A written exam in class, 1 h and 20'. The text is the same but the candidate is supposed to answer 2 questions and complete the exam with an essay on a specific theme chosen in agreement with the teacher.

The maximum possible score is 30 cum laude, in case all anwers are correct, complete and formally rigorous.

The grade is graduated as follows:

<18 failed
18-23 sufficient
24-27 good
28-30 very good
30 cum laude excellent

Teaching tools

The slides used during the course will appear in its web page, together with the link to the video of each lecture as soon as it becomes available (if any). The material for essays will be chosen on a case by case basis.

Office hours

See the website of Luca Lambertini