ECON3022J Industrial Economics

Academic Year 2021/2022

This module focuses on strategic decision making by firms. It is divided into two parts. In the first part we examine the outcomes, in prices and quantities, that different market structures produce. We consider perfect competition, monopoly, monopolistic competition and finally oligopoly. The second part looks at more advanced strategic decisions such as strategic pricing to deter entry, entry deterrence by means other than prices, collusion, price discrimination, product differentiation, investment in research and development, advertising. Each of these topics is analyzed using game theoretical frameworks. The approach is more analytical than descriptive.

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Curricular information is subject to change

Learning Outcomes:

On successful completion of this module students should have:
1. An understanding of pricing and quantity setting in different competitive environments.
2. An understanding of strategic actions of firms regarding entry deterrence, collusion, price discrimination, product proliferation.
3. An understanding of the possible need for market intervention and regulation by government.

Indicative Module Content:


I Introduction
-Perfect Competition
-Monopoly

II Oligopoly Theory
-Quantity Determination Models
The Cournot-Nash Model (with 2 and n firms)
The Stackelberg Model
-Price Determination Models
The Bertrand Model
The Dominant Firm price leadership Model
-Limited Capacity and Price Competition Model

III Collusion

IV Entry and Pricing Strategy to Deter Entry: Limit Pricing

V Entry and Non-Pricing Strategy to Deter Entry
-Excess Capacity
-Raising the Rival’s Cost
-Learning by Doing
-Product Proliferation

VI Business Practises.
-Product Differentiation
-Price Discrimination
-R&D
-Vertical Integration

Student Effort Hours: 
Student Effort Type Hours
Lectures

30
Autonomous Student Learning

60
Total

90
Approaches to Teaching and Learning:

The module delivery mode is lectures.
Problem sets will be assigned regularly to facilitate self-assessment and group work. Solutions to problem sets will be provided and in some cases will be explained in class in detail. 
Requirements, Exclusions and Recommendations

Not applicable to this module.


Module Requisites and Incompatibles
Required:
BDIC1034J - College English 1, BDIC1035J - College English 2, BDIC1036J - College English 3, BDIC1037J - College English 4, BDIC1047J - English for Uni Studies BDIC, BDIC1048J - English Gen Acad Purposes BDIC, BDIC2007J - English for Spec Acad Purposes, BDIC2015J - Acad Wrt & Comm Skills


 
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade
Continuous Assessment: final exam at the end of the term 2 hour End of Trimester Exam n/a Alternative linear conversion grade scale 40% No

80
Continuous Assessment: mid-term exam Week 8 n/a Alternative linear conversion grade scale 40% No

20

Carry forward of passed components
Yes
 
Remediation Type Remediation Timing
In-Module Resit Prior to relevant Programme Exam Board
Please see Student Jargon Buster for more information about remediation types and timing. 
Feedback Strategy/Strategies

• Group/class feedback, post-assessment

How will my Feedback be Delivered?

Not yet recorded.

Name Role
Dr Lucy Liu Lecturer / Co-Lecturer