Industrial economics and policy

Degree course: 
Corso di First cycle degree in SCIENZE DEL TURISMO
Academic year when starting the degree: 
2019/2020
Year: 
2
Academic year in which the course will be held: 
2020/2021
Course type: 
Compulsory subjects, characteristic of the class
Credits: 
8
Period: 
First Semester
Standard lectures hours: 
50
Detail of lecture’s hours: 
Lesson (50 hours)
Requirements: 

Economics I represents a prerequisite for this course. It is also required the knowledge of the basic principles of elementary mathematics.

Final Examination: 
Orale

The exam will be only oral, very likely still on the we at least for the first session, that of January-February 2021, according to the exam calendar that will be published afterwards. The exam will aim at assessing the student's reasoning ability in economic terms and his/her ability on scientific rigor and math and econ language on the course topics.

Assessment: 
Voto Finale

Course Aims and Expected Learning Results

Aim of the course is that of providing who is already familiar with the basic principles of Economics with a more advanced study in microeconomics and in particular on firms, industries, markets and on market powered firms' strategic interactions on markets. We offer the opportunity to the attending student to study more in depth market situations typical of tourism and very famous market powered firms' strategies like price discrimination, vertical relations and contracts used in the relationships between manufacturers and retailers; product differentiation and advertising; entry deterrence strategies and coping with potential competition. In the last part of the course we will study european antitrust principles and those regarding the state aids intervention. Some well-known antitrust and state aids intervention cases will be studied.
We expect that, at the end of the course, the student be familiar with the typical market contests of the tourism industry and their expected outcomes. Furthermore we expect that the student be familiar at the end of the course with the main european antitrust and state aids intervention principles and their economic implications and be able to apply these principles in a specific case treated in the successive professional work.

Course Topics and Program
The following topics will be studied in class and are part of the course program: classic oligopoly models: Bertrand, Cournot and Stackelberg (8 hours);Price discrimination (8 hours); Vertical relations between firms (8 hours) Product differentiation: Hotelling model (6 hours); advertising and the Dorfman-Steiner model (3 hours); potential competition and entry deterrence strategies (3 hours); european antitrust and state aids intervention principles; a comparison with the U.S ones; some case studies. (8 hours)
Furthermore, at the beginning of the course, we will spend 2 hours on introductory concepts and definitions and 4 hours in recalling perfect competition and monopoly.

Textbook
L.Cabral, Industrial Economics, Carocci, New Edition, Rome,2018. Chapters: 1-8 and 12-14.

Teaching methods
There will be 50 hours of lectures given by the professor in charge for the course. In the academic year 2020-21, still due to Covid Emergency, lectures will take place on the web, partly through PowerPoint presentations with audio and partly through lectures on Teams.

The professor can communicate with students individually through Teams on demand by asking for an appointment by writing at: giuseppe.colangelo@uninsubria.it