The continuous and rapid development of technologies has led to enormous changes in the marketplace, raising questions about effective competition and new challenges for its regulation, among other issues - from determining market power to the need to promote digital innovation and consumer welfare. By the end of the course, students will have acquired adequate knowledge of the strategic and operational aspects related to the introduction of new business models focused on the use of the Internet and digital technologies.
teacher profile teaching materials
The economy is rapidly evolving, leading to radical changes in the structure of many industrial sectors, which require a solid theoretical foundation for understanding. Therefore, the course is structured into three sections. In the first part, a modern approach to industrial economics will be offered, using tools from game theory. A comprehensive overview will be provided, covering the functioning of various markets. The topics will be systematically explained at the appropriate level of abstraction and generality typical of economic analysis, enriched with numerous examples drawn from real-world economics. The second part focuses on software and music as the two information goods industries that have undergone the most significant recent changes and therefore have dominated public debate. Since the digital economy has given rise to electronic intermediation, the course also considers the impact of e-commerce and intermediation on physical goods markets and the new copyright issues they raise. Finally, the third part of the course will be dedicated to the space economy: it is now evident that the exploration of deep space is becoming increasingly central in all countries, with the proliferation of private actors. The growth of space infrastructure is driving the creation of new services and the development of an increasing number of applications related to meteorology, energy, telecommunications, insurance, transportation, maritime, aviation, and urban development, creating new forms of economy that have direct implications for society. Moreover, space is, and is increasingly becoming, a strategic domain for defense, security, climate change, and connectivity. Therefore, the dynamics of the space economy market and the potential need for new regulations will be presented. The course will be a mix of theoretical analysis and case studies.
Calendar and Topics
Week 1 (Chapter 1 of the textbook and slides)
Introduction to Regulation Theory:
1. Market structure
2. Rent seeking
3. Capture theory
Competition and Monopoly: the two extremes of market performance
Further reading:
- Bianco, M., Giacomelli, S., & Rodano, G. (2012). Competition and regulation in Italy. Banca d'Italia. Questioni di Economia e Finanza, Occasional papers #123
Week 2 (Chapter 5 and 6)
Monopoly Power in Theory and Practice: Price Discrimination
Further reading:
- Arenson, K. W. (1997). "Fordham University to Give Tuition Discounts to Freshmen Who Commute." New York Times, October 22, A18.
- Leslie, P. (2004). Price Discrimination in Broadway Theater, The RAND Journal of Economics, 35(3), 520-541.
Week 3 (Chapter 7)
Oligopoly and Strategic Interaction: Introduction to Game Theory
Further reading:
- Darlin, D. (2005). Falling Costs of Big-Screen TVs to Keep Falling. New York Times, August 20.
- Morrison, S. A., Winston, C., Bailey, E. E., & Carlton, D. W. (1996). Causes and consequences of airline fare wars. Brookings Papers on Economic Activity. Microeconomics, 85-131.
- Maynard, M. (2002). Yes, It Was a Dismal Year for Airlines. Now the Bad News, NY Times.
Week 4 (Chapter 10)
Networks and Regulation Policies
Further reading:
- Niels, G., & Ralston, H. (2021). Two-sided market definition: some common misunderstandings. European Competition Journal, 17(1), 118-133.
- Alt, R. (2022). Electronic Markets on platform dualities. European Competition Journal, 17(1), 118-133.
- Gautier, A., & Lamesch, J. (2021). Mergers in the digital economy. Information Economics and Policy, 54, 100890.
Week 5 (Material distributed by the instructor, available on the course Moodle platform)
Special Topics:
- File sharing and music sales
- Copyright in the digital age
- Bilateral Markets and Electronic Intermediaries
Week 6: (Space Economy Commercialization available on Moodle)
Space Economy: from space exploration to the regulation of property rights and collision liability between economic growth and public benefits
Further reading:
- Denis, G., Alary, D., Pasco, X., Pisot, N., Texier, D., & Toulza, S. (2020). From new space to big space: How commercial space dream is becoming a reality. Acta Astronautica, 166, 431-443.
- European Commission, Directorate-General for Competition, Montjoye, Y., Schweitzer, H., & Crémer, J. (2019). Competition policy for the digital era, Publications Office.
- European Commission, EU Industrial Policy on Space.
