EC208: Industrial Economics 1: Market Structure

Caroline Elliott
Module Leader

15 CATS - Department of Economics

Summer Module

Autumn Module

Principal Aims

This module presents core topics in Industrial Economics. There is a focus on understanding market structure (explain why firms are grouped together in industries in particular ways). Also, students will learn about the nature of market power, why firms interact as they do in markets, and how the nature of these interactions influences economic performance in terms of efficiency, profits, technical progress and welfare.

Principal Learning Outcomes

Understand the nature of empirical support for the theoretical models. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, reading. The summative assessment methods that measure the achievement of this learning outcome are: Assessed Essay, Exam.

Solve algebraic problems relating to the standard models. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, reading. The summative assessment methods that measure the achievement of this learning outcome are: Assessed Essay, Exam.

Understand more of the methodology of model-building and work in groups to solve problems.The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, reading The summative assessment methods that measure the achievement of this learning outcome are: Assessed Essay, Exam

Understand the nature of market power, why firms interact as they do in markets and how the nature of these interactions influences economic performance in terms of efficiency. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, reading. The summative assessment methods that measure the achievement of this learning outcome are: Assessed Essay, Exam.

Syllabus

The module will typically cover the following topics: Introduction to Industrial Economics; use of game theory in modelling strategic behaviour; models of market structure such as Bertrand, Cournot, and Stackelberg; Cartels and Collusion; product differentiation; entry and exit; contestable markets; measuring market structures; determinants of concentration; studies of structure and profitability.

Context

Core Module

L116 - Year 2

Optional Module

L1P5 - Year 1, L1PA - Year 1, LM1D (LLD2) - Year 2, V7ML - Year 2, V7ML - Year 3, V7MP - Year 2, V7MP - Year 3, V7MR - Year 2, L100 - Year 2, V7MR - Year 3, V7MM - Year 4, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, LM1H - Year 4, L1L8 - Year 2, L1L8 - Year 3, LA99 - Year 2, LA99 - Year 3

Pre or Co-requisites

Any of:

EC106-24 Introduction to Economics OR

EC107-30 Economics 1 OR

EC109-30 Microeconomics 1 OR

EC137-15 Economics 1 (Micro)

AND

EC121-12 Mathematical Techniques A AND

EC122-12 Statistical Techniques A AND

EC125-6 Computing and Data Analysis

EC123-12 Mathematical Techniques B AND

EC124-12 Statistical Techniques B AND

EC125-6 Computing and Data Analysis

MORSE/GL11 students – EC106 or EC107

All other students - EC120 + (EC107 or EC109 or EC137)

Summary:

Modules: (EC106-24 or EC107-30) and (EC106-24 or EC107-30 or EC109-30 or EC137-15) and (EC121-12 and EC122-12 and EC125-6) and (EC123-12 and EC124-12 and EC125-6)

Assessment

Assessment Method: Coursework (20%) + Online Examination (80%)
Coursework Details: 1200 word essay (10%) , Online Examination (80%) , Problem Set 1 (10%)
Exam Timing: Summer