Module Catalogue 2024/25

Pre Requisite Comment

N/A

Co Requisite Comment

None

Aims

The module aims to develop the ability of students to apply tools of modern microeconomics to examine the reasons for the existence of firms, the diversity of their forms, the way they interact, and how government policy influences this. The module will provide students with an introduction to a branch of economic thought that evolved as an offshoot from standard microeconomic theory. It will provide students with a clearer understanding of the real-world causes and effects of various market structures on the choices of firms in terms of their performance. The course builds upon the tools learnt in intermediary microeconomics and covers issues such as market concentration, market structure, entry barriers, oligopoly, collusion, firm innovation, advertising and policy. The course employs a mix of theoretical analysis, empirical investigation and real life case studies.

Outline Of Syllabus

Market Structure and determinants of market structure; measurement and determination of market concentration; static models of oligopoly behaviour - how are major policy variables (price or quantity, advertising, R&D) determined in an interdependent oligopolistic market; impact of market structure, firm conduct and strategic behaviour; industrial economic policy.

Intended Knowledge Outcomes

To provide students with an understanding of how economic theory can help in understanding firm behaviour and how it relates to market structure and market behaviour.

On completion of the module students should understand issues such as: how firm behaviour interacts with market structure; market concentration; key features underlying firms’ ability to collude; key aspects of firms’ decisions to enter or exit from a market; the role game theory plays in modern industrial economics; firm strategy; and some understanding of policy aspects of industrial economics.

In addition, in studying the material of this module, students should find that they gain a deeper understanding of how economic theory can be applied to empirical questions, how empirical analysis can be applied to economic theory as well as an enhanced grasp of the importance of game theory in modern economics.

Intended Skill Outcomes

The ability to apply analytical reasoning to problems of industrial economics and policy: concepts relating to firm decision-making skills and strategic thinking (information, firm strategies, outcomes and uncertainty); understanding of markets and associated efficiency considerations; policy implications and reflections; numeracy, problem-solving and statistical skills. All skills form part of summative assessment.

Teaching Rationale And Relationship

Lectures introduce the material by providing an in-depth survey of current theoretical and empirical issues in Industrial Economics.
Small group teaching is used to take students through problem sets and empirical applications.
Independent study allows students to go over lecture content, enhance lecture materials through course readings, work on problems introduced in seminars, and revise material in preparation for the final assessment.

Assessment Rationale And Relationship

Exams are the standard tool for examining theoretical material under time constraints. The exams test students ability to tackle problems in industrial Economics and understanding of the implications. It is the appropriate way of assessing theoretical knowledge. Alternative examination of 24 hour online take-home exam in the event of in-person assessments not taking place.

General Notes

N/A