ECON 702 : Industrial Organisation

Business and Economics

2023 Semester Two (1235) (15 POINTS)

Course Prescription

Concerned with interdependence of firm behaviour, market structures and implications for consumers and society. Concepts from game theory are introduced and applied to study strategic firm behaviour in a variety of general and more specific market settings; Coverage includes the potential role for public policy with instruments like competition policy, patent policy and the regulation of public utilities such as telecommunication, electricity, water and gas.

Course Overview

A background in microeconomics (e.g. ECON 301 Advanced Microeconomics or equivalent) is highly recommended. Good knowledge of game theory and mathematical economics is also advantageous for understanding the underlying mechanisms of the various models covered in this course. Good communication skills (both oral and written) are also a plus. Please make sure that you are well equipped with the above-recommended knowledge before enrolling in this course. 

This is an elective course that is designed to deepen the knowledge acquired in microeconomics and related subjects, specifically focusing on modelling imperfect competition, firms' strategic behaviour and anti-competitive practice. After reviewing some key models of firms' behaviour as well as of firms' misconduct, we will discuss frontiers of research in the field and applications of industrial organisation (IO) to a variety of sub-fields. You will present and discuss selected journal articles and write reports about them. This type of preparation and training is highly sought after both in the private and public sectors employing expert economic analysts (e.g. governmental agencies and consulting companies alike). You will strengthen your analytical and communication skills and acquire knowledge about how markets function, what their failures can be, and what remedies could be employed to restore competitiveness in marketplaces. Students from engineering, mathematics, public policy, law and economics, and dual degrees involving economics tend to perform well in this course and are most welcome too.

Course Requirements

No pre-requisites or restrictions

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

Learning Outcomes

By the end of this course, students will be able to:
  1. Demonstrate a mastery of the main models and theories in industrial organisation (Capability 1, 3 and 5.1)
  2. Analyse and evaluate market outcomes in a variety of industry settings (Capability 1, 2 and 3)
  3. Critically elaborate and summarise both orally and in writing theoretical models, and their findings, which are at the frontier of research in the field (Capability 4.1, 4.2 and 4.3)
  4. Acquire and apply the necessary skill-set, key to becoming a competent consultant industry analyst, a policy advisor, or a researcher further specialising in the field (Capability 1, 2 and 3)
  5. Be able to undertake further studies in economics and engage in research work on related topics (if desired) (Capability 1, 2 and 5.1)

Assessments

Assessment Type Percentage Classification
Presentation 30% Individual Coursework
Discussions 15% Individual Coursework
Reports 40% Individual Coursework
Assignments 15% Individual Coursework
Assessment Type Learning Outcome Addressed
1 2 3 4 5
Presentation
Discussions
Reports
Assignments

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, you can expect 3 hours of lectures and 7 hours of reading, thinking, and elaborating the content for the purpose of completing the required coursework.

Delivery Mode

Campus Experience

The following expectations apply for students enrolled in this course:

  • Attendance is highly recommended at scheduled activities including lectures, oral presentations, and related discussions to receive credit for the various components of the course.
  • Lectures, oral presentations, and discussions will be available as recordings. 
  • The activities for the course are scheduled as a standard weekly timetable. 
What students enrolled in this course can expect:

  • Where possible, study material will be available at course commencement and additional material will be released progressively throughout the course and as needed (this includes recordings of live lectures, made available week by week).
  • This course runs to the University semester timetable and all the associated completion dates and deadlines will apply.

Learning 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.

Belleflamme, P. and M. Peitz (2015). Industrial Organization: Markets and Strategies. 2nd edition, Cambridge University Press (http://www.cambridge.org/9781107687899). Note that its e-book version is also available for purchase.

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.

We value students' feedback. Timely communication about what students like and would like to see more of, and what they like less and would like to see less of, will make it for a more enjoyable teaching and learning experience, as well as help to improve the design and delivery of future oerings of this course.

Other Information

Please refer to the Canvas site for any updates and announcements about this course. Any important communication will be posted on that site for you to be informed about it promptly.

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.

Class Representatives

Class representatives are students tasked with representing student issues to departments, faculties, and the wider university. If you have a complaint about this course, please contact your class rep who will know how to raise it in the right channels. See your departmental noticeboard for contact details for your class reps.

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 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.

Learning Continuity

In the event of an unexpected disruption, we undertake to maintain the continuity and standard of teaching and learning in all your courses throughout the year. If there are unexpected disruptions the University has contingency plans to ensure that access to your course continues and course assessment continues to meet the principles of the University’s assessment policy. Some adjustments may need to be made in emergencies. You will be kept fully informed by your course co-ordinator/director, and if disruption occurs you should refer to the university website for information about how to proceed.

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 students may be asked to submit 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. In exceptional circumstances changes to elements of this course may be necessary at short notice. Students enrolled in this course will be informed of any such changes and the reasons for them, as soon as possible, through Canvas.