B0022 - ANTITRUST IN THE FINANCIAL SECTOR

Contenuti

1. Introduction to competition policy: definition, history, and the law

Definition of competition policy

History of competition policy in the EU and in the US

Structure of EU competition Rules

Introduction to Art 101 TFEU, Art 102 TFEU, ECMR

Objectives of Competition Policy

2. Market power and Welfare

Definition of market power

Allocative efficiency, productive efficiency, and dynamic efficiency

Public policies and incentives to innovate

The validity of the competition paradigm of antitrust for the financial sector: the “too big to fail” argument.

Financial Regulation and Antitrust scrutiny: complements or substitutes?

3. Market definition and the assessment of market power

The definition of the relevant market.

Relevant markets in the banking system.

Concentration Ratios, Lerner Index, HH index and market power

4. Art 101 TFEU : Collusion and Horizontal Agreements

Horizontal agreements

Collusion: an economic definition

The sustainability of collusion in a repeated game

Factors that facilitate collusion

Competition policies against collusion

The Antitrust implications of network interconnectedness in financial markets: the case of payment systems

5. Horizontal mergers

Unilateral effects

Pro-collusive effects

Remedies: structural and behavioral remedies

Merger policy in the EU

6. Vertical mergers

Intra-brand competition

Inter-brand competition

Anti-competitive effects

7. Predation, monopolization, and other abusive practices

Predatory pricing

Price Discrimination

Non-price monopolization: strategic investment, bundling, tying, exclusive contracts.

Interoperability in Financial markets.

Testi/Bibliografia

M. Motta (2004), Competition Policy. Theory and Practice. New York, Cambridge University Press.

Other material and readings will be added or distributed during lectures and/or through the course website (see https://virtuale.unibo.it) [https://virtuale.unibo.it/] . The course website will also contain sample presentations.

Metodi didattici

Lectures and interactive discussions of antitrust cases in class. Students are advised to read the material before the class comes. The material for each lecture will be indicated in the detailed calendar published on the official website (see https://virtuale.unibo.it) at the beginning of the course.

Modalità di verifica e valutazione dell'apprendimento

Non-attending students

Final written exam (time available: 1 hour and 30 minutes) covering the entire syllabus. The exam consists of 2 open-ended questions (up to 7 points each) and 6 multiple-choice questions (for which students are required to justify their answer based on the theory learnt - up to 3 points each).

The scoring for the open-ended questions is based on the correctness, thoroughness, and completeness of the response. The student must demonstrate an understanding of the topic, be able to present it rigorously, critically examine the main aspects, and account for the scientific and political debate.

The scoring for the multiple-choice questions is as follows: each correct answer is worth 2 points if justified. Correct answers without justification are worth 0 points. Incorrect answers are worth 0 points. The justification should provide a brief explanation of why the student believes the chosen answer is correct.

The maximum total score obtainable in the final written exam is 20 points, which is converted to a thirty-point scale as follows: 20 points correspond to 32. Lower scores are converted proportionally.

Students attending lectures (for a minimum of 6 out of 10 lectures)

Attending students have the following three alternative assessment methods available:

1) The first method of assessment will be based 50% on individual or group in-person presentations (not longer than 30 minutes)  and 50% on the submission of an individual/group research project (dissertation) of a length between min 3,000 words and max 3.500 words (excluding index, abstract, footnotes and bibliography) on a specific Antitrust case in financial markets (groups should not contain more than 2 students). The topic is chosen by the students (but the Professor must be consulted) by the end of the third week of the course. The dissertation shall be submitted via email to m.alvisi@unibo.it in Word format within 4 days before the exam date at 5 p.m. (unless differently agreed with Prof. Alvisi under exceptional circumstances).

This assessment method is available for the first two exam dates  pertaining to the a.y. 2024/25 (that is, until June 2025).

2) The second method of assessment will be 100% based on the submission of an individual research project (dissertation) of a length between min 6,000 words and max 7.000 words (excluding index, abstract, footnotes and  bibliography) on a specific Antitrust case in financial markets. The topic is chosen by the students (but the Professor must be consulted). The dissertation shall be submitted in Word format via email to m.alvisi@unibo.it by the exam date at 9 a.m.not In all other cases (that is: 1. students did not attend the course.

This assessment method is available for all the exam dates pertaining to the a.y. 2024/25 (that is, until September 2025).

3) The same method available to non-attending students: Final written exam (time available: 1 hour and 30 minutes) covering the entire syllabus. The exam consists of 2 open-ended questions (up to 7 points each) and 6 multiple-choice questions (for which students are required to justify their answer based on the theory learnt - up to 3 points each).

The scoring for these three alternatives is obtained as follows.

For methods 1) and 2), the dissertation (and the presentation, if chosen) will be evaluated with a score ranging from 0 to 32, as follows:

0-17: The student shows insufficient knowledge and analytical skills, spread over just few components of the case-study, the overall jargon is often imprecise.

18-23: The student shows sufficient knowledge and analytical skills, spread however over just few components of the case-study, the overall jargon is correct

24-27: The student shows an adequate preparation at a technical level with some doubts over single parts of the case-study. Good, yet not articulate analytical skills, with the use of a correct jargon

28-30: Great knowledge about most of the elements of the case-study, good critical and analytical skills, good usage of the specific jargon

31-32: excellent and in depth knowledge of the different elements of the case-study, excellent critical and analytical skills, excellent usage of specific jargon.

The course score is expressed into thirties, from 18 to 30, and if the score obtained in the dissertation+presentation or in the longer dissertation is above 30, the professor may assign an honor mark (lode).

For method 3, the scoring is the same one used for non-attending students (see the section "non-attending students" above for details)

 

Strumenti a supporto della didattica

- Slides and other material will be available on the course website.

- During the first three weeks a tutor will offer 1-2 review sessions on the economic tools that the Professor will use in the remainder of the course.

Orario di ricevimento

Consulta il sito web di Matteo Alvisi