This course reviews basic models of market structure with focus on market power and real-life applications. We shall study a range of price and non-price strategies (such as advertising) adopted by firms and the implied market power. We shall also build a technically more complex model to study the ability of firms to collude. We shall use these richer frameworks to critically assess firms' behaviour in real markets.

Lectures: 10 x 2-hour lectures

Additional 1 hour revision lecture out with regular teaching hours

None.

Intended Learning Outcomes

Reassessments are normally available for all courses, except those which contribute to the Honours classification. For non-Honours courses, students are offered reassessment in all or any of the components of assessment if the satisfactory (threshold) grade for the overall course is not achieved at the first attempt. This is normally grade D3 for undergraduate students and grade C3 for postgraduate students. Exceptionally it may not be possible to offer reassessment of some coursework items, in which case the mark achieved at the first attempt will be counted towards the final course grade. Any such exceptions for this course are described below. 

This course will build upon the theory of the firm introduced in Microeconomic Analysis to explore a wide range of issues facing firms. Students will be introduced to various theoretical tools to be applied for the analysis of markets and industries. A thorough grounding on a wide range of pricing strategies adopted by firms and the implied market power will be facilitated through critical discussions using relevant literature and real-world scenarios. This course will equip students to carry out detailed analyses of models of dynamic competition to then be able to assess the behaviour of firms in real markets.

By the end of this course, students should be able to:

1. critically analyse static and dynamic models of competition and their applications to real industries;

2. evaluate and discuss firm behaviour (including product differentiation) to safeguard their market power;

3. carry out critical analysis of theoretical models and their applications to real market and present this analysis rigorously in written work;

4. undertake independent research, involving literature review, analysis of the empirical evidence and theoretical frameworks to assess firms' behaviour, their ability to collude and the role of public policy.

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment