85071 - Economics Of Competition

Learning outcomes

The course provides an introduction to the economics of antitrust. With the use of basic tools of industrial organization, we will analyze the main aspects of competition policy, such as collusive agreements, mergers, vertical restraints and abuse of dominance. These issues will be discussed also with reference to recent antitrust cases. Students will actively participate by studying and discussing case studies. At the end of the course, students will be able to critically interpret the main policy issues in the field of antitrust

Course contents

Main reference: Massimo Motta, "Competition Policy: Theory and Practice", Cambridge University Press, 2004.

MODULE 1 (Elena Argentesi)

1. Introduction to competition policy: definition, history, and the law (Chapter 1)

• Definition of competition policy
• History of competition policy in the EU and in the US
• Objectives of competition policy

2. Market power and welfare (chapter 2 except paragraphs 2.3.2.2, 2.3.5,2.4.3, 2.6.3.4)

• Definition of market power
• Allocative efficiency, productive efficiency, and dynamic efficiency
• Public policies and incentives to innovate

3. Market definition and assessment of market power (chapter 3)

4. Collusion: an economic definition (chapter 4 except par. 5)

• The sustainability of collusion in a repeated game
• Factors that facilitate collusion
• Competition policies against collusion

5. Horizontal mergers (chapter 5)

• Unilateral effects
• Pro-collusive effects
• Countervailing factors
  
• Remedies: structural and behavioral remedies
• Merger policy in the EU

6. Vertical restraints and vertical mergers (chapter 6)

• Intra-brand competition
• Inter-brand competition
• Anti-competitive effects

7. Abusive practices (chapter 7)

• Predatory pricing and rebates
  
• Abuse of dominance in digital markets

8. Competition and regulation in digital markets

9. Discussion of antitrust cases
Students will be required to study and discuss selected antitrust cases during class. Each case will be assigned to a small group of students for presentation and discussion. These case discussions will account for 50% of the final grade. All cases will be made available on the Virtuale platform. Non-attending students will be required to answer questions on one case of their choice during the final exam.

MODULE 2 (Alessia Marrazzo)

This module will be focused on the presentation and on the discussion of some recent case studies on the topics of Module 1.

Readings/Bibliography

Massimo Motta, "Competition Policy: Theory and Practice", Cambridge University Press, 2004.

Additional materials will be made available on the Virtuale platform.

Teaching methods

The course consists of lectures, case discussions and presentations by students, and occasionally presentations by external experts.

Assessment methods

Assessment will be based on a written exam and the students' in-class discussion of antitrust cases. Non-attending students will be required to answer questions about one case of their choice as part of the written exam. The final grade will be calculated as a weighted average: 50% from the written exam and 50% from the case presentation.

Teaching tools

Lecture slides will be available on the Virtuale platform. Case studies will also be assigned during the course.

Office hours

See the website of Elena Argentesi

See the website of Alessia Marrazzo