GIORGIO BARBA NAVARETTI , responsible for the course
Degree in ECONOMICS AND POLITICAL SCIENCE (EPS) - Classi LM-56/LM-62 Enrolled from 2014/2015 academic year - Laurea Magistrale - 2016/2017
Compulsory course or activity | yes |
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Year of course | 2s |
Term or semester | 1st term |
Scientific fields (settori scientifico-disciplinari) |
|
ECTS credits (CFU) compulsory | 12 |
ECTS credits - facultative | - |
Aims and objectives: The course aims at providing the students with a clear understanding of the following concepts:
- competitive issues at the firm level;
- key functioning of markets and competition;
- scope and effects of international trade; and
- determinants and effects of the international strategies of firms.
Language of instruction: English
The course covers several topics related to competition, globalization, and industry. The international context of competition is dealt with in modules 1 and 2. the industry and firm level analysis is dealt with in modules 3 and 4.
Syllabus
- Introduction
- The Gains from Trade
- The Ricardian Model
- The Heckscher-Ohlin Model
- Imperfect Competition
- Increasing Returns to Scale
- Trade in Intermediate Inputs and Wages
- Heterogeneous Firms and the International Markets
- Horizontal VS Vertical FDI
- Barba Navaretti G., and T. Venables, 2005, Multinational Firms in the World Economy, Princeton University Press (BNV);
- Feenstra R. C., 2004, Advanced International Trade. Theory and Evidence, Princeton University Press (F);
- Markusen J. R., J. R. Melvin, W. H. Kaempfer, and K. E. Maskus, 1995, International Trade. Theory and Evidence (the textbook is downloadable at http://spot.colorado.edu/~markusen/textbook.html) (MMKM);
- Helpman E., 2006, Trade, FDI and the Organization of the Firm, Journal of Economic Literature, vol. 44(3), pp. 589-630;
- Helpman E., M. J. Melitz, and S. R. Yeaple, 2004, Export versus FDI with heterogeneous firms, American Economic Review, vol. 94, pp. 300-316;
- Melitz M. J., 2003, The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity, Econometrica, vol. 71(6), pp. 1695-1725;
- Melitz M., and G. Ottaviano, 2008, Market Size, Trade, and Productivity, Review of Economic Studies, vol.75, pp. 295-316.
Syllabus
- Introduction
- The Gains from Trade
- The Ricardian Model
- The Heckscher-Ohlin Model
- Imperfect Competition
- Increasing Returns to Scale
- Trade in Intermediate Inputs and Wages
- Heterogeneous Firms and the International Markets
- Horizontal VS Vertical FDI
- Barba Navaretti G., and T. Venables, 2005, Multinational Firms in the World Economy, Princeton University Press (BNV);
- Feenstra R. C., 2004, Advanced International Trade. Theory and Evidence, Princeton University Press (F);
- Markusen J. R., J. R. Melvin, W. H. Kaempfer, and K. E. Maskus, 1995, International Trade. Theory and Evidence (the textbook is downloadable at http://spot.colorado.edu/~markusen/textbook.html) (MMKM);
- Helpman E., 2006, Trade, FDI and the Organization of the Firm, Journal of Economic Literature, vol. 44(3), pp. 589-630;
- Helpman E., M. J. Melitz, and S. R. Yeaple, 2004, Export versus FDI with heterogeneous firms, American Economic Review, vol. 94, pp. 300-316;
- Melitz M. J., 2003, The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity, Econometrica, vol. 71(6), pp. 1695-1725;
- Melitz M., and G. Ottaviano, 2008, Market Size, Trade, and Productivity, Review of Economic Studies, vol.75, pp. 295-316.
The following is a list of the topics for the third unit. Introduction to industry analysis in a partial equilibrium context; theoretical and empirical issues. Essential elements for a theory of the firm. Monopoly power and its consequences; monopoly pricing and price discrimination. Analysis of vertical relations, contracts, and the boundaries of the firm.
The same as for attending students
1. Church J. and R. Ware: Industrial Organization: A Strategic Approach, available online at http://homepages.ucalgary.ca/~jrchurch/page4/page4.html
Chapters 1-6
2. Pepall L., Richards D. and G. Norman: Industrial Organization: Contemporary Theory and Practice. Blackwell Publishing, 2008 (4th edition). Chapters 1-5.
Also useful are:
Tirole, J.: The Theory of Industrial Organization, MIT Press, 1988, especially chapter 4.
Belleflamme P. and M.Peitz : Industrial Organization: Markets and Strategies, Cambridge University Press, 2010, chapter 6.
The same as for attending students
The following is a list of topics for the fourth unit. Oligopoly structures: the Cournot quantity setting game. Analysis of price competition in oligopoly. Cartel formation and collusion in repeated games. Product differentiation models. Entry deterrence and entry accommodation. Oligopoly and international trade. Strategic trade policy.
The same as for attending students
The final reading list shall be given during the course and posted on the course website at www.ariel.unimi.it.
The main texts are
1. Church J. and R. Ware: Industrial Organization: A Strategic Approach, available online at http://homepages.ucalgary.ca/~jrchurch/page4/page4.html, (Chapters 8-16 and 20)
2. Pepall L., Richards D. and G. Norman: Industrial Organization: Contemporary Theory and Practice. Blackwell Publishing, 2008 (4th edition). Chapters 1-5.
Also useful are:
Tirole, J.: The Theory of Industrial Organization, MIT Press, 1988; Chapters 5-8.
Martin, S. : Industrial Organization in Context, Oxford University Press, 2010 (especially chapter 16)
Belleflamme P. and M. Peitz, Industrial Organization; Markets and Strategies, Cambridge University Press, 2010 (cahpters 3 and 14)
The same as for attending students
Exam | unico |
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Type of assessment | Esame |
Assessment | voto verbalizzato in trentesimi |
Prerequisites, exams and assessment The following exams are a pre-requisite. Mathematics, Microeconomics, Maroeconomics, Game Theory. Exams are made of final written tests composed of exercises and multiple choice questions. it is possible that the sutdents be asked to write an essay in addition to the written test.
Propaedeutical courses Microeconomics, Game Theory, Mathematics.
Scientific fields
Lezioni: 20 hours
Scientific fields
Lezioni: 20 hours
Scientific fields
Lezioni: 20 hours
Scientific fields
Lezioni: 20 hours
Teacher | Office location | |
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GIORGIO BARBA NAVARETTI , responsible for the course | martedì ore 11.30 - 12.30. Sito docente: http://www.dagliano.unimi.it/pages/giorgio-barba-navaretti/ | stanza 12 |
PAOLO GARELLA | Dal 1 febbraio 2018 in poi: martedì ore 8:15-11:15. | DEMM stanza 26 |
PAOLO GARELLA | Dal 1 febbraio 2018 in poi: martedì ore 8:15-11:15. | DEMM stanza 26 |
The program is dscribed in detail in the specific sections dedicated to the four modules below.