OverviewThe module introduces students to the field of Industrial Economics and studies why and how firms and industries behave and interact with each other. 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.
The module is designed for students who have taken intermediate microeconomics and addresses issues that are present in everyday news: anti-competitive practices, the effect of market power on consumer welfare, incentives for product innovation, and the private and public effects of mergers.
This module appears in:
This module is an elective for all Single and Joint Honours degree programmes in Economics.
This module is not available to students across other degree programmes in the University.
Method of assessment
Problem Sets (4%)
In Course Test 1 (8%)
Essay 1 (1500 words) (8%)
Examination, 2 hours (80%)
Church, J and R. Ware (2000), Industrial Organization: A Strategic Approach, McGraw-Hill.
Lipczynski, J., Wilson, J. and J. Goddard (2013), Industrial Organisation: Competition, Strategy and Policy (4th ed.), Prentice-Hall.
Martin, S. (2010), Industrial Organization in Context, Oxford University Press.
Richards, D., Norman, G. and L. Pepall (2008), Industrial Organization: Contemporary Theory and Empirical Applications (4th ed.), Blackwell Publishing.
Tirole, J. (1997), The Theory of Industrial Organization (9th ed.), MIT Press.
By the end of this module you will be able to:
* explain how firms decisions regarding price, advertising and R&D, etc. can be modelled and evaluate the impact of those decisions on the structure and performance of markets.
* understand how firm behaviour affects economic welfare.
* understand and apply concepts of game theory to the analysis of firm's strategic behaviour.
* understand the growth of firms through vertical integration and merger activity.
* identify and critically evaluate the implications of economic theory for the design, implementation and evaluation of industrial policies in the UK and other countries.