ISBN 9781307470765 (Note: This is a text created by McGraw-Hill Education with content drawn from various volumes, assembled for this course. PLEASE PAY ATTENTION TO THE ISBN)
2. Articles provided on the dedicated Moodle platform for the course.
Programme
Course StructureThe economy is rapidly evolving, leading to radical changes in the structure of many industrial sectors, which require a solid theoretical foundation for understanding. Therefore, the course is structured into three sections. In the first part, a modern approach to industrial economics will be offered, using tools from game theory. A comprehensive overview will be provided, covering the functioning of various markets. The topics will be systematically explained at the appropriate level of abstraction and generality typical of economic analysis, enriched with numerous examples drawn from real-world economics. The second part focuses on software and music as the two information goods industries that have undergone the most significant recent changes and therefore have dominated public debate. Since the digital economy has given rise to electronic intermediation, the course also considers the impact of e-commerce and intermediation on physical goods markets and the new copyright issues they raise. Finally, the third part of the course will be dedicated to the space economy: it is now evident that the exploration of deep space is becoming increasingly central in all countries, with the proliferation of private actors. The growth of space infrastructure is driving the creation of new services and the development of an increasing number of applications related to meteorology, energy, telecommunications, insurance, transportation, maritime, aviation, and urban development, creating new forms of economy that have direct implications for society. Moreover, space is, and is increasingly becoming, a strategic domain for defense, security, climate change, and connectivity. Therefore, the dynamics of the space economy market and the potential need for new regulations will be presented. The course will be a mix of theoretical analysis and case studies.
Calendar and Topics
Week 1 (Chapter 1 of the textbook and slides)
Introduction to Regulation Theory:
1. Market structure
2. Rent seeking
3. Capture theory
Competition and Monopoly: the two extremes of market performance
Further reading:
- Bianco, M., Giacomelli, S., & Rodano, G. (2012). Competition and regulation in Italy. Banca d'Italia. Questioni di Economia e Finanza, Occasional papers #123
Week 2 (Chapter 5 and 6)
Monopoly Power in Theory and Practice: Price Discrimination
Further reading:
- Arenson, K. W. (1997). "Fordham University to Give Tuition Discounts to Freshmen Who Commute." New York Times, October 22, A18.
- Leslie, P. (2004). Price Discrimination in Broadway Theater, The RAND Journal of Economics, 35(3), 520-541.
Week 3 (Chapter 7)
Oligopoly and Strategic Interaction: Introduction to Game Theory
Further reading:
- Darlin, D. (2005). Falling Costs of Big-Screen TVs to Keep Falling. New York Times, August 20.
- Morrison, S. A., Winston, C., Bailey, E. E., & Carlton, D. W. (1996). Causes and consequences of airline fare wars. Brookings Papers on Economic Activity. Microeconomics, 85-131.
- Maynard, M. (2002). Yes, It Was a Dismal Year for Airlines. Now the Bad News, NY Times.
Week 4 (Chapter 10)
Networks and Regulation Policies
Further reading:
- Niels, G., & Ralston, H. (2021). Two-sided market definition: some common misunderstandings. European Competition Journal, 17(1), 118-133.
- Alt, R. (2022). Electronic Markets on platform dualities. European Competition Journal, 17(1), 118-133.
- Gautier, A., & Lamesch, J. (2021). Mergers in the digital economy. Information Economics and Policy, 54, 100890.
Week 5 (Material distributed by the instructor, available on the course Moodle platform)
Special Topics:
- File sharing and music sales
- Copyright in the digital age
- Bilateral Markets and Electronic Intermediaries
Week 6: (Space Economy Commercialization available on Moodle)
Space Economy: from space exploration to the regulation of property rights and collision liability between economic growth and public benefits
Further reading:
- Denis, G., Alary, D., Pasco, X., Pisot, N., Texier, D., & Toulza, S. (2020). From new space to big space: How commercial space dream is becoming a reality. Acta Astronautica, 166, 431-443.
- European Commission, Directorate-General for Competition, Montjoye, Y., Schweitzer, H., & Crémer, J. (2019). Competition policy for the digital era, Publications Office.
- European Commission, EU Industrial Policy on Space.
Core Documentation
Monica Auteri (a cura di) Regolazione e Concorrenza nell'era digitale: Mc Graw-Hill Education, Milano.ISBN 9781307470765 (Note: This is a text created by McGraw-Hill Education with content drawn from various volumes, assembled for this course. PLEASE PAY ATTENTION TO THE ISBN)
2. Articles provided on the dedicated Moodle platform for the course.
Attendance
Attendance in the course is highly recommended.Type of evaluation
For attending students, learning will be assessed through in-class presentations on topics covered during the course, followed by the drafting of a paper. Additionally, those who achieve a passing grade will undergo an additional oral examination. For non-attending students, an oral exam covering the entire syllabus is scheduled.