Industrial Organisation

Module code: ECN314

Industrial organisation is the area of economics which studies how the structure and other characteristics of industries affect firm behaviour and market outcomes. In this module, you will build on and expand on your knowledge of some topics already introduced in ECN201 Intermediate Microeconomics related to market structure such as oligopoly theory.

You will also become familiar with further oligopolistic models as well as the effect of market structure and other characteristics of markets on innovation. A substantial part of the module will be devoted to network economics; in particular, competition models in the internet related industries. Throughout the module, we will pay particular attention to economic policy and real world cases.

Please note that this module is highly mathematical in nature. Therefore a good command of mathematics is required.

Aims of the module

The module aims to:

  • provide a broad understanding of industrial organisation theory
  • apply concepts, theories and methods used in industrial organisation to the analysis of different firms' strategies and economic policies

Learning objectives

At the end of the module students should:

  • be able to demonstrate understanding of the effects of industry characteristics (such as structure, differentiation, network effects and firm dominance) on firms' strategies, market outcomes and innovation, using concepts and models from industrial organisation
  • be aware of the policy challenges posed by the above industry characteristics in terms of competition and welfare and possible policy responses
  • be able to relate the presented models to real wold cases and policy applications
  • have developed the technical skills required to understand standard industrial organisation models

Syllabus

Market power and welfare. Further oligopoly models. Network economics. Innovation. Collusion. Mergers (vertical and horizontal). Address models.

Teaching methods

Lectures and workshops

Assessment

Unseen end of module examination (100%)

Basic reading

We advise you not to buy books before the module begins, as the reading list may change. If you wish to read in advance, look for these texts in the University library

Belleflamme, P & Peitz, M (2015), Industrial Organization: Markets and Strategies, Cambridge University Press

Prerequisites ECN201

Module leader Tobias Wenzel

Please note that the leader may change before the module begins

Semester Autumn

Credits 20