Industrial Organisation
| Module title | Industrial Organisation |
|---|---|
| Module code | BEE3078 |
| Academic year | 2025/6 |
| Credits | 15 |
| Module staff | Dr Alejandro Robinson Cortes (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 90 |
|---|
Module description
This is a module in Industrial Organisation for the third-year economics undergraduate students. It will cover topics related to how markets work, how traders (firms, consumers, etc.) interact in markets and how exogenous environments, including policy variables, affect markets and their participants using microeconomics and game theory as tools.
We will cover some fundamental theoretical models of industrial organisation in a rigorous approach. We will pay great attention to the empirical relevance of the models discussed and explore what real-world insights we can get from those models. During this process, we will also introduce relevant game theory concepts and provide students with a basic understanding of game theory.
We will first cover price and quantity competition under different market environments, such as Cournot Competition, Bertrand Competition, and Stackelberg Competition. We will also look into the optimal price-setting strategy of a monopolist under different circumstances. We will then look into how firms can collude for higher profits and how collusion can be sustainable under repeated interaction. Last, we will look into how well-designed competition policies could stop anti-competition practices, improve efficiency and social welfare.
Additional Information:
Internationalisation:
Due to the broad scope of this module, internationalisation is embedded in the content of this module. Competition, market power, and consumer protection are prevalent in every economy. The tools and analytical frameworks discussed in this module will have abundant applications in the global economy and regional markets around the world.
Sustainability:
The tools and analytical frameworks discussed in this module can be used to explore the interaction between industrial organisation and environmental sustainability.
Employability:
The topics covered in this module will enable you to understand how firms optimise their price and quantity decisions, how strategic interactions between market participants take place, and how market power affects the pricing of products/services. These skills are very relevant for jobs in economic consulting firms, government regulators and international organisations, think-tanks, higher education institutions, and many other industries.
The assessment structure on this module is subject to review and may change before the start of the new academic year. Any changes will be clearly communicated to you before the start of term and if you wish to change module as a result of this you can do so in the module change window.
Module aims - intentions of the module
The module draws from various theories such as game theory and contract theory. The module’s focus is both on the understanding of the general ideas and on techniques and formal modelling. This module aims to introduce students to some fundamental theories of industrial organisation and some basic game theory tools. It intends to examine and evaluate strategies, behaviour and performance of firms by looking at mainly theoretical models. It will also touch on real-life examples and discuss the empirical relevance of those theoretical models.
Through this process, we aim to provide students with rigorous but manageable training in game theory and Industrial organisation. This could provide them with firm foundations for their postgraduate study in economics programmes. It could equip them with a clear analytical framework that they can rely on to think about real-world IO phenomena and boost their employability in various sectors.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. Discuss relevant game theory concepts including the basic elements of a game, representations of a game, and solution concepts;
- 2. Evaluate topics within industrial economics including price competition and quantity competition, product differentiation, merges, and price discrimination;
- 3. Analyse phenomena related to firms strategic interaction and competition regulation via theories learned in this module;
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 4. Develop the knowledge and analytical skills in order to undertake related postgraduate-level economics modules;
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 5. Develop the skills to analyse industry events to improve employability;
- 6. Pursue independent theoretical research in economics;
Syllabus plan
- Game Theory Tools for Industrial Organisation
- Static Oligopoly: Standard Bertrand and Cournot Models without product differentiation
- Product Differentiation, Price Competition and Non-Price Competition
- Mergers
- Price Discrimination by a Monopolist
- Dynamic Price Competition and Tacit Collusion
- Introduction to Competition Policy
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 27 | 123 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Learning and Teaching Activity | 22 | Lectures |
| Guided Independent Study | 65 | 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 |
| Learning and Teaching Activity | 5 | Seminars |
| Guided Independent Study | 22 | Prepare for exams |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Weekly problem sets | 1 hour per week | 1-6 | Discussions during tutorials. Answers will be discussed and sometimes posted on ELE |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 30 | 70 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Mid-Term Examination | 30 | 1 hour | 1,2,5 | Assignment grade; Indicative answers will be posted in ELE |
| Final Examination | 70 | 2 hours | 1-6 | 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 Examination | 1-hour Examination (30%) | 1,2,5 | Referral/deferral period |
| Final Examination | 2-hour Examination (70%) | 1-6 | Referral/deferral period |
Re-assessment notes
Deferral – if you miss an assessment for certificated reasons judged acceptable by the Mitigation Committee, you will normally be either deferred in the assessment or an extension may be granted. The mark given for a re-assessment taken as a result of deferral will not be capped and will be treated as it would be if it were your first attempt at the assessment.
Referral – if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be required to submit a further assessment as necessary. If you are successful on referral, your overall module mark will be capped at 40%.
Indicative learning resources - Basic reading
- Belleflamme, P. and Peitz, M. (2015) Industrial Organization: Markets and Strategies (2nd edition), Cambridge University Press.
- Tirole, J. (1988) Theory of Industrial Organisation, MIT Press
Indicative learning resources - Other resources
Further readings (if interested):
Industrial Organisation textbooks:
- Carlton, D. W. & Perloff, J. M. (2015) Modern Industrial Organization (4th edition): Global Edition. Pearson Education.
Game Theory:
- Fudenberg, D. and Tirole, J. (1991) Game Theory. MIT Press.
- Watson, J. (2013). Strategy: An Introduction to Game Theory (Third International Student Edition). WW Norton.
Economics of competition policy:
- Motta, M. (2004) Competition Policy: Theory and Practice, Cambridge University Press.
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | BEE2025 Non-requisite of BEE2043 |
| Module co-requisites | None |
| NQF level (module) | 6 |
| Available as distance learning? | No |
| Origin date | 20/01/2025 |
| Last revision date | 06/03/2025 |
