| Module Code: ECO3033 |
Module Title: INDUSTRIAL ORGANISATION |
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Module Provider: Economics
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Short Name: ECO3033
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Level: HE3
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Module Co-ordinator: NEWMAN ME Mrs (Economics)
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Number of credits: 30
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Number of ECTS credits: 15
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| Module Availability |
All Year
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| Assessment Pattern |
| Unit(s) of Assessment |
Weighting Towards Module Mark (%)
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3 Hour Examination
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70
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| Coursework |
30
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Qualifying Condition(s)
A weighted aggregated mark of 40% is required to pass the module. |
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| Module Overview |
The module examines how markets operate, placing particular attention on the firms’ strategic interactions. It begins by developing the techniques to study oligopoly behaviour and strategic competition. Next we study different aspects of the monopoly firm: its source, its costs and benefits, pricing, welfare implications and regulation. We proceed by exploring the profit and welfare implications of price discrimination. The following lectures look at static models of oligopoly pricing: the Cournot model, the Bertrand model and the Stackelberg model. We then turn to consider dynamic models of oligopoly.
In the spring semester, the course extends the analysis by considering firm strategies beyond the simple pricing and output decisions examined during the autumn semester. In particular, we expand the analysis of oligopoly to markets where products are differentiated. We also look at vertical relations, Research and Development (R&D) and address the issues that arise when firms advertise their products. We then change our focus by relaxing the assumption that the industry structure is given. This part of the course develops the modern theory of entry and entry deterrence and also provides a comprehensive treatment of mergers and related antitrust policies |
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| Prerequisites/Co-requisites |
| None |
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| Module Aims |
| To provide students with a working knowledge of current thinking in industrial organisation, and its application to business strategy, regulation and competition policy |
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| Learning Outcomes |
| On completion of the module students will be able to apply simple models of firm behaviour and strategic interaction in order to evaluate various practical situations. |
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| Module Content |
An indicative set of topics to be covered is:-
- Game theory tools for industrial organisation
- Monopoly
- Price discrimination
- Oligopoly pricing
- Product differentiation
- Vertical relations
- Research and Development
- Advertising
- Entry
- Mergers
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| Methods of Teaching/Learning |
Weekly two-hour lectures
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| Selected Texts/Journals |
No single text-book provides a source for all material covered in the course. Useful sources are:
Pepall, L., Richards, D. and Norman, G., Industrial Organization: Contemporary Theory and Empirical Applications, Blackwell Publishing, 2008.
Luis M.B. Cabral, Introduction to Industrial Organization, MIT Press, 2000.
Carlton , D. and Perloff, J., Modern Industrial Organization, Pearson, 2005.
Church, J. and Ware, R., Industrial Organization: A Strategic Approach, MacGraw-Hill, 2000. This book is available on the web at:http://homepages.ucalgary.ca/~jrchurch/page4/page5/files/PostedIOSA.pdf
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| Last Updated |
5 October 2010 |
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