EC500 Microeconomics and EC502 Macroeconomics
OverviewIndustrial Economics studies why and how firms and industries behave and interact with each other. This is probably one of the most important and interesting areas in economics. Understanding firms' behaviour is relevant not only to the firms but also to the governments that design industrial policies in order to favour consumers without decreasing firms' efficiency.
During the module, we deal with issues that are present in everyday news: anti-competitive practices, the effect of market power on consumer welfare and the incentives for product innovation, and private and public effects of mergers. You have the opportunity to discuss and understand many of these topics in a deeper and more economically informed way.
This module has been designed for students who have already taken intermediate microeconomics. You are encouraged to apply economic analysis and techniques to understand the behaviour of firms and industries.
This module appears in:
Method of assessment
4% Problem Sets
8% In Course Test
8% Essay (1500 words)
80% Examination (2 hours)
Daniel Richards, George Norman, Lynne Pepall, Industrial Organization: Contemporary Theory and Empirical Applications (4th ed rev), Blackwell Publishing, 2008
By the end of this module you will be able to:
explain how firms decisions regarding price, advertising and R&D can be modelled and evaluate the impact of those decisions on the structure and performance of markets
understand and apply the basic concepts of game theory to the analysis of firms strategic behaviour
identify the implications of the theory for the design and implementation of industrial policy and to critically evaluate the application of industrial policies in the UK and other countries
follow analysis of economic problems, construct your own economic arguments and offer critical comments on the arguments of the others.