EC353: Industrial Economics 1: Market Structure for Finalists

Ghasan Asbool
Module Leader

15 CATS - Department of Economics

Introduction

This module is available to final year Joint Degree students and 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 Aims

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

Understand the nature of empirical support for the theoretical models and demonstrate an in depth understanding of key concepts in industrial economics.

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, through better interpretability of the results.

Solve more advanced algebraic problems relating to the standard models. Demonstrate knowledge and understanding of how to formulate, model and analyse issues in industrial organisation.

Understand more of the methodology of model-building, demonstrating a capacity for abstraction and problem solving.

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

Optional Module

V7ML - Year 3, V7MP - Year 3, V7MR - Year 3, V7MM - Year 4, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, L1L8 - Year 3, LA99 - Year 3, L1CB - Year 4, L1CG - Year 4, L1CH - Year 4

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

EC139-15 Mathematical Techniques A AND

EC122-12 Statistical Techniques A AND

EC140-15 Mathematical Techniques B AND

EC124-15 Statistical Techniques B AND

MORSE/GL11 students – EC106 or EC107

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

Summary:

Modules: (EC106-30 or EC107-30) and (EC106-30 or EC107-30 or EC109-30 or EC137-15) and (EC139-15 or EC122-15) and (EC140-15 or EC124-15)

Assessment