Teaching code

4S00509

Teacher

Angelo Zago

Coordinator

Angelo Zago

Credits

9

Language

Italian

Scientific Disciplinary Sector (SSD)

SECS-P/01 - ECONOMICS

Period

Primo semestre (lauree) dal Sep 25, 2023 al Jan 19, 2024.

Courses Single

Authorized

Lessons timetable Moodle Seminars 0

Learning objectives

The main purpose of the course is the economic analysis of firms, and in particular their interaction with competitors, suppliers, customers, consumers, the regulator, as it might be inspired by real cases. The main objective is to train students for a critical reading of these economic phenomena and of the relevant economic sectoral policies. The course investigates firms’ choices using the tools of microeconomics and game theory. In particular, special emphasis is placed on choices regarding price discrimination, product differentiation and innovation, on the relationships with suppliers and the distribution, on online platforms, to see how these choices can modify business environment and the business models available and followed by firms. It is an applied course designed for students interested in the functioning of firms and who will then pursue managerial or consultant positions. The discussion will then be motivated and accompanied by the study of business and other cases, of productive sectors and of major economic policies, as in the tradition of Economics departments of major Business Schools. ALL classes and tutorials will be in ITALIAN.

Prerequisites and basic notions

Having attended the course of Microeconomics

Program

The course program includes the following topics:
- Basic concepts: the basics of microeconomics, market structure and market power, technology and production costs.
- The monopoly power in theory and practice: price discrimination and monopoly; linear and nonlinear prices; variety and product quality in monopoly.
- Oligopoly and strategic interactions: Static Games and Cournot competition; price competition (Bertrand); dynamic games; first and second mover advantage.
- Anticompetitive strategies: limit-pricing and entry deterrence; price-fixing and repeated games; collusion: how to identify and defeat it.
- Contractual relations between firms: horizontal mergers, vertical restraints.
- Non-pricing competition: advertising, market power, competition and information; research & development; patents.
- Networks: network issues.

Bibliography

Didactic methods

The adopted teaching methods consist of:
- lectures, through which the main theoretical concepts are explained,
- exercises, to apply theoretical knowledge,
- discussions of business cases, to relate theory with business strategies,
- participation to a 'competitive game' of competition between companies (Competitive Strategy Game), to learn how to work in a team and apply the concepts learned in a dynamic and stimulating context.
During the course there will be interventions by some company representatives and / or qualified operators.
Office hours by the teacher are available throughout the academic year. The content of the textbook, slides and tutorials are part of the program. Further teaching material is available on the teaching e-learning platform.

Learning assessment procedures

Consistently with the course content, the final exam includes a WRITTEN examination in which the student is asked:
a) to solve analytically some exercises,
b) to answer to multiple choice questions on the theory, and c) to answer a question related to economic news, that is to critically comment current events related to the economic topics of the course.
An INTERMEDIATE exam is planned, and it will weight 50% of the written exam.

Evaluation criteria

Moreover, students are required to prepare an ESSAY (CASE STUDY) on the business model in an international context of a firm of their choice, developing a document of about 1,000 words which must be submitted on the day of the examination. Case studies can be carried out in groups ranging from 2 to 4 students. Each student must be part of one and only one group.
Last but not least, students will have the opportunity to participate in the COMPETITIVE STRATEGY GAME. Developed by the Haas School of Business of the University of Berkeley (USA), it allows groups of student to compete in entering different markets.

Criteria for the composition of the final grade

For the overall grade of the exam, therefore, any bonuses determined as follows can be added to the grade of the written exam:
i) essay (or case study) - compulsory. The evaluation of the essay takes place on a scale of thirty, which leads to the following bonuses: if insufficient (<18/30), -1 points; if 18-20/30, 0 points; if 21-23/30, points 1; if 24-26 out of thirty, points 2; if 27-30 out of thirty, points 3.
ii) Competitive Strategy Game - on a voluntary basis. It entitles you to 1-3 points, depending on a) constant participation (1 point), b) preparation of an adequate report (1 point), and c) victory in your group (1 point).
In summary, the FINAL VOTE therefore includes:
1. the grade obtained in the written test,
2. the score assigned to the compulsory case study,
3. a possible bonus for the optional Competitive Strategy Game.
BONUS DURATION All bonuses are valid for the four exam sessions of the academic year 2023-24, i.e., up to and including the Fall 2024 session.

Exam language

Italiano