316-409 Industrial Organisation

Students may not gain credit for both 316-409 Industrial Organisation and 316-616 Industrial Organisation.

316-402 Microeconomics.

316-450 Game Theory or permission from the lecturer.

This subject provides an overview of selected topics in industrial organisation. Industrial organisation deals with the structure, management and performance of firms and markets. The main emphasis will be on theoretical principles although there will be some discussion of empirical approaches. Topics to be covered include the theory of the firm, monopoly and durable goods, price discrimination, oligopoly pricing, product choice, dynamic price competition and tacit collusion, search and market intermediaries, signalling and limit pricing, product differentiation, advertising, entry and exit, research and development, and vertical relationships between firms.

• High level of development: written communication; problem solving; application of theory to practice; interpretation and analysis; critical thinking.

• Moderate level of development: use of computer software; accessing data and other information from a range of sources; receptiveness to alternative ideas.

• Some level of development: oral communication; collaborative learning; team work; statistical reasoning; synthesis of data and other information; evaluation of data and other information.

Class assignments totalling not more than 4000 words (40%) and one 2-hour examination (60%).