Prof Mark Schankerman 32L4.30

This course is available on the BSc in Business Mathematics and Statistics, BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Economics and Economic History, BSc in Economics with Economic History, BSc in Environmental Policy with Economics, BSc in Geography with Economics, BSc in Government and Economics, BSc in Management, BSc in Mathematics and Economics, BSc in Mathematics with Economics, BSc in Philosophy and Economics, BSc in Social Policy and Economics and Diploma in Accounting and Finance. This course is available as an outside option to students on other programmes where regulations permit and to General Course students.

Students must have completed Microeconomic Principles I (EC201) or Microeconomic Principles II (EC202).  Students who believe they have completed an equivalent course instead of one of these must receive permission from Prof Schankerman first.

The aim of the course is to understand the structure, conduct, and performance of firms by studying analytical models of imperfect competition, determinants of industrial structure, entry in strategic settings, government regulation of natural monopolies, and markets with asymmetric information. The main subjects include monopoly, price discrimination, vertical and horizontal restraints, transactions costs and contract design, game theoretic models of firm behaviour, collusive arrangements, product differentiation, and strategic entry deterrence. Economic models will be used to address policy issues and will be illustrated in classes with case studies.

15 hours of lectures and 8 hours of classes in the MT. 15 hours of lectures and 10 hours of classes in the LT. 2 hours of classes in the ST.

At least four problem sets will be required and assessed by class teachers.

A detailed reading list will be provided at the beginning of the course. The primary text is Tirole’s The Theory of Industrial Organization. Specific sections will be assigned (others are too advanced for this course). A useful, less technical supplementary text is Church and Ware’s Industrial Organization: A Strategic Approach.  There will be additional required readings on empirical articles and case studies on competition policy.

Exam (100%, duration: 3 hours) in the main exam period.