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Course 2022-2023 a.y.

20847 - ECONOMICS OF DIGITAL MARKETS

Department of Economics

Course taught in English

Go to class group/s: 31

CLMG (6 credits - II sem. - OP  |  SECS-P/01) - M (6 credits - II sem. - OP  |  SECS-P/01) - IM (6 credits - II sem. - OP  |  SECS-P/01) - MM (6 credits - II sem. - OP  |  SECS-P/01) - AFC (6 credits - II sem. - OP  |  SECS-P/01) - CLELI (6 credits - II sem. - OP  |  SECS-P/01) - ACME (6 credits - II sem. - OP  |  SECS-P/01) - DES-ESS (6 credits - II sem. - OP  |  SECS-P/01) - GIO (6 credits - II sem. - OP  |  SECS-P/01) - DSBA (6 credits - II sem. - OP  |  SECS-P/01) - PPA (6 credits - II sem. - OP  |  SECS-P/01) - FIN (6 credits - II sem. - OP  |  SECS-P/01)
Course Director:
MICHELE POLO

Classes: 31 (II sem.)
Instructors:
Class 31: MICHELE POLO


Suggested background knowledge

A good knowledge of Microeconomics and Game Theory is suggested


Mission & Content Summary
MISSION

Digital makrets are today among the more important and fast growing industries, and pose new and challenging problems both in terms of understanding their functioning and in designing proper policies. The course addresses these issues.

CONTENT SUMMARY
  1. Oligopoly models (recap, advanced material)
  • Models of oligopoly competition: Bertrand, Cournot, product differentiation
  • Market definition and measures of concentration

 

2. Digital Markets

  • Network externalities and market tipping
  • Two sided markets
  • Competition in the market and for the market
  • Data as a barrier to entry

 

3. Collusion

  • Tacit collusion: the basic model and extensions
  • Collusion and enforcement, leniency programs
  • Factors affecting cartel stability and facilitating practices
  • Algorithmic pricing and collusion 
  • Practice: detecting cartels
  • Cases

 

4. Mergers

  • Effects of horizontal mergers: market power vs. efficiencies
  • Mergers and innovation, killer acquisitions
  • Practice: quantitative tools in merger control
  • Cases  

 

5. Abuse of dominance          

  • Foreclosure through pricing, tying, exclusive dealing
  • Vertical foreclosure
  • Self-preferencing
  • Digital Market  Act
  • Cases

 


Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
  • Analyze complex market situations and business strategies
  • Performe an empirical analysis of the basic facts
  • Identify relevant antitrust and regulatory issues

 

APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...

The student will be able to identify the relevant models to analyise a specific situation and the epirical tools to validate them. 

The student will be able to figure out how an antitrust case might be developed given the basic facts and the provisions of competition policy and regulation


Teaching methods
  • Face-to-face lectures
  • Guest speaker's talks (in class or in distance)
  • Case studies /Incidents (traditional, online)
DETAILS
  • Face-to-face lectures: covering the material of the course, provision of slides, discussion of exercises
  • Guest speakers' talks: explaining the role and the way of proceeding in antitrust cases by antriust enforcers and privat consultants
  • Case studies: discussion of antitrust cases

Assessment methods
  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
  •   x x
    ATTENDING AND NOT ATTENDING STUDENTS

    The exam is the same for attending and non-attending students


    Teaching materials
    ATTENDING AND NOT ATTENDING STUDENTS

    Belleflamme P., Peitz M. (2010), Industrial Organization, Markets and Strategies, Cambridge U.P.

    Tirole J. (1988), The Theory of Industrial Organization, MIT Press

    Motta M. (2005), Competition Policy: Theory and Practice, Cambridge U.P.

     

    An additional reading list will be distributed

    Last change 19/12/2022 15:00