Industrial Economics: Competition, Strategy and Policy A
Module Code: ECU33071 (old code EC3170)
Module Title: Industrial Economics: Competition, Strategy and Policy A
- ECTS Weighting: 5
- Semester/Term Taught: Semester 1
- Contact Hours: 22 hours of lectures and 5 hours of tutorials
- Module Personnel: Lecturer - Professor Francis O’Toole
Module Learning Aims
The module provides students with an overview of how firms interact with one another as competitors and possibly as customers and suppliers, together with the implications for consumer welfare and societal welfare. As such, students will be provided with an understanding for the rationale for competition and regulatory policy, together with the tools for determining when firm conduct and/or expected market outcomes might warrant government intervention/involvement.
On successful completion of this module students will be able to:
- analyse interactions between firms using game theory concepts
- measure how consumer welfare and societal welfare change in response to different behaviours of firms in the market
- identify how cooperation between firms can help and how it can hurt final consumers
- use economic tools and examples of relevant cases to form and support arguments and opinions
Markets with a small number of interdependent sellers provide the setting for Industrial Economics: Competition, Strategy and Policy. This module stresses the importance of the role of game theory in the analysis of such markets and provides a forum for students to move beyond a two-dimensional (price and quantity) evaluation of market performance. At least some of the following topics are likely to be covered in the module: welfare economics, consumer surplus and societal welfare: competition: monopoly: contestability: barriers to entry; oligopoly and non-co-operative game theory: (Cournot, Bertrand and Stackelberg); horizontal agreements/mergers; product differentiation and monopolistic competition; and, vertical agreements.Case studies and market analyses are used throughout the module. Students are required to complete problem sets and make presentations. Students are strongly advised to review their SF notes on microeconomics and JF notes on mathematics as familiarity with material from these modules is assumed.
Recommended Reading List
There is no core module textbook. However, students should have fairly regular access to one of the following textbooks or their equivalents: Martin, S., Industrial Organisation in Context, Oxford University Press, 2010, Lipczynski, J., J.O.S. Wilson and J.Goddard , Industrial Organization: Competition, Strategy and Policy, Pearson Education Ltd., 4th edition, 2013 or Carlton, D and J. Perloff, Modern Industrial Organization, Pearson: Addison-Wesley, 4th/Global edition, 2015. Very many substitute textbooks exist and students are encouraged to browse on a regular basis.
In addition, the following book contains interesting competition policy case studies:
J. Kwoka & L. White (eds.), The Antitrust Revolution: Economics, Competition and Policy, Seventh Edition, Oxford University Press, 2018.
A more comprehensive reading list will be distributed to students at the beginning of the term.
Module Pre Requisite
EC2110 & EC2111 Intermediate Economics
ECU33072 Industrial Economics B
An assignment on a market will account for 30% of your overall grade. The penalty for late submission/no show for the assignment is 100 per cent; there will of course be no penalty imposed on late submission provided that there is an appropriate medical certificate (or equivalent). However, all assignments must be completed by the end of the teaching term (i.e. Friday 29th November 2019). The final exam will account for the remaining 70% of your overall grade.