To provide explanations of why firms are grouped together in industries in particular ways, 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
By the end of the module the student should be able to 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; understand the nature of empirical support for the theoretical models; solve algebraic problems relating to the standard models; understand more of the methodology of model-building and work in groups to solve problems.
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.
- Core Module
- L116 - Year 2
- Optional Module
- LM1D (LLD2) - Year 2, LM1D (LLD2) - Year 3, V7ML - Year 2, V7ML - Year 3, L100 - Year 2, V7MM - Year 4, V7MP - Year 2, V7MP - Year 3, L1P5 - Year 1, L1PA - Year 1, V7MR - Year 2, V7MR - Year 3, LM1H - Year 4, LA99 - Year 2, LA99 - Year 3, L1L8 - Year 2, L1L8 - Year 3, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4
- Pre or Co-requisites
- MORSE/GL11 students - EC107 All other students - EC120 + (EC107 or EC109)
- Pre-requisite for
- May not be combined with EC335.
- Part-year Availability for Visiting Students
- Available in the Autumn term only (2 x problem sets and 1 x 1200 word essay – 12 CATS)
- Assessment Method
- Coursework (20%) + 2 hour exam (80%)
- Coursework Details
- 1 problem set (worth 10%) and one assignment (1200–word essay) (10%)
- Exam Timing
Time Allowed: 2 hours.
Answer THREE questions from Section A (20 marks each), and FIVE out of SIX questions from Section B (40 marks in total). Answer Section A questions in one booklet and Section B questions in a separate booklet.
Approved pocket calculators are allowed.
Read carefully the instructions on the answer book provided and make sure that the particulars required are entered on each answer book. If you answer more questions than are required and do not indicate which answers should be ignored, we will mark the requisite number of answers in the order in which they appear in the answer book(s): answers beyond that number will not be considered.
Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.