316-303 Industrial Economics

Coordinator

Prerequisites

316-202 Intermediate Microeconomics.

Semester

Contact

Subject Description

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

A 2-hour examination (70%); an essay of approximately 2000 words (23%); and a class paper of approximately eight minutes length (7%).

Prescribed Texts

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