INDUSTRIAL ORGANIZATION

The course aims at providing students with the basic knowledge about models of competition, market power, market and industrial structures and their principal characteristics. We will investigate particularly imperfectly competitive markets and collusive and non-collusive behaviors. The course will focus also on firms’ strategies in relation to market interaction and competition. We will dig into the evolution of theories of the firm to understand the relation that links market structure, firm strategies, and performances. We will focus on studies that carefully consider the specificity of industrial and territorial contexts, the specificity of the Italian economy and the main production organization. Some key antitrust regulations and policies for competition and development will be treated, particularly in relation to digitalization and sustainability paths.

1. Knowledge and understanding
By the end of the course students should be able to gain a conceptual framework about imperfect market structures and oligopolistic behaviors, and develop a theoretical overview of key industrial organization structures and their interdependence with micro behaviors.

2. Ability to apply knowledge and understanding
By the end of the course students will be able to analyze key aspects of (and differences among) the main typologies of market models, apply and understand the use of different industrial classification schemes, frame firms’ strategies within specific industrial and territorial contexts and critically identify the effect that policies may have for firms belonging to specific industries or markets.
Students will also learn how to adapt theories to real situation using case studies developed by group work.

3. Ability to judge
By the end of the course students will be able to critically assess the degree of competition that can be reached in a specific market/industry, the advantages and disadvantages of firms when operating alone or within networks of firms, evaluate the impact of digitization processes and of sustainability issues for firms belonging to specific industries.

4. Communication skills
By the end of the course students will learn how to present and discuss specific cases using critical thinking applied to the key arguments addressed during the course. Given the presence of international students with different cultural and disciplinary background, groupwork will increase the opportunity to share and communicate ideas in a heterogenous environment.

Having passed Microeconomics is compulsory to access the exam of Industrial Organization (see the propaedeutic exams)

- Evolution of industrial organization theories and the new industrial organization approach
- Typologies of market structure (from perfect competition models to imperfect competition)
- Collusive and non-collusive forms of competition
- The specificity of the Industrial and contextual environment (characteristics and typologies of sectors, agglomeration economies)
- The evolution of firms' strategies within market structures
- The new strategic assets: sustainability and digitalization
- Vertical and horizontal integration within industries
- Antitrust regulation and policies for competition and development

Main text: Lipczynski, J., Wilson, J.O.S, Goddard, J., 2017. Industrial Organization: Competition, Strategy and Policy, 5th edition. Pearson

Further information related to the referral text (e.g. chapters) and other readings will be provided during class. Information will be posted on MOODLE as well

Written exam: multiple-choice questions and open questions

Evaluation criteria for students participating in group works: Written exam (50 percent of the final grade) and group works (50 percent of the final grade)
Evaluation criteria for all the other students: Written exam (100 percent of the final grade)

Group assignments will be evaluated based on the following aspects:
- Completeness and congruence in relation to the assigned task
- Correctness
- Capacity for critical and analytical thinking
- Quality and reliability of statistics and references and how they have been used in carrying out the assigned task.
For the written exam: Multiple-choice questions are worth a maximum of 20 points. The remaining points will be allocated to open-ended questions.

Regarding the grading scale:
A. Scores in the range of 18-22 are awarded when there is:
- Sufficient knowledge and understanding in relation to the program.
- Ability (although limited) to apply knowledge and evaluate proposed cases or scenarios, or analyse data, formulating independent judgments.
- Sufficient communication skills, especially concerning the use of specific economic language, are displayed.

B. Scores in the range of 23-26 are awarded when:
- Fair knowledge and understanding in relation to the program.
- Fair ability to apply knowledge and evaluate proposed cases or scenarios, or analyse data, formulating independent judgments.
- Fair communication skills, especially concerning the use of specific economic language, are displayed.

C. Scores in the range of 27-30 are awarded when:
- Good or excellent knowledge and understanding in relation to the program
- Good or excellent ability to apply knowledge and evaluate proposed cases or scenarios, or analyse data, formulating independent judgments.
- Good or excellent communication skills, especially concerning the use of specific economic language, are displayed.

D. Honors are awarded when excellent knowledge and understanding applied in relation to the program, excellent judgment capacity, and communication skills are demonstrated

The course is held on campus. The course includes front lectures and workshops with group presentation and discussion.

Draft Programme. The programme may be subject to changes

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