ECONOMIA APPLICATA
Academic Year 2023/2024 - Teacher: Maria Daniela GIAMMANCOExpected Learning Outcomes
At the end of the course, students will have acquired knowledge of the fundamental problems of the organization and the role played by innovation in the development and growth of the organization. This knowledge will allow them to interpret the innovative choices and the strategic decisions of the firms.
Course Structure
Lectures.
Required Prerequisites
Basics of microeoconomics. Perfectly competitive markets, equilibrium price and quantity determination. Free market efficiency and market failures. Firm choices in different market forms.
Attendance of Lessons
Attendance is not compulsory, but strongly recommended. Attendance is however required for students wishing to take the in itinere tests.
Detailed Course Content
Fundamental problems of the organization (coordination and incentive of the members of the organization and promotion of common interests). Notion of efficiency, nature and classification of the transaction costs. Coordination through the pricing system and through the managerial action. Bargaining in the presence of limited rationality, information asymmetries, adverse selection and moral hazard. Role played by the innovation in the development and the growth of the organization.
Textbook Information
Paul Milgrom e John Roberts (2005). Economia, organizzazione e management. Il Mulino. Strumenti. Volume I
Paul Milgrom e John Roberts (2005). Economia, organizzazione e management. Il Mulino. Strumenti.Volume II
The textbook is also available in English:
P.Milgrom and P.Roberts (1992) Economics, Organization and Management.
Melissa A. Schilling, Francesco Izzo (2022) Gestione dell'innovazione 4ed. McGraw Hill
The textbook is also available in English:
Melissa A. Schilling (2022). Strategic management of technological innovation, fifth edition, Mc Graw Hill
Learning Assessment
Learning Assessment Procedures
Written exam with open-ended questions
Examples of frequently asked questions and / or exercises
- Explain what economic organisations are. Explain what is meant by efficiency of economic organisations
- Explain what is meant by transaction costs . Describe the typology of transaction costs.
- Describe what the objectives of organisations are.
- Describe the neoclassical market model, i.e. coordination via prices.
- Explain what are the main coordination problems that the management of an organisation might face.
- Explain what is meant by bounded rationality and what are the contractual reactions to bounded rationality.
- Explain what is meant by moral hazard and what are its effects on efficiency.
- Explain what is meant by technological S-curves.
- Explain why a dominant design is established
- Discuss the advantages of the first mover
- Describe the factors that determine the optimal entry strategy