Programme/Approved Electives for 2020/21
Available as a Free Standing Elective
This module explores topics in industrial organization and regulation. The module examines imperfect competition, effect of market structure on firm behavior, pricing, cartel formation and anti-competitive practices. Non-cooperative game theory is used to study the strategic behavior of firms. The implications of market structure and market power for public regulation of industries are examined.
This module focuses on the study of imperfectly competitive markets, a much more realistic setting than the perfect competition case. The emphasis is on the behaviour of firms in such settings, in particular their quest for, and use of, market power. The strategic interaction of firms, including their pricing decisions and the possible equilibrium outcomes, are analysed in detail. The basic game-theoretic tools necessary for the study of industrial organisation will be taught in the context of the models being developed. The welfare implications of alternative market organisations, the consequences of market power, and the scope for government regulation and antitrust/competition policies will be considered.
Intended Learning Outcomes
demonstrate knowledge of key questions in the field of industrial organisation and regulation and their relevance will be achieved by assessments: 1,2analyse basic economic and strategic models of industrial organisation using game theoretic solution concepts such as Nash equilibrium and subgame perfect equilibrium will be achieved by assessments: 1,2explain the implications of taking strategic considerations into account and relate how behaviour may be different in strategic environments compared to non-strategic environments will be achieved by assessments: 1,2translate real-world situations into an abstract model in order to critically analyse and derive predictions of real-world behaviour will be achieved by assessments: 1,2solve the "equilibrium" in various models of markets including oligopolistic markets, markets with dynamic interaction, markets with price discrimination and markets with vertical interaction will be achieved by assessments: 1,2use strategic thinking to predict market outcomes in simple settings. will be achieved by assessments: 1,2
Lectures: 20 hoursSmall-group teaching: 5 hoursReading/revision of lecture material: 85 hoursPreparation of problem sets: 20 hoursClass preparation: 20 hours
1: Class Test weighted 30%
Description of Module Assessment
One-hour in-class written work involving a mix of numerical and discursive questionsA sequence of short problem-solving questions and short descriptive questions designed to elicit understanding and act as a fitting mid-term revision exercise.2: Unseen Exam weighted 70%
Two-hour unseen examinationExam covering the syllabus of the whole module.