module specification

This module aims to provide and in-depth knowledge and understanding of the economic laws and mechanisms that define and rule the economic environment of industries. The focus is mainly put on imperfectly competitive industries and the rationale of regulation and means of action of governments are investigated.

EC5006 Microeconomics or EC5001 Business Economics or equivalent

The module aims to provide students with:

1. a systematic knowledge and understanding of industrial economics and regulation, including a critical awareness of current issues in the subject and the available evidence;
2. an ability to apply economic principles and analysis in a variety of contexts including in business and government;
3. a range of transferable and subject-specific skills that will be of value in employment and self-employment;
4. an appreciation of the economic dimension of wider social, regional and political issues.

It also aims to develop students' skills, in particular: academic study skills; self assessment and reflection; literacy; academic study skills; subject research; data analysis; applied analysis; quantitative analysis; critical thinking; problem solving; interpersonal and team-working; entrepreneurship; and communication, including oral presentation.

Monopolistic competition
Models of duopoly and oligopoly
The sources of market power
Market concentration and market power
Market entry and deterrence
Contestable markets
Mergers and acquisitions
Welfare economics of market power
Competition and antitrust policies: rationale and applications
Research and development and innovation

Students’ learning is organised around direct contact time with the teaching team, and refective independent learning. The direct contact time takes place through lectures, seminars and group workshops. Students are expected to complement this 'formal' learning activity with further reading of the material suggested in the teaching sessions, solving realistic business problems using economic analysis, research, writing, planning and preparation for group presentations, class tests, and the final exam.

Student contact time will normally be 3 hours per week. Lectures will typically be around 1 hour duration and will deliver core subject knowledge in industrial and regulation economics. As this module emphasises the development of theory, policy and application a whole-group workshop of around 1 hour will provide examples of how to use economics to understand and analyse issues related to industrial organisation. In the 1 hour seminar the emphasis is on student learning through participation, formative feedback and active learning.

The contact time with teaching teams will be organised around a range of learning activities including active learning to acquire knowledge and understanding, problem solving, problem based learning, presentations, analysis of case studies, group reading and analysis of research papers, discussion of policy issues and debate. Many activities require students to carry out independent work prior to meetings with lecturers. Increasingly through the module students are required to engage with research published in high level academic journals and research institutes.

Professional and transferable skills are developed in lectures and seminars, and through independent directed learning and assessment. Skills development is enhanced through problem solving and problem based learning practiced in seminars, working co-operatively in groups for assessments and group presentations. These presentations will review and discuss: imperfect market and industry related issues and problems faced by firms and governments, government policy interventions, and distributional and ethical issues. Inititative and independance is developed progressively through the module such that students are required to take greater responsibility of their work.

The module makes extensive use of blended learning  through use of virtual learning environment platforms (WebLearn, Publisher E-resources) in which module lecture material, course handbooks, test questions, previous assessment with feedback, and other material is placed.  Other ICT resources include links to key web resources such as Government departments, and research institutes.

On successful completion of this module students will be able to:

1. demonstrate a broad knowledge and a systematic understanding of industrial economics and regulation covering theory, policy and application;
2. explain how various economic factors influence industry market structure, and appreciate the social issues that may arise;
3. apply a range of specialist skills to the organizations in which they as specialists may operate, including the application of analytical or quantitative techniques;
4. marshal evidence and assimilate, structure, analyse and evaluate qualitative and quantitative data to understand and critically evaluate policy issues in the subject;
5. work effectively in groups and demonstrate team-working, planning, conflict resolution, communication, self-management, time-management, and self-presentation skills.

The assessment strategy is based on three distinct elements:

• A 2,000 words coursework requires students to apply the concepts and tools studied in class to analyse the market structure of a particular industry
• A group presentation with artefacts (1,000 words) which will require students to study and analyse regulation issues related to particular industries. This will enable students to further develop their ability to work effectively in groups, undertake team activity, plan and allocate functions, seek to resolve any conflict, communicate effectively, work under binding time constraints, and undertake a presentation. Marks for the group presentation may be attributed individually to reflect the possible differences of output. Students will be required to produce a contribution statement which summarises the individual contributions of students in the group.
• A three-hour final exam which aims to assess the knowledge and understanding, as well as the ability to apply the concepts and theories studied in class. Students will be required to write answers to questions addressing the underlying principles or issues of the subject matter or provide solutions to technical questions.

Church, J. and Ware, R. (2000). Industrial Organization: A Strategic Approach. Irwin/McGraw-Hill
Competition Policy, Theory and Practice (2004), Massimo Motta (338.6048 MOT)
Economics of Regulation and Antitrust (2005), W. Kip Viscusi, Joseph E. Harrington and John M. Vernon, 4th Edition (338.973 VIS)
Schmalensee, R. and Willig, R., editors (1989). Handbook of Industrial Organization, volume 1. Elsevier.
Armstrong, M. and Porter, R., editors (2007). Handbook of Industrial Organization, volume 3. Elsevier.

Economics Research Network on Industrial Organisation and Regulation,
http://www.ssrn.com/update/ern/ern_io.html
Econport Industrial Organisation,
http://www.econport.org/econport/request?page=web_or_list&categoryID=9