COMPETITION ECONOMICS

Università degli Studi
"G. d'Annunzio"

Chieti - Pescara

Single discipline educational activity

Course Sheet

Course code:

000119L

Academic Year of enrolment:

2018

Year of supply:

2020/2021

Type of Course:

Characterising

Degree:

Course of 1st Cycle Degree in BUSINESS ADMINISTRATION

Disciplinary Sector:

Applied Economics

Location:

PESCARA

Credits:

Programme Year:

Professor and Collaborators:

ACERBO STEFANIA

Cycle:

Second semester

Hours of classroom activity:

Individual study hours:

102

Prerequisites:

None

Objectives

EDUCATIONAL TARGETS
The objective of the course is to provide students with the theoretical and technical tools needed to understand market functioning as well as regulation and antitrust intervention. The aim is to increase the level of understanding of the institutional and economic contexts, and to provide conceptual tools to analyse economic phenomena at the micro level.

LEARNING OUTCOMES

KNOWLEDGE AND UNDERSTANDING
At the end of the course students will possess the information and cognitive tools for:-the assessment of the competition level as well as of the sectoral efficiency performance levels- the assessment of the impact of firms’ behaviours on the competition level of the sector which they belong to- analyzing the trade-offs between static and dynamic efficiency, as well as agents’ rational incentives schemes understanding the way the institutional and regulatory frameworks affect agents’ behaviours

APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course students will be able to:- identify/develop connections between microeconomic views of the behaviour of single firms and the competitive features of the sector which they belong to- apply theoretical and applied knowledge to the identification of the main competitive criticalities through case studies

COMMUNICATION SKILLS
The following communication skills will be acquired by students at the end of the course:- understand the relationships between economic and legal languages concerning the analysis of antitrust and regulatory issues- outline and discuss antitrust cases, interacting with others in order to identify arguments in favor of and against the verdict of the antitrust authority

Contents

1. The Italian and the European antitrust laws.
2. Static and dynamic characteristics of imperfectly competitive market structures.
3. The relevant market and the abuse of the dominant position.
4. Collusion.
5. Abusive and exclusionary behaviours.
6. Hints of economic regulation.

Extended Syllabus

1. Introduction, (i): what antitrust policy is about; the differences between antitrust and economic regulation
2. Introduction, (ii): market power and social welfare. Allocative, production and dynamic efficiency
3. Quantitative issues: how to define the relevant market and how to measure market power
4. Horizontal agreements: collusion, tools for its identification and prevention; pro-competitive horizontal agreements, joint-ventures in R&D, “standard-setting organizations” and “licensing pools”
5. Horizontal concentrations: trade-off between efficiency and market power
6. Vertical agreements and concentrations
7. Price disciìrimination and the objective of market integration in the EU law;
8. Abusive practices:
8.1. Exclusive contracts;
8.2. Discriminatory practices;
8.3. Predatory pricing;
8.4. “Tying” and “bundling”;
8.5. “Price squeeze”, “refusal to deal” and interoperability;
8.6. Excessive pricing.

Recommended Bibliography

Motta, M. e M. Polo (2005), Anttrust. Economia e Politica della Concorrenza, ed. Il Mulino, Bologna. Possible other teaching materials will be distributed during class.

Methods of Provision

Conventional

Teaching Methods

Frontal classes and case studies.Frontal classes will revolve around the theoretical topics and will be held by the teacher, with the occasional participation of business experts. Case studies will be discussed by groups of maximum 5/6 students, in order for them to develop the ability to apply the acquired knowledge to real settings as well as to properly communicate/present the results of their work. Attendance is on a voluntary basis, but it is strongly encouraged. Only pupils attending classes can participate into group works.

Evaluation methods

Verification of learning:

Final examination: OralModalities for learning verification: learning verification is based on an oral examination, through 2/3 questions aimed at assessing students’ knowledge of the teaching material, independence and communication skills. Particular attention will be paid to the appropriateness of the language used, the ability to connect several topics and critically conduct a dialogue on the topics proposed by the teacher. The final grade is based on a 30-point scale. In case of students that have participated in group works, the verification will also concern the presentation of the work.

Contacts/More Information

None

Università degli Studi
"G. d'Annunzio"

Chieti - Pescara

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