00252 - Economics and Industrial Organisation

Learning outcomes

The course takes up some issues in the economic analysis of oligopoly markets. The first part is about theory, and deals with four key topics: (a) cartel formation and collusion; (b) horizontal mergers; (c) price discriminantion and bundling; (d) product differentiation. The second part concerens applications: after a general assessment of  antitrust legislation in Italy and Europe, case studies will be discussed with particular emphasis on the topics covered  in the first part - namely, product differentiation, cartel stability and bundling.

Course contents

First part  (prof C Benassi)

1. Introduction: income effects and the foundations of partial equilibrium analysis;
2. Collusion: incentive, repeated games and optimal punishments;
3. Horizontal mergers;
4. Price Discrimination, bundling and barriers to entry;
5. Product differentiation: basic models; price and quantity competition; preference dispersion.

 

Second part (dr M.F.Esposito)

1. This section is a general introduction to market power, social welfare and the history of antitrust policies; European and Italian legislation, as well as the Italian antitrust procedures will be given some emphasis.
2. This section is focuses on the issues (definition, measurement and assessment) raised by the notions of Dominant position and Relevant market
3. This section focuses on the issues raised by cartel formation and stability.  

 

Readings/Bibliography

First part

X.Vives, Oligopoly pricing: old ideas and new tools, MIT Press, 1999; P.Garella e L.Lambertini, Organizzazione industriale: concorrenza, strategia, regole, Carocci, 2002; B.Nalebuff, Bundling as an entry barrier, Quarterly Journal of Economics, Febbraio 2004.  Further references will be available during classes.  

Second part

Motta M., Polo M.: Antitrust. Economia e Politica della Concorrenza, Il Mulino, 2005. Amendola V., Parcu P.L.: L'antitrust italiano, Utet, 2003 (è una raccolta di casi). Ricchi di casi ma datati sono i due capitoli di Esposito F.M. (La politica della concorrenza nell'esperienza italiana: mercato rilevante e abuso di posizione dominante; intese e concentrazioni) in Del Monte A., Manuale di organizzazione industriale, Utet, 2002. Legal aspects can be perused on Fattori P., Todino M., La disciplina della concorrenza in Italia, Il Mulino, 2004. Further references will be available during classes.

Teaching methods

This is a taught course

Assessment methods

Written test

Office hours

See the website of Corrado Benassi

See the website of Fabio Massimo Esposito