Industrial Organisation 1
This is a module in Industrial Organisation for the third year undergraduates. It will cover topics related to how markets work, how traders (firms, consumers, etc.) interact in a market either strategically or otherwise and how exogenous environments, including policy variables, affect the market and the participants therein using Microeconomics and Game Theory as tools.
Due to the broad scope of this module, internationalisation is embedded in the content of this module.
The topics on Research and Development will involve the issue of sustainability.
The topics covered will enable you to understand how industries work, how strategic interactions between competitors take place and how to allocate budget for Research & Development activities. This will help you to find employment in many organisations.
Full module specification
|Module title:||Industrial Organisation 1|
|Duration of module:||
Duration (weeks) - term 1: |
This module aims to introduce students to the latest theories of industrial organization. It intends to examine and evaluate strategies, behaviour and performance of firms by looking at both theoretical models and examining empirical evidence. The module draws from various theories such as information theory, agency theory and game theory, and is intended to give the students an overview of the working of service industries such as IT and telecommunications as well as the traditional industrial sector. The module’s focus is both on the understanding of the general ideas and on techniques and formal modelling.
ILO: Module-specific skills
- 1. apply the knowledge of microeconomics and game theory to analytically connect to real world observation in industries
- 2. develop ideas about several non-cooperation solution concepts in game theory
ILO: Discipline-specific skills
- 3. develop skills to undertake any advanced level microeconomics/game theory module competently
ILO: Personal and key skills
- 4. ability to analyse any situation in industries analytically to improve employability in corporate sectors
- 5. develop ability to pursue theoretical research in economics
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Guided independent study||60||Revision of the contents covered in lectures|
|Guided independent study||12||Review the practice problems discussed in the lecture|
|Guided independent study||24||Undertake assignment and later on review the feedback and solutions|
|Guided independent study||10||Weekly problem sets from week 8 - 10 and reviewing the solutions of them|
|Guided independent study||22||Prepare for exams|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Weekly problem sets||1 hour per week (from week 8 - 10)||1-5||Discussions during lecture hours. Answers will be discussed and sometimes posted on ELE|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|In class Mid-term exam||30||1 hour||1-5||Assignment grade; Indicative answers will be posted in ELE|
|Examination (January)||70||2 hours||1-5||Final grade; Exams indicative answers will be posted on VLE|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Mid-term and Final Examination||Re-sit Examination (100%) 2 hours)||1-5||August Examination Period|
1. Static Oligopoly : Standard Bertrand and Cournot Models without product different
Tirole, Ch. 5.
Belleamme and Peitz, Ch.3
2. Product Differentiation, Price Competition and Non-Price Competition
Belleflamme and Peitz Ch.5
3. Entry, Accommodation and Exit.
Tirole, Ch. 8
Belleflamme and Peitz, Ch.16
Belleflamme and Peitz, Ch.15
5. The Durable Goods Monopolist.
Tirole, Chapter 1.
6. Price Discrimination by a Monopolist
Belleflamme and Peitz, Ch. 8, 9.
7. Dynamic Price Competition and Tacit Collusion
Belleflamme and Peitz, Ch.14.
8. Introduction to Auction Theory (Reading materials will be provided)
Indicative learning resources - Basic reading
Tirole, J. (1988) Theory of Industrial Organisation, MIT Press
Belleflamme, P. and Peitz, M. (2010) Industrial Organization Markets and Strategies, CUP
Module has an active ELE page?
Last revision date