BUSINESSES AND MARKETS

Single discipline educational activity

Course Sheet

Course code:

000383L

Academic Year of enrolment:

2019

Year of supply:

2020/2021

Type of Course:

Characterising

Degree:

Course of 2nd Cycle Degree in ECONOMICS AND COMMERCE

Disciplinary Sector:

Applied Economics

Location:

PESCARA

Credits:

Programme Year:

Professor and Collaborators:

DI BERARDINO CLAUDIO

Cycle:

First semester

Hours of classroom activity:

Individual study hours:

153

Prerequisites:

None

Objectives

EDUCATIONAL TARGETS
The objective of the course is to provide students with the theoretical and technical tools needed to: understand firms’ organizational and market choices; identify and analyze the ways through which firms’ internal organization and competitive strategies interact with market structures and assess such iterative process. Particular attention is paid to factors such as incomplete information, transaction costs, mechanisms used by firms to move the competitive pressure to elements other than prices; deepen the ways of public intervention in the economy to deal with market failures.

EXPECTED LEARNING OUTCOMES

KNOWLEDGE AND UNDERSTANDING
At the end of the course students will possess the information and cognitive tools for:-the assessment of the competition level as well as of the sectoral efficiency performance levels- the assessment of the impact of firms’ behaviours on the competition level of the sector which they belong to evaluate the effects of firms’ strategic behaviours

APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course students will be able to:
- identify/develop connections between microeconomic views of the behaviour of single firms and the competitive features of the sector which they belong to- apply theoretical and applied knowledge to the identification of the main criticalities related to imperfect competition.

COMMUNICATION SKILLS
The following communication skills will be acquired by students at the end of the course:
- properly use the economic terminology
- rigorously outline and discuss the mathematical relations underlying the models studied

Contents

The theoretical foundation for the study of the enterprises as economic organization and of the markets within which they compete will be illustrated and discussed during the course. In particular, it will be examined:
1) the nature of the enterprise, and the evolution of the various economic approaches to the study of its internal organization;
2) The firm and its costs
3) the coordination problems among activities and organizational units;
4) the incentive problems that arise from the structure of the relationships between the internal stakeholders (employees, managers, owners of property rights);
5) the organizational instruments available for managing coordination and incentive problems;
6) the theory of the markets in perfect competition
7) monopolies, monopsonies and dominant firms
8) oligopoly and collusion
9) monopolistic competition and product differentiation
10) price discrimination and other complex methods for price setting
11) strategic behaviour
12) vertical integration and vertical restrictions

Extended Syllabus

Part One. The economics of the firm and of organizations

1. The neoclassical theory of the firm
2. The economics of production and the theory of production costs
3. Firm vs. organization
4. Economic organization, external efficiency, internal efficiency and strategic effectiveness
5. The internal structure of the firm: coordination problems
6. The firm as a nexus of contracts
7. Principal agent theory, motivation, incentives and efficiency

Part Two: the firm and its markets

1. Perfect competition
2. Monopolies, monopsonies and dominant firms
3. Cartels
4. Oligopoly
5. Monopolistic competition and product differentiation
6. Industrial structure and performance
7. Price discrimination
8. Complex methods for price setting
9. Strategic behaviour
10. Vertical integration and vertical restrictions

Recommended Bibliography

- MILGROM P., ROBERTS J., Economia, organizzazione e management, Il Mulino (available in English: Milgrom P., Roberts J., Economics, organization and management, Pearson, last edition): chapters 2, 4, 5, 6

- CARLTON D.W., PERLOFF J.M., Organizzazione Industriale, McGraw-Hill (available in English: Carlton D.W., Perloff J.M., Modern Industrial Organization, Pearson, last edition): chapters from 1 to 12.

Methods of Provision

Conventional

Teaching Methods

Frontal classes and case studies. Frontal classes will revolve around the theoretical topics and will be held by the teacher, with the occasional participation of business experts. Case studies will be discussed by groups of maximum 5/6 students, in order for them to develop the ability to apply the acquired knowledge to real settings as well as to properly communicate/present the results of their work. Attendance is on a voluntary basis, but it is strongly encouraged. Only pupils attending classes can participate into group works.

Evaluation methods

Verification of learning:

Final examination: Oral

Modalities for learning verification: learning verification is based on an oral examination, through 2/3 questions aimed at assessing students’ knowledge of the teaching material, independence and communication skills. Particular attention will be paid to the appropriateness of the language used, the ability to connect several topics and critically conduct a dialogue on the topics proposed by the teacher. The final grade is based on a 30-point scale. In case of students that have participated in group works, the verification will also concern the presentation of the work.

Contacts/More Information

E-mail: alessandro.sarra@unich.it
Students reception days and hours: Thursday from 11:00 to 13:00

Università degli Studi
"G. d'Annunzio"

Chieti - Pescara

Aree