Industrial Economics (Advanced) (2018/2019)

Course partially running (all years except the first)

Course code
Name of lecturer
Filippo Pavesi
Filippo Pavesi
Number of ECTS credits allocated
Academic sector
Language of instruction
primo semestre lauree magistrali dal Oct 1, 2018 al Dec 21, 2018.

Lesson timetable

Go to lesson schedule

Learning outcomes

The course analyzes firms’ problems, including interactions with owners, management, the workforce, and input providers, as well as analyzing the basic issues of corporate governance and corporate finance. The major objective of the course is to prepare the students for a critical assessment of these economic situations and the related economic policies. We analyze firms’ choices using the essential tools of microeconomics and information theory. Upon completing the course, in terms of learning outcomes students will be expected to understand and utilize the basic analytical tools adopted, with a special emphasis on the theory of incentives, that involves the behavior of economic agents in the presence of asymmetric information and divergent interests.


This is intended to be an applied microeconomics course addressed at Management and Accounting students who plan to work in consulting, management and organizational positions in various types of firms. The exposition of the different topics will be motivated by case studies, together with industry analysis and economic policies, as in the tradition of Economics Departments in Business Schools.

Weekly office hours (on appointment) are as indicated on the webpage.
The program and the related course materials are the same for all students including those that are not able to come to class.
Further course material is available on the e-learning platform of the course.

Text Books:
1) Ricketts M., “The Economics of Business Enterprise. An Introduction to Economic Organization and the Theory of the Firm”, Edward Elgar, 3rd edition.
2) Tirole, J., “The Theory of Corporate Finance”, Princeton University Press, 2010.

The program will include the following topics
Basic Concepts
- The gains from trade (Ricketts)
- Transaction costs (Ricketts)
- The entrepreneur (Ricketts)
- Property rights (Ricketts)
- Principal and Agent (Ricketts)
The Economic Structure of Organizations
- The role of Hierarchies in Organizations (Ricketts)
- Corporate governance: managerial incentives, shareholders’ activism, and the role of takeovers (Tirole)
- Corporate finance: the relationship between financial structure and the value of the firm (Tirole)

Reference books
Author Title Publisher Year ISBN Note
Ricketts Martin The Economics of Business Enterprise. An Introduction to Economic Organization and the Theory of the Firm (Edizione 3) Edward Elgar 2003
Tirole Jean The Theory of Corporate Finance Princeton University Press 2010

Assessment methods and criteria

Consistently with the course contents, the assessment of the intended learning outcomes will be based on the following components:
1) a written examination worth 30 points and composed of the following parts:
- short questions on theory (a share of which will be multiple choice questions);
- exercises and questions related to applications of the theory to specific economic cases. Students will be expected to comment on real world events related to the course contents;
To receive a passing grade one must obtain at least 18/30 points on the written examination.

2) a short essay (1-500-2,000 words), as described on the e-learning page of the course, that must be handed in the day of the exam. In terms of points, the essay is assigned a number of points ranging from -1 to 3 that will be added to the grade obtained after having passed the written examination.

The sum of the points obtained on the written examination and the essay will determine the final grade.