Aims

1. 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.
2. To develop an understanding of the role of strategic interaction and information in shaping firms and market structure.

This module will provide students with an introduction to a branch of economic thought that evolved as an offshoot from standard microeconomic theory. The aim of industrial economics is to give 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, oligopoly and collusion. The course employs a mix of theoretical analysis, empirical investigation and real life case studies.

Outline Of Syllabus

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

1. Lectures introduce the material by providing an in-depth survey of current issues in Industrial Economics.
2. Seminars give students the opportunity to review and solve problems in small groups with the seminar leader.

Assessment Rationale And Relationship

The essay tests students ability to understand the key concepts in industrial economics, analytical problems and an understanding of the implications of the solutions.