2017/18 Undergraduate Module Catalogue

LUBS2050 Industrial Economics

10 creditsClass Size: 144

Module manager: Antonio Rodriguez Gil
Email: a.rodriguezgil@leeds.ac.uk

Taught: Semester 2 (Jan to Jun) View Timetable

Year running 2017/18

Pre-requisite qualifications

LUBS1940 Economics for Management
OR
LUBS1950 Economic Theory and Applications 1

This module is approved as a discovery module

Module summary

This module focuses on how different market structures generate different outcomes for firms and consumers operating on those markets. It evenly focuses on the strategic decisions that firms can take to influence those market structures. It presents you with applications of several microeconomic tools presented in other modules, and as such is particularly well suited for students willing to take microeconomic modules on level 3.

Objectives

The aim of this module is to provide students with an understanding of the forms of competition and rivalry between private firms in a modern industrial economy. The module aims to provide an overview of the historic evolution of industrial economies while focusing on recent developments in the study of firms' behaviour.

Learning outcomes
Upon completion of this module students will be able to:
- Identify and compare different market structures (Perfect competition, monopolistic competition, monopoly and oligopoly), as well as, compare their price and output implications
- Describe and apply the fundamentals of game theory and its application to entry deterrence, and oligopoly theory in respect of price and quantity competition, and international trade
- Identify and assess the implications of product differentiation for welfare. Implications of asymmetric information for quality of goods. Implications of market structure for vertical dominance
- Describe and compare different views of profits persistence based on market structure and innovation
- Use course materials to judge the behaviour of firms in today’s economy

Skills outcomes
Upon completion of this module students will be able to demonstrate:
Transferable
- Team work and problem solving skills

Subject Specific
- Critical thinking applied to the workings of firms’ strategic behaviour
- Apply knowledge of actual markets and firms within the context of the relevant theory

Syllabus

Indicative content
‒ Perfect and monopolistic competition
‒ Product differentiation and welfare
‒ Entry barriers, limit price and investment
‒ Monopoly
‒ Vertical dominance and integration
‒ Asymmetric information, quality and advertising
‒ Oligopoly models, cooperation and international trade
‒ The SCP approach and Schumpeterian innovation

Teaching methods

Delivery type	Number	Length hours	Student hours
Lecture	11	1.00	11.00
Seminar	5	1.00	5.00
Private study hours			84.00
Total Contact hours			16.00
Total hours (100hr per 10 credits)			100.00

Opportunities for Formative Feedback

The past exam papers for this module in academic years 2002-2003 and 2003-2004 each provide a good guide both to the format and style of the exam.

Each student taking this module will be given the opportunity to attempt and submit at least one practice essay to the lecturer for marking and feedback.

Methods of assessment

Exams

Exam type	Exam duration	% of formal assessment
Standard exam (closed essays, MCQs etc)	2 hr 00 mins	100.00
Total percentage (Assessment Exams)		100.00

The resit for this module will be 100% by examination.

Reading list

The reading list is available from the Library website

Last updated: 16/01/2018

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