Principal Aims

This module focuses on strategic behaviour underlying the various reasons why there is a range of prices even for homogeneous goods, something not treated in traditional models. Thus for example, consumers’ search behaviour, or lack of search, can influence how much they pay, as we see from energy markets, also access to information and firms’ manipulation of information. Once we move beyond homogeneous goods, additional factors come into play, such as price discrimination/ differentiation, for example penalties for consumers who are loyal, and then there are non-price features, differing links between sellers and their suppliers, amongst other things. The approach involves a mixture of models and empirical illustrations and focuses on students’ ability to understand real-world phenomena.

Principal Learning Outcomes

Subject Knowledge and Understanding:...understand the possibilities of and constraints in pricing differently to different groups of consumers, including those with differential knowledge of prices. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures and seminars, including formative problem sets covered in seminars. The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem set and examination.

Subject Knowledge and Understanding:...understand the extent to which models in the above areas receive support from empirical studies. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures and seminars. The summative assessment methods that measure the achievement of this learning outcome are: Assessed essay.

Cognitive Skills:...have an appreciation of how to structure an argument and analysis. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures and seminars, including formative problem sets covered in seminars. The summative assessment methods that measure the achievement of this learning outcome are: Assessed essay.

Key Skills:...work in groups to achieve a desired outcome. The teaching and learning methods that enable students to achieve this learning outcome are: Formative and summative problem sets worked on in small groups.

Subject Knowledge and Understanding:...understand reasons for and constraints on vertical relationships between activities. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures and seminars, including formative problem sets covered in seminars. The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem set and examination.

Syllabus

Context

Optional Module

L1P5 - Year 1, L1PA - Year 1, LM1D (LLD2) - Year 2, V7ML - Year 2, V7ML - Year 3, V7MM - Year 4, LA99 - Year 3, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, L1L8 - Year 2, L1L8 - Year 3, L1CA - Year 2

Pre or Co-requisites

EC208-15 Industrial Economics 1: Market Structure

EC208 is a pre-requisite for all students except L100

Summary:

Modules: EC208-15

Restrictions

May not be combined with modules EC335-15 or EC335-12

Assessment

Assessment Method

Coursework (20%) + In-person Examination (80%)

Coursework Details

Coursework (10%) , Group Problem Set (10%) , In-person Examination (80%)

Exam Timing

Summer

Exam Rubric

Time Allowed: 2 Hours

Read all instructions carefully - and read through the entire paper at least once before you start entering your answers.

There are TWO sections in this paper. Answer TWO questions in Section A (30 marks each) and ONE question in Section B (40 marks).

Answer each whole question in a separate booklet.

Approved scientific (non-graphical) pocket calculators are allowed.

You should not submit answers to more than the required number of questions. If you do, we will mark the questions in the order that they appear, up to the required number of questions in each section.

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.

Reading Lists