Last modified: 25 Sep 2019 09:58
Many industries are comprised primarily of a few large firms and, hence, are not well described by the benchmarks of monopoly or perfect competition. One important theme in industrial economics studies the strategic issues related to competition in an oligopoly, and the course reviews some of the main models and issues related to such competition. A related important issue discussed in the course involves the incentives and difficulties when firms collude to try and raise prices and increase profits in their industry.
| Study Type | Undergraduate | Level | 3 |
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| Term | Second Term | Credit Points | 30 credits (15 ECTS credits) |
| Campus | Aberdeen | Sustained Study | No |
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Many industries are comprised primarily of a few large firms and, hence, are not well described by the benchmarks of monopoly or perfect competition. One important theme in industrial economics studies the strategic issues related to competition in an oligopoly, and the course reviews some of the main models and issues related to such competition. A related important issue discussed in the course involves the incentives and difficulties when firms collude to try and raise prices and increase profits in their industry.
Industrial economics traditionally also focuses on other elements of business strategy and the course does so as well. One example is the use of price discrimination and other sophisticated methods of pricing such as bundling and quantity discounts. Another strategic issue is the use of advertising and other methods to differentiate your product from those of your competitors. Investment in research and development leading to new products or more efficient production processes is a third important element of business strategy.
Game theory provides a useful framework for considering strategic interactions between firms, and elements of game theory are discussed in the course.
The strategic behaviour considered in the course can affect the performance of industries with respect, for example, to the prices charged to consumers or the levels of investment in research and development. These performance issues create a possible role for public policy.
Information on contact teaching time is available from the course guide.
| Assessment Type | Summative | Weighting | 20 | |
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| Assessment Weeks | Feedback Weeks | |||
| Feedback |
Written feedback is given on the written assignment. On a less formal basis, verbal feedback is given during tutorial discussions. |
Word Count | 2500 | |
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| Assessment Type | Summative | Weighting | 80 | |
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There are no assessments for this course.
| Assessment Type | Summative | Weighting | 100 | |
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| Assessment Weeks | Feedback Weeks | |||
| Feedback | ||||
| Knowledge Level | Thinking Skill | Outcome |
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