Learning objectives

The aim of the course is to provide students with rigorous economic tools for the analysis of competition and regulation policies. We will analyse and discuss the economic motivations underlying public intervention for regulation of markets with particular interest on the analysis of the main regulatory tools to promote competition for the markets. The main part of the course will focus on the analysis of auctions and procurement mechanisms. The analysis will be develloped from the theoretical point of view with attention to empirical evidence and study cases. At completion of the course, students should be able to: (i) Understand and evaluate critically the justifications for the public intervention in the regulation of markets and promotion of competition. (ii) Analyse and assess rigorously the economic implications of auction and procurement mechanisms for allocation of resources and contracts and for access to markets.

Prerequisites and basic notions

No prior knowledge is compulsorily required. Basic concepts of microeconomics and strategic interaction will be resumed during the course.

Program

The program is divided into three parts.
The first two part are the main ones.
Part I The economics of auctions and procurement:
- Introduction to the tools for the analysis of strategic interaction
- Applications to the analysis of auctions and procurement with particular attention to the analysis of public tenders
Part II Market regulation and tariffs
- Relation between market power, efficiency, social welfare and natural monopoly
- Economic analysis of regulatory mechanisms.
A detailed outline of the course together with indications of additional teaching material, lecture notes, specimen exam questions and example of exercises will be made available on-line during the lectures period, on the University e-learning website.

Bibliography

Didactic methods

The teaching methods will cover lectures and exercises solutions.
During the lectures in class attention will be devoted to the discussion of the topics with the students, the analysis of examples and case studies, the solution of exercises and the illustration of the main prescriprtions of the italian procurement laws .

Learning assessment procedures

The final assessment is based on a written exam.
Exam questions and exercises will cover the topics discussed in the program of the course.
Students could supplement the final assessment with the evaluation of a project work on specific topics of the course. The project work will include a presentation and the submission of an essay.

Evaluation criteria

In the final written exam students should be able to demonstrate:
- Understanding and mastering of the relevant aspects of game theory and their application to the analysis of strategic behaviour of firms. In particular students should be able to apply these concepts to both numerical problems and case studies related to the definition of optimal pricing and quality strategies for firms in general auctions or procurement auctions.
- To be able to presenting their arguments rigorously in a limited amount of time by identifying and selecting the relevant aspects to focus on.
- To have acquired appropriate competence on the issues discussed in the module, so that to be able to apply the related concepts to the analysis of case studies.

Criteria for the composition of the final grade

The overall grade will result from the sum of the evaluations of the questions presented in the written test. The weight of the various questions will be indicated in the exam.

Exam language

italiano

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