78361 - Competition in Tourism Markets

Learning outcomes

The purpose of this course is to introduce students to economic tools for understanding competition in tourist markets, both from a theoretical and an empirical point of view. At the of the course, students will be able to i) make sense of tourist firms' choices concerning pricing, product characteristics, innovation and advertising, with a particular attention to the international dimension of competition; ii) evaluate the social consequences of these choices, and judge public policies aimed at improving the market outcomes.

Course contents

The course covers key topics in the field of applied microeconomics and industrial organization, aimed at understanding business strategies. It is structured into two modules: the first is more theoretical, while the second focuses more on specific applications in the fields of tourism, hospitality, and public transportation.

Module 1 (prof. Bolatto):

1. Market regimes and imperfect competition
2. Oligopoly theory, strategic interaction and sequential vs. simultaneous games
3. Product differentiation strategies (localized competition, horizontal differentiation and vertical differentiation)
4. Price discrimination: group/personalized pricing vs. menu pricing
5. Non-price competition: advertising and marketing strategies
6. Asymmetric information (moral hazard, adverse selection) and signaling tools (price and advertising)

Module 2 (TBD):

1. Pure and mixed bundling strategies (es. holiday packages)
2. Intertemporal price discrimination, clearance sales and introductory offers
3. Market intermediation: vertical contracts and dealers
4. Applications to destination management, hospitality and public transportation

Readings/Bibliography

Belleflamme, Paul, and Martin Peitz, “Industrial organization: markets and strategies”, Cambridge University Press, 2015.

Additional material will be distributed in class, or uploaded on the web page of this course on Moodle (www.virtuale.unibo.it ).

Teaching methods

Module 1: traditional lectures throughout, yet allowing room for interaction between students and the instructor.

Module 2: mixed teaching approach combining traditional lectures with homework assignments and small group works in form of in-class presentations (to be held during the final lectures of the course).

Assessment methods

Module 1: The course assessment will take place as closed-book written exam in the Rimini Campus computer laboratory. Students will complete the examination through the EOL application platform. The exam consists of an open-ended question (related to one of the course topics), plus a series of multiple-choice questions covering all other relevant topics.

This exam can be taken during the midterm (at the end of Module 1) or during any of the three official examination dates scheduled for the academic year.

 

Module 2: The evaluation for this second part of the course will be based on both:

• a short closed-book written exam, to be taken according to the same procedures provided for the exam related to module 1 (although limited to a smaller number of questions)
• a small group presentation, based on the reading of a scholarly work assigned by the instructor to each group of students (consisting of 2 or 3 members) and related to one of the topics covered in either Module 1 or Module 2.
  

 

The final grade (out of 30) for this exam will then be determined as follows:

50% - Score obtained on the written exam for Module 1

25% - Score obtained on the written exam for Module 2

25% - Evaluation of the in-class presentation

Additional bonus points may be awarded to attending students who demonstrate active participation and engagement in class discussions.

Students who are not satisfied with their final grade or who do not achieve a passing grade overall will have the opportunity to retake the exam during one of the three dates scheduled for the academic year. In such cases, students may choose whether to retake the exam on both parts of the program or only on one, depending on the score achieved for each module.

In accordance with university regulations, each student has the right to reject a grade equal to or higher than 18/30 and retake the exam. However, this option can be exercised only once, regardless of whether the student decides to retake the exam on the entire program or on just one of the two modules.

Teaching tools

All teaching materials will be uploaded on the course page on the Moodle platform (www.virtuale.unibo.it )

Office hours

See the website of Stefano Antonio Bolatto

See the website of Elias Carroni