ECONOMICS OF ANTITRUST AND REGULATION

Single discipline educational activity

Course Sheet

Course code:

ECR20

Academic Year of enrolment:

2020

Year of supply:

2020/2021

Type of Course:

Characterising

Degree:

Course of 2nd Cycle Degree in MANAGEMENT, FINANCE AND DEVELOPMENT

Disciplinary Sector:

Applied Economics

Location:

Credits:

Programme Year:

Professor and Collaborators:

QUAGLIONE Davide

Cycle:

First semester

Hours of classroom activity:

Individual study hours:

135

Prerequisites:

The student must have basic knowledge in Industrial Economy

Objectives

EDUCATIONAL TARGETS
The objective of the course is to provide students with the theoretical and technical tools needed to understand market functioning as well as regulation and antitrust intervention. The aim is to increase the level of understanding of the institutional and economic contexts, and to provide conceptual tools to analyze economic phenomena at the micro level.

EXPECTED LEARNING OUTCOMES

KNOWLEDGE AND ABILITY TO UNDERSTAND
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- analyzing the trade-offs between static and dynamic efficiency, as well as agents’ rational incentives schemesunderstanding the way the institutional and regulatory frameworks affect agents’ behaviours

INDEPENDENCE

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 competitive criticalities through case studies

COMMUNICATION SKILLS
The following communication skills will be acquired by students at the end of the course:- understand the relationships between economic and legal languages concerning the analysis of antitrust and regulatory issues- outline and discuss antitrust cases, interacting with others in order to identify arguments in favour of and against the verdict of the antitrust authority

Contents

1. The Italian and the European antitrust laws.
2. Static and dynamic characteristics of imperfectly competitive market structures.
3. The relevant market and the abuse of the dominant position.
4. Collusion.
5. Abusive and exclusionary behaviours.
6. Hints of economic regulation.
The problems that the diffusion of digital technologies and ICT posed to the strategic behaviour of the enterprises and to the orderly and efficient functioning of the markets will be illustrated and discussed during the course. In particular the course aims at presenting to students, also through the analysis of case-studies:
1) the theoretical and empirical basis for sector analysis and for the formulation of competitive strategies in the digital economy field;
2) the theoretical instruments and the logic of analysis with which antitrust and regulation authorities -Italian and European- intervene to safeguard the proper functioning of the same markets.

Extended Syllabus

1. Introduction, (i): what antitrust policy is about; the differences between antitrust and economic regulation
2. Introduction, (ii): market power and social welfare. Allocative, production and dynamic efficiency
3. Quantitative issues: how to define the relevant market and how to measure market power
4. Horizontal agreements: collusion, tools for its identification and prevention; pro-competitive horizontal agreements, joint-ventures in R&D, “standard-setting organizations” and “licensing pools”
5. Horizontal concentrations: trade-off between efficiency and market power
6. Vertical agreements and concentrations
7. Price disciìrimination and the objective of market integration in the EU law;
8. Abusive practices:
8.1. Exclusive contracts;
8.2. Discriminatory practices;
8.3. Predatory pricing;
8.4. “Tying” and “bundling”;
8.5. “Price squeeze”, “refusal to deal” and interoperability;
8.6. Excessive pricing.
Competition and regulation problems in the markets of digital economy
- Network externalities
- Multisided markets
- Internet access and interconnection
- The economics of internet standards
- the economics of copyright and digital rights managements
- Open source and file sharing
- Economics of Big Data

Recommended Bibliography

Motta, M. e M. Polo (2005), Antitrust. Economia e Politica della Concorrenza, ed. Il Mulino, Bologna. Possible other teaching materials will be distributed during class.

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: davide.quaglione@unich.it
Office hours: Monday from 11:00 to 13:00

If Health Laws and University regulations allow, teaching activities, teachers office hours’, and exams may take place online (in whole or in part). For any further information and updates, please refer to the University website.

Università degli Studi
"G. d'Annunzio"

Chieti - Pescara

Aree