ECON 304 : Firms and Markets

Business and Economics

2020 Semester One (1203) (15 POINTS)

Course Prescription

An introduction to Industrial Organisation, the analysis of markets with imperfect competition. Industrial Organisation is concerned with the interdependence of market structure, firm behaviour and market outcome. Basic concepts of game theory will be systematically introduced and applied to study strategic firm behaviour in a variety of general and more industry-specific market settings. In each case, we will analyse the implications of the market behaviour for consumers and society and explore the potential role for public policy with instruments like regulation, competition policy and patent policy.

Course Overview

The goal of this course is to equip students with a basic understanding of the functioning of imperfectly competitive markets, which they will find useful in subsequent employment, postgraduate study or research. The course aims to combine theory and case studies to enable students to better understand market outcomes in a variety of different industry settings. 
Successful completion of this course enables students
  • To become familiar with modern theories of imperfect competition;
  • To understand the interdependence of market structure, firm behaviour and market outcome; 
  • To learn about basic game theory tools; 
  • To know how to apply basic game theory tools to analyse market situations; 
  • To critically evaluate the market outcome of an industry based on its general characteristics; and 
  • To understand basic ideas of competition policy and regulation. 

Course Requirements

Prerequisite: ECON 201 and 15 points from ENGGEN 150, ENGSCI 111, MATHS 108, 130, 150, 153

Capabilities Developed in this Course

Capability 1: Disciplinary Knowledge and Practice
Capability 2: Critical Thinking
Capability 3: Solution Seeking
Capability 4: Communication and Engagement
Capability 5: Independence and Integrity
Capability 6: Social and Environmental Responsibilities
Graduate Profile: Bachelor of Commerce

Learning Outcomes

By the end of this course, students will be able to:
  1. Understand various industrial organisation (IO) theories (Capability 1)
  2. Analyse the interdependence of market structures, firm behaviour and market outcomes (Capability 2)
  3. Apply game theory tools to analyse various market situations (Capability 3)
  4. Critically evaluate anti-competitive practices and conduct (Capability 2, 4.3 and 5.2)
  5. Acquire basic ideas of competition policy and regulation (Capability 6)
  6. Critically elaborate and effectively present as part of a group (orally) and individually (in writing), core aspects of a selected case study (Capability 1, 2, 4.1, 4.2, 4.3 and 6)

Assessments

Assessment Type Percentage Classification
In-class Written Test 60% Individual Test
In-class Group & Individual Oral Presentation on a Selected Case Study 20% Group & Individual Coursework
Written Report on a Selected Case Study 20% Individual Coursework
Assessment Type Learning Outcome Addressed
1 2 3 4 5 6
In-class Written Test
In-class Group & Individual Oral Presentation on a Selected Case Study
Written Report on a Selected Case Study

Workload Expectations

This course is a standard 15 point course and students are expected to spend 10 hours per week involved in each 15 point course that they are enrolled in.

For this course, weekly, you can expect 3 hours of lectures, a one-hour tutorial, 3 hours of reading and thinking about the content and 3 hours of work on assignments and/or test preparation.

Learning Resources

The Prescribed Textbook for this course is: 
  • Contemporary Industrial Organization: A Quantitative Approach, by Lynne Pepall, Daniel Jay Richards, George Norman, 2011 Edition, John Wiley & Sons, Inc. ISBN: 978-0-470-59180-2. An e-book version of this title is also available at  http://au.wiley.com/WileyCDA/WileyTitle/productCd-EHEP001760.html 
Other Recommended Bibliographic References to consult are:
  •  Competition Policy: Theory and Practice, by Massimo Motta, Cambridge University Press 2004. ISBN: 0-512-81663-7. 
  • An Introduction to Game Theory, by Martin Osborne, Oxford University Press. ISBN-13: 978-0-19-512895-6. 
  • Further readings to be given during the semester (journal articles, newspaper articles, etc., related to the topics taught). 
There is no coursebook provided for this course. Instead, all lecture slides and tutorial exercises with detailed solutions will be provided on Canvas before each session. Students are expected to read and review the related material in the prescribed textbook and any suggested readings. 

Digital Resources

Course materials are made available in a learning and collaboration tool called Canvas which also includes reading lists and lecture recordings (where available).

Please remember that the recording of any class on a personal device requires the permission of the instructor.

Academic Integrity

The University of Auckland will not tolerate cheating, or assisting others to cheat, and views cheating in coursework as a serious academic offence. The work that a student submits for grading must be the student's own work, reflecting their learning. Where work from other sources is used, it must be properly acknowledged and referenced. This requirement also applies to sources on the internet. A student's assessed work may be reviewed against online source material using computerised detection mechanisms.

Inclusive Learning

All students are asked to discuss any impairment related requirements privately, face to face and/or in written form with the course coordinator, lecturer or tutor.

Student Disability Services also provides support for students with a wide range of impairments, both visible and invisible, to succeed and excel at the University. For more information and contact details, please visit the Student Disability Services’ website at http://disability.auckland.ac.nz

Special Circumstances

If your ability to complete assessed coursework is affected by illness or other personal circumstances outside of your control, contact a member of teaching staff as soon as possible before the assessment is due.

If your personal circumstances significantly affect your performance, or preparation, for an exam or eligible written test, refer to the University’s aegrotat or compassionate consideration page: https://www.auckland.ac.nz/en/students/academic-information/exams-and-final-results/during-exams/aegrotat-and-compassionate-consideration.html.

This should be done as soon as possible and no later than seven days after the affected test or exam date.

Student Feedback

At the end of every semester students will be invited to give feedback on the course and teaching through a tool called SET or Qualtrics. The lecturers and course co-ordinators will consider all feedback and respond with summaries and actions.

Your feedback helps teachers to improve the course and its delivery for future students.

Class Representatives in each class can take feedback to the department and faculty staff-student consultative committees.

Student Charter and Responsibilities

The Student Charter assumes and acknowledges that students are active participants in the learning process and that they have responsibilities to the institution and the international community of scholars. The University expects that students will act at all times in a way that demonstrates respect for the rights of other students and staff so that the learning environment is both safe and productive. For further information visit Student Charter (https://www.auckland.ac.nz/en/students/forms-policies-and-guidelines/student-policies-and-guidelines/student-charter.html).

Disclaimer

Elements of this outline may be subject to change. The latest information about the course will be available for enrolled students in Canvas.

In this course you may be asked to submit your coursework assessments digitally. The University reserves the right to conduct scheduled tests and examinations for this course online or through the use of computers or other electronic devices. Where tests or examinations are conducted online remote invigilation arrangements may be used. The final decision on the completion mode for a test or examination, and remote invigilation arrangements where applicable, will be advised to students at least 10 days prior to the scheduled date of the assessment, or in the case of an examination when the examination timetable is published.

Published on 20/12/2019 10:36 a.m.