Module Identifier EC31920  
Module Title INDUSTRIAL ORGANISATION AND POLICY  
Academic Year 2005/2006  
Co-ordinator Mr Dennis A Thomas  
Semester Semester 1  
Pre-Requisite EC30220 or, EC36420  
Mutually Exclusive EC31410  
Course delivery Lecture    
  Seminars / Tutorials    
Assessment
Assessment TypeAssessment Length/DetailsProportion
Semester Exam2 Hours  75%
Semester Assessment 1500 word essay25%
Supplementary Exam as stipulated in module outline  100%

Learning outcomes

on completing this module students will have gained an understanding of the following topics:

- the role of markets and firms as alternative coordinating mechanisms
- transaction cost economics
- the determination of firm boundaries with respect to diversified and vertically integrated activities
- internal organisational forms
- the implications of the separation of the ownership and management (control) functions
- principal-agent theory and incentive contracts
- the form, implications and limitations of the structure-conduct-performance paradigm
- the relationship between, and evidence regarding, profitability and market structure
- the purpose, design and implementation of competition policy
- innovation and its promotion

Aims

The module is divided into two parts. The first section investigates economic explanations of the nature of firms and the scope of their activities. It also examines the internal organisation of firms, with particular regard to decision-making and the control problems that may occur, together with the implictions of the separation of ownership from managerial control. The second section focuses on industry and market structures, and examines the relationship between structural characteristics and firm behaviour, and various aspects of firm and industry performance. It also examines the form and purpose of competition policy and of policies to promote technological change.

Brief description

This third year module is delivered by lectures and tutorial classes and assessed by coursework essay and final examination. It treats the nature and scope of firms activities and various issues relating to industrial structure and policy.

Content

Section A
1. Economic Co-ordination: Firms, Markets and Organisations
2. Firm Boundaries: Vertical Integration
3. Firm Boundaries: Diversification
4. Internal Organisation
5. Ownership and Control

Section B
6. Structure, Conduct and Performance
7. Profitability and Market Structure
8. Competition Policy
9. Innovation: Theory and Policy

Transferable skills

Apart from attaining and improving subject specific skills the module enables students to develop and enhance a variety of transferable skills. Attendance at lectures requires students to listen and digest material and take structured notes. Participation in tutorials involves prior preparation together with communication and presentation during class. The study sheets assist students in organising their thoughts, reading and preparation of notes and self-test accumulated knowledge as they progress through the module. All aspects of the module necessarily involve time management skills.

The coursework assignment requires students to display and develop preparation, research, writing and referencing abilities within set deadlines. The final examination requires rigorous preparation and assimulation of material prior to structured thought and essay writing within a fixed time period.

