316-303 Industrial Economics

Coordinator:

Prerequisite/s:

Timetable:

Contact:

Objectives:

On completion of this subject students should be able to:

• extend their knowledge of industrial economics via the independent study of books and articles dealing with theory and policy in this area and by taking advanced subjects dealing with these matters;

• judge the usefulness and the limitations of existing theory in the area of industrial economics;

• critically evaluate contemporary policy debates with reference to economic principles as applied to industrial economics.

Content:

The economic behaviour of industries, markets and firms, including: output and pricing decisions, advertising, and the growth of firms. Development of economic theories and their use (with relevant evidence) to explain the behaviour of firms and to predict the consequences of that behaviour for the welfare of society. Microeconomic reform and the question of whether the government should 'intervene' in industry, with a critical study of current government policy towards industry (its policy in relation to monopolies and restrictive practices, research and development, tariffs, prices and foreign investment). A detailed study of at least one major industry. The subject is related to Australia but international comparisons, including comparisons with Asian economies, are made where appropriate.

Assessment:

Prescribed Texts:

• Carlton D W and Perloff J M, Modern Industrial Organisation, Harper Collins, 2nd ed. 1994.