SUMMER SCHOOL

Markets and Governments: a Theoretical Appraisal

THIRD EDITION

POWER: MARKETS, ETHICS AND INSTITUTIONS

Villa Mondragone, Rome - June, 18th-20th, 2025

“Painting by Enzo Amendola“

“Professor Hayek does not see, or will not admit, that a return to free competition means for the great mass of people a tyranny probably worse, because more irresponsible, than that of the State”, George Orwell: “A Review of The Road to Serfdom by F.A. Hayek”, Observer, April 9th 1944.

“It seems to be nothing more than simple and obvious wisdom to compare social institutions as they might be expected actually to operate rather than to compare romantic models of how such institutions might be hoped to operate. [...] The socialist mystique to the effect that the state, that politics, somehow works its way toward some transcendent “public good” is with us yet, in many guises, as we must surely acknowledge”, James Buchanan: “Politics without romance: a sketch of positive public choice theory and its normative implications”, Physica, 1979.

Why a School

The discipline of economics occupies a central role in the social sciences. Its conclusions are a key reference in public discussions. From a theoretical point of view, however, the foundations of the discipline appear far from being unambiguously established. Its basic prescriptions rest on assumptions which still deserve to be more fully understood and explicitly discussed. The MGTA initiative attempts at reexamining a very classic theme in economic thought, the tension between markets and governments, from the perspective of contemporary economic theory.

This year's summer school will focus on power.

While power is abstracted away in the fictional world of perfectly competitive markets, asymmetric bargaining power, market power, and political power are pervasive phenomena in actual economies. Market outcomes are shaped by power inequalities, with both distributive and efficiency implications. For instance, the market power of firms affects how much consumers have to pay for goods and services and how much money the recipients of capital income can make. But it also affects, dynamically, technological progress and growth: market power may stifle innovation.

Government interventions may be required to redress major power imbalances but policies themselves are not designed in a vacuum as government decisions are affected by powerful actors in the political sphere, as well as by (powerful) vested interests. But power may matter, normatively, beyond its effect on efficiency and distribution: major power imbalances between economic actors may be disputable per se, as they undermine fundamental relational values. Thus, a focus on power provides an interesting counterpoint to the distributive focus that dominates normative analyses in economics.

This year's summer school will discuss the notion of power in its many dimensions, focusing on ways to conceptualise (and model) power in economics, the effects of power in goods markets and in the labour market, the normative implications of power asymmetries, the gendered dimension of power, possible interventions to mitigate unequal distributions of power.

The school aims at offering a critical review of all these issues. We will alternate traditional lectures by academics who have contributed to different areas of contemporary economic theory, with discussions around the presentation of recently published texts. In particular, the school aims to provide an opportunity to contrast contemporary economic theory with recent developments in political philosophy.

Programme

Applications

Directions and Accommodations

In what follows you can find useful indications to reach Villa Mondragone

Directions

Fiumicino Airport
From Fiumicino airport take the fast train (LEONARDO EXPRESS) to Termini railway station (departures every 30 minutes, first departure at 06:35, last departure at 23:35, ticket 9,50 €.
A taxi to reach Rome should cost around 40,00/60,00 €.
Frascati downtown can be conveniently reached from Termini central railway station by train. Trains nearly every hour; journey takes about 40 minutes. Tickets are available at the Station and cost 1,70 €.

Ciampino Airport
The following bus and train services are available from Ciampino:
• the Terravision bus (Roma Termini central station - Roma Ciampino airport )
• the Cotral/Schiaffini bus nightly connections (Roma Termini central station - Roma Ciampino airport )
• the subway + the Cotral/Schiaffini bus (Line A, Anagnina station - Roma Ciampino airport )
• the train + the Cotral/Schiaffini bus (Ciampino railway station - Roma Ciampino airport)
Back

From Termini Railway Station
Take the underground "A" to the final stop Anagnina (ticket 1 €).
From ANAGNINA underground "A" final stop catch a blue COTRAL bus direction Rocca Priora (bus-shelter n.° 6) to Monteporzio Catone and get off at the Villa Mondragone.
Frascati downtown can be conveniently reached from Termini central railway station by train. Trains nearly every hour; journey takes about 40 minutes. Tickets are available at the Station and cost 1,70 €.

By Car or Taxi/Uber
From highway A1 Milano - Napoli or from highway A24 Roma - L'Aquila/Pescara: follow direction Roma Sud, exit Monte Porzio Catone, then follow signs to Villa Mondragone and Hotel Villa Vecchia (follow the road signs for Frascati).
From downtown Rome:
take the G.R.A. (Grande Raccordo Anulare, the ring highway around Rome) to the highway A1 Roma - Napoli, then exit Monte Porzio Catone. Follow signs to Villa Mondragone and Hotel Villa Vecchia.