ECON 3516 - Industrial Organisation III
North Terrace Campus - Semester 2 - 2014
General Course Information
Course Code ECON 3516 Course Industrial Organisation III Coordinating Unit School of Economics Term Semester 2 Level Undergraduate Location/s North Terrace Campus Units 3 Contact Up to 3 hours per week Assumed Knowledge ECON 2009 or ECON 2506 Course Description This course in applied microeconomics is concerned with the behaviour and performance of firms in markets, with a particular focus on strategic interactions. It goes beyond the perfectly competitive model by considering the nature of market power and how that affects firm behaviour and subsequently consumers and policy-makers. Topics covered may include theories of monopoly, price discrimination, oligopoly, auctions, vertical and horizontal integration, economies of scale and scope, network externalities, and regulation.
Course Coordinator: Associate Professor Paul Pezanis-ChristouOffice location: Nexus 10, Level 4, Room 4.09
The full timetable of all activities for this course can be accessed from Course Planner.Lecture times:
DAYS TIME Tuesdays 2:10 – 3:10 Wednesdays 2:10 – 3:10
Course Learning OutcomesOn successful completion of this course students will be able to:
1 Understand how price and non-price competition among firms affect economic welfare 2 Understand how market structure affects firm behaviour and vice versa 3 Analyse and evaluate models of monopoly, oligopoly and competitive markets 4 Understand basic antitrust and regulatory policy issues
University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s) Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1, 2, 3, 4 The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 2, 3, 4 An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 3, 4 Skills of a high order in interpersonal understanding, teamwork and communication. 2, 4 A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 2, 4
Recommended ResourcesIntroduction to Industrial Organization, L. Cabral, MIT Press, 2000.
Modern Industrial Organization, by D. Carlton and J. Perloff, Pearson Addison Wesley, 4th Edition, 2005.
Industrial Organisation: A Strategic Approach, by J. Church and R. Ware, McGraw-Hill, 2000. Freely available at: http://homepages.ucalgary.ca/~jrchurch/page4/page5/page5.html
Online LearningLecture notes and assignments will be posted on MyUni.
Learning & Teaching Activities
Learning & Teaching ModesLECTURES: The purpose of the lectures is to provide a logical structure for the topics that make up the course, to emphasize the important concepts and methods of each topic, and to provide relevant examples to which the concepts and methods are applied.
TUTORIALS: The purpose of the tutorial meetings is primarily to provide an opportunity for small group discussion of the economic concepts and methods, and to use those concepts and methods to understand applied problems (the exercises) which are assigned every week.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.Students of this course are expected to:
· attend all lectures and all tutorials
· commit approximately 8 hours per week to private study, that is, outside regular classes.
Learning Activities SummaryA tentative list of topics to be covered in the course is the following:
Week Topic 1 Introduction and review of main concepts 2 Monopoly: Sources of Market Power 3 Monopoly: Non-Linear Pricing and Price Discrimination 4 Static Models of Oligopoly 5 Dynamic Models of Oligopoly 6 Product Differentiation 7 Entry Deterrence 8 Mid-Term exam 9 Antitrust Economics: Predatory Pricing 10 Antitrust Economics: Vertical Integration and Vertical Restraints 11 Antitrust Economics: Horizontal Concentration 12 Regulatory Economics: Optimal Pricing for Natural Monopoly
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
Assessment SummaryMid-Term Examination: Weight: 30%, Learning objectives assessed: 1 to 4
This exam will be held on Tuesday September 16, during lecture time (same venue). It will assess the topics covered in Weeks 1 to 6 and will consist of exercises to be solved and short answer questions.
Tutorials: Weight: 20%, Learning objectives assessed: 1 to 4
Every week, there will be an assignment of exercises. Students are requested to attempt to do all of the assigned exercises and to have their answers and solutions written on a separate sheet to be handed in at precise dates and time (to be determined at the start of the semester). See the Assessment Detail section below for the grading of assignments and the determination of the tutorial grade.
Final Examination: Weight: 50%, Learning objectives assessed: 1 to 4
This exam will be held in the University examination period and will be two hours long. It will be on materials from the entire course though approximately 70% of the questions will be from post-midterm topics.
Assessment Related RequirementsIn order to pass this course, students must achieve:
- a composite mark of at least 50 out of 100
- at least 45 out 100 in the final exam.
Assessment DetailMid-Term Examination: Failure to sit the mid-term examination will result in receiving zero points, whether a medical certificate is provided or not. The grade of the final exam will then account for 80% of the overall grade.
Tutorials: Every week, the tutor will randomly select one of the assigned exercises to be grade. The grade for the selected exercise will be 0, 1, 3 or 5, depending on the quality of the answer provided. Particular attention will be given to the work out of the exercise’s solutions. The solutions’ work out will be ‘documented’ if it shows the details of the calculations performed (if any) and the reasoning used to reach the reported answers or solutions.
The grading rule to be used is: 0: no attempt to do the selected exercise, 1: a majority of incorrect or undocumented answers, 3: a majority of correct and documented answers, 5: all answers are documented and correct.
Attendance to the tutorial meetings is compulsory. If, owing to exceptional circumstances, you are unable to attend your usual tutorial, you may try to attend another tutorial in the same week. Occasional absence will be tolerated only once during the semester. If you are unable to attend a tutorial for medical reasons, you should provide a medical certificate. If the medical certificate covers a period longer than a week, you will need to organise some other arrangements with the lecturer. The same applies if you provide more than two medical certificates during the semester. Collaboration on assignments is allowed and encouraged, but final solutions must be written independently. Each student should participate fully in solving each problem and understand the answer.
The grade for the tutorial is determined by the average of the eight best grades obtained for the assignment.
Final Examination: This exam will be held in the University examination period and will be two hours long. It will be on materials from the entire course though approximately 70% of the questions will be from post-midterm topics.
SubmissionNo late assignments will be accepted. Failure to hand in an assignment will result in a zero mark. Assignments must be handed in at the Professions Student Hub, located at Nexus 10 (corner of Pulteney St and North Tce) No assignment will be collected by your lecturer.
Each assignment should include a signed copy of the University’s cover sheet.
Assignments will be handed back at tutorials meetings. The last assignment will be available for collection at the hub only.
There will be no alternative assessment opportunities.
Grades for your performance in this course will be awarded in accordance with the following scheme:
M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending
Further details of the grades/results can be obtained from Examinations.
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through Access Adelaide.
The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.
SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.This course will be marginally revised since it was last taught in 2013: the material covered in lectures will include more real-world examples and the tutorial exercises will be revamped so as to better suit the students’ needs.
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