CODE 98227 ACADEMIC YEAR 2025/2026 CREDITS 4 cfu anno 1 ENGINEERING TECHNOLOGY FOR STRATEGY AND SECURITY 11994 (LM/DS) - GENOVA SCIENTIFIC DISCIPLINARY SECTOR SECS-P/01 LANGUAGE English TEACHING LOCATION GENOVA SEMESTER 2° Semester OVERVIEW This subject addresses central aspects of Industrial Economics and Economic Policy. Its first part focuses on the theoretical, i.e., mathematical and conceptual, models that are used to classify markets in terms of their structural features. Price setting strategies will be illustrated in the second part, which will be followed by relevant topics in competition policy, with reference to EU antitrust cases. AIMS AND CONTENT LEARNING OUTCOMES The subject aims to provide fundamental concepts of Economics, Monopoly & Oligopoly Models, Basic Consumer Theory as well as Game Theory applied to these fields. Price setting strategies will be illustrated to highlight the importance of economic analysis to understand realistic business situations. AIMS AND LEARNING OUTCOMES On completion of the subject, the students will have acquired a thorough understanding of the dynamics of the competitive process involving strategic players, as well as the rationales that underpin the intervention of Antitrust Agencies. In particular, students will: Learn how to solve the mathematical models used to describe the competitive process in different market structures; Acquire the knowledge of Game Theory methods to analyze how strategic interaction shapes the nature of the market characteristics; Develop a knowledge of the variety of business strategies and learn to recognize them in real competitive scenarios; Communicate effectively their knowledge by familiarizing with the technical jargon that is used in professional economic analysis; Strengthen their ability to establish and maintain an ongoing learning process that builds on the knowledge acquired from this subject; Become autonomous and independent users of the conceptual and operative methods illustrated in the subject. PREREQUISITES Prior knowledge of Microeconomics and Mathematical Optimization is useful, but not compulsory. TEACHING METHODS Teaching is organized in class or online lectures. Students will be encouraged to discuss the business tactics that the Instructor will propose SYLLABUS/CONTENT Part 1: Market Structures Perfect Competition; Monopoly; Elements of Game Theory; Oligopoly: static and dynamic models, with and without differentiated products; Monopolistic competition with Address models. Identifying and Assessing Market Power: methods for Market definition; The Structure-Conduct-Performance paradigm and its latest developments (Sutton’s Exogenous and Endogenous Sunk Costs). Part 2 – Business Practices Pricing strategies: First, Second, Third Degree Price Discrimination; using Two-Part Tariffs to price discriminate; Using Bundling and Tie-in sales to price discriminate; Intertemporal Price Discrimination. Price dispersion: the role of search and switching costs. Market with Network goods. Part 3 – Strategic Behaviour and Competition Policy Price Fixing (horizontal agreements): Cartels and the Sustainability of Tacit Collusion; identifying Collusion; Factors that facilitate Collusion. Horizontal Mergers: Unilateral Effects (excessive increase in market power); Coordinated effects; Merger Remedies (Divestitures, behavioural); Merger Policy in the EU. Case Studies. Vertical Integration and Mergers: Exclusionary effects; Vertical Price Restraints; Non-Price Vertical Restraints. RECOMMENDED READING/BIBLIOGRAPHY Belleflamme, P. and Peitz, M. (2015). Industrial Organization. Markets and Strategies. Cambridge University Press, Cambridge, UK. Carlton, D. and Perloff, J. 2005. Modern Industrial Organization, Pearson Davis, P. and Garces, E. (2010). Quantitative Techniques for Competition and Antitrust Analysis. Princeton University Press, Princeton, NJ USA. Motta, M. (2004). Competition Policy. Theory and Practice. Cambridge University Press, Cambridge, UK. Pepall, Richards, Norma, Industrial Organization: Contemporary Theory and Empirical Applications. fifth edition, Blackwell Publishing, 2013. Pepall, Richards, Norman, Calzolari, Organizzazione Industriale, McGraw Hill, III edizione, 2017. TEACHERS AND EXAM BOARD CLAUDIO ANTONIO GIUSEPPE PIGA Ricevimento: Claudio A. Piga (claudio.piga@unige.it) Office Hours: TUESDAY 10.30 -12.30 (Teams or, prior appointment, in Office at DIEC) LESSONS LESSONS START February at the sstart of the second semester of the academic year Class schedule The timetable for this course is available here: Portale EasyAcademy EXAMS EXAM DESCRIPTION Written, calendar specified on EasyAcademy The exam consists of open-ended questions as well as numeric exercises.
