Industrial Organisation 1

Module description

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.

Additional Information:
Internationalisation:
Due to the broad scope of this module, internationalisation is embedded in the content of this module.


Sustainability:
The topics on Research and Development will involve the issue of sustainability.


Employability:
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
Module code:BEE3037
Module level:3
Academic year:2016/7
Module lecturers:
  • Dr Kaustav Das - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

BEE2025

Co-requisites:

None

Duration of module: Duration (weeks) - term 1:

11

Module aims

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 ActivitiesGuided independent studyPlacement / study abroad
221280

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Contact hours22Lectures
Guided independent study60Revision of the contents covered in lectures
Guided independent study12Review the practice problems discussed in the lecture
Guided independent study24Undertake assignment and later on review the feedback and solutions
Guided independent study10Weekly problem sets from week 8 - 10 and reviewing the solutions of them
Guided independent study22Prepare for exams

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Weekly problem sets1 hour per week (from week 8 - 10)1-5Discussions during lecture hours. Answers will be discussed and sometimes posted on ELE

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
30700

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
In class Mid-term exam301 hour1-5Assignment grade; Indicative answers will be posted in ELE
Examination (January)702 hours1-5Final grade; Exams indicative answers will be posted on VLE
0
0
0
0

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Mid-term and Final Examination Re-sit Examination (100%) 2 hours)1-5August Examination Period

Syllabus plan

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
Tirole, Ch.7
Belleflamme and Peitz Ch.5
3. Entry, Accommodation and Exit.
Tirole, Ch. 8
Belleflamme and Peitz, Ch.16
4. Mergers
Belleflamme and Peitz, Ch.15
5. The Durable Goods Monopolist.
Tirole, Chapter 1.
6. Price Discrimination by a Monopolist
Tirole, Ch.3.
Belleflamme and Peitz, Ch. 8, 9.
7. Dynamic Price Competition and Tacit Collusion
Tirole, Ch.6
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?

Yes

Origin date

01/09/2007

Last revision date

01/09/2015