Reading Lists

Books
** Recommended Text
Besanko D, Dranove D and Shanley M (2000) Economics of Strategy 2nd edition. Wiley
Lipczynski, J, Wilson, J and Goddard, J (2005) Industrial Organization: Competition, Strategy, Policy 2nd edition. Prentice Hall
Carlton, D W and Perloff, J M (2000) Modern Industrial Organization 3rd edition. Addison-Wesley
Martin, Stephen Advanced Industrial Economics edition 2r.e. . Blackwell 631217576
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Ferguson, Paul R. Industrial Economics edition 2r.e. . Macmillan 333614933
Carlton, Dennis W. Modern Industrial Organization edition 3r.e. . Addison-Wesley Educational Publishers 321011457
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Jacobson, David Industrial economics and organization New York : McGraw-Hill 77078896
Hay, Donald A Industrial economics and organization Oxford, England ; New York : Oxford University Press 198773021
Economics of the Firm Blackwell 631140751
Davies, Stephen Economics of industrial organisation London : Longman 582084237
Stead, Richard Industrial Economics McGraw 77092236
Clarke, Roger Industrial Economics edition 2r.e. . Blackwell 631198466
** Supplementary Text
Martin, Stephen Advanced Industrial Economics edition 2r.e. . Blackwell 631217576
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Ferguson, Paul R. Industrial Economics edition 2r.e. . Macmillan 333614933
Clarke, Roger Industrial Economics edition 2r.e. . Blackwell 631198466
Clarke, Roger Industrial Economics edition 2r.e. . Blackwell 631198466
Clarke, Roger Industrial Economics edition 2r.e. . Blackwell 631198466
Clarke, Roger Industrial Economics edition 2r.e. . Blackwell 631198466
Clarke, Roger Industrial Economics edition 2r.e. . Blackwell 631198466
Clarke, Roger Industrial Economics edition 2r.e. . Blackwell 631198466
Schmalensee Handbook of industrial organization Amsterdam ; London : North-Holland 444704361
Firms,Organizations and Contracts Oxf.U.P. 198774354
Carlton, Dennis W. Modern Industrial Organization edition 3r.e. . Addison-Wesley Educational Publishers 321011457
Carlton, Dennis W. Modern Industrial Organization edition 3r.e. . Addison-Wesley Educational Publishers 321011457
Carlton, Dennis W. Modern Industrial Organization edition 3r.e. . Addison-Wesley Educational Publishers 321011457
Carlton, Dennis W. Modern Industrial Organization edition 3r.e. . Addison-Wesley Educational Publishers 321011457
Carlton, Dennis W. Modern Industrial Organization edition 3r.e. . Addison-Wesley Educational Publishers 321011457
Carlton, Dennis W. Modern Industrial Organization edition 3r.e. . Addison-Wesley Educational Publishers 321011457
Carlton, Dennis W. Modern Industrial Organization edition 3r.e. . Addison-Wesley Educational Publishers 321011457
Carlton, Dennis W. Modern Industrial Organization edition 3r.e. . Addison-Wesley Educational Publishers 321011457
Thompson, Steve "Internal organisation, efficiency and profit" Oxford : Philip Allan 860031837
Jacobson, David Industrial economics and organization New York : McGraw-Hill 77078896
Jacobson, David Industrial economics and organization New York : McGraw-Hill 77078896
Hay, Donald A Industrial economics and organization Oxford, England ; New York : Oxford University Press 198773021
Hay, Donald A Industrial economics and organization Oxford, England ; New York : Oxford University Press 198773021
Hay, Donald A Industrial economics and organization Oxford, England ; New York : Oxford University Press 198773021
Hay, Donald A Industrial economics and organization Oxford, England ; New York : Oxford University Press 198773021
Hay, Donald A Industrial economics and organization Oxford, England ; New York : Oxford University Press 198773021
Hay, Donald A Industrial economics and organization Oxford, England ; New York : Oxford University Press 198773021
Economics of the Firm Blackwell 631140751
Williamson, Oliver E. Industrial Organization E.Elgar Pub. 1852781645
Hay, Donald A Industrial economics and organization : theory and evidence Oxford University Press
Jacobson, David Industrial economics and organization New York : McGraw-Hill 77078896
Jacobson, David Industrial economics and organization New York : McGraw-Hill 77078896
Jacobson, David Industrial economics and organization New York : McGraw-Hill 77078896
Jacobson, David Industrial economics and organization New York : McGraw-Hill 77078896
Jacobson, David Industrial economics and organization New York : McGraw-Hill 77078896
Jacobson, David Industrial economics and organization New York : McGraw-Hill 77078896
Economics of the Firm Blackwell 631140751
Economics of the Firm Blackwell 631140751
Economics of the Firm Blackwell 631140751
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Stead, Richard Industrial Economics McGraw 77092236
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Economics of Transaction Costs E.Elgar Pub. 1858989507
Economics of the Firm Blackwell 631140751
Besanko, David Economics of Strategy edition 2r.e. . Wiley 471254541
Davies, Stephen Economics of industrial organisation London : Longman 582084237
Davies, Stephen Economics of industrial organisation London : Longman 582084237
Davies, Stephen Economics of industrial organisation London : Longman 582084237
Davies, Stephen Economics of industrial organisation London : Longman 582084237
Stead, Richard Industrial Economics McGraw 77092236
Transaction Costs,Markets and Hierarchies Blackwell 631188983
Winter, Sidney G The Nature of the firm New York ; Oxford : Oxford University Press 195065905
Economic Nature of the Firm edition 2r.e. . Camb.U.P. 521556287
Stead, Richard Industrial Economics McGraw 77092236
Stead, Richard Industrial Economics McGraw 77092236
Stead, Richard Industrial Economics McGraw 77092236
Stead, Richard Industrial Economics McGraw 77092236
Ferguson, Paul R. Industrial Economics edition 2r.e. . Macmillan 333614933
Ferguson, Paul R. Industrial Economics edition 2r.e. . Macmillan 333614933
Ferguson, Paul R. Industrial Economics edition 2r.e. . Macmillan 333614933
Milgrom, Paul R "Economics, organization, and management" Englewood Cliffs, NJ : Prentice-Hall 132246503
Economic Nature of the Firm Camb.U.P. 521311403
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Douma, Sytse Economic Approaches to Organizations edition 3r.e. . Financial Times Prentice Hall 273651994
Martin, Stephen Advanced Industrial Economics edition 2r.e. . Blackwell 631217576

Notes

This module is at CQFW Level 6