Course Co-ordinator: Professor J Swierzbinski

Pre-requisite(s): EC 2003.

Note(s): The course runs every two years, starting in 2014/15. This course will not be available in 2012/13.

This course covers many of the traditional topics of industrial economics.

This course covers many of the traditional topics of industrial economics.
Many industries are comprised primarily of a few large firms and, hence, are
not well described by the benchmarks of monopoly or perfect competition.
One important theme in industrial economics studies the strategic issues related to competition in an oligopoly, and the course reviews some of the main models and issues related to such competition. A related important issue discussed in the course involves the incentives and difficulties when firms collude to try and raise prices and increase profits in their industry.

Industrial economics traditionally also focuses on other elements of business
strategy and the course does so as well. One example is the use of price discrimination and other sophisticated methods of pricing such as bundling and quantity discounts. Another strategic issue is the use of advertising and other methods to differentiate your product from those of your competitors. Investment in research and development leading to new products or more efficient production processes is a third important element of business strategy.

Game theory provides a useful framework for considering strategic interactions between firms, and elements of game theory are discussed in the course.

The strategic behaviour considered in the course can affect the performance of industries with respect, for example, to the prices charged to consumers or the levels of investment in research and development. These performance issues create a possible role for public policy.

[eg. 3 one-hour lectures (Tue, Wed, Thur at 11) and 1 one-hour tutorial (to be arranged) per week].

1 two-hour lecture and 1 one-hour lecture per week and 8 one-hour tutorials over the duration of the course.

1st Attempt: 1 three-hour examination (80%); continuous assessment (20%) consisting of a graded written essay (maximum 2,500 words).

Resit: 1 three-hour written examination (100%).