ECON 3516 - Industrial Organisation III

North Terrace Campus - Semester 2 - 2018

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.

  • General Course Information
    Course Details
    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
    Available for Study Abroad and Exchange Y
    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 Staff

    Course Coordinator: Dr Paul Pezanis-Christou

    Office location: Nexus 10, Level 4, Room 4.09
    Telephone: 8313.4928
    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

    Wed.: 1:00-2:00 (Napier 209, Lecture Theatre)
    Thu. : 1:00-2:00 (Napier 209, Lecture Theatre)
  • Learning Outcomes
    Course Learning Outcomes

    On successful completion of this course, students will be able to:

    1. Explain how price and non-price competition among firms affect economic welfare.
    2. Explain how market structure affects behaviour and vice versa.
    3. Analyse and evaluate models of monopoly, oligopoly and competitive markets.
    4. Analyse 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)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    1-4
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    1-4
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    1-4
  • Learning Resources
    Recommended Resources
    Introduction 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 Learning
    Lecture notes, recordings and assignments will be posted on MyUni.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    LECTURES: 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.
    Workload

    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 Summary
    A 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


  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Mid-Term Examination: Weight: 30%, Learning objectives assessed: 1 to 4
    This exam will be held in Week 6 during lecture time (same venue). It will assess the topics covered in Weeks 1 to 5 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 Requirements
    In 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 Detail
    Mid-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.
    Submission
    No 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.
    Course Grading

    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.

    Additional Assessment
    If a student receives 45-49 for their final mark for the course they will automatically be granted an additional assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight as the original exam unless an alternative requirement (for example a hurdle requirement) is stated in this semester’s Course Outline. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has passed the course, they will receive 50 Pass as their final result for the course (no higher) but if the calculation totals less than 50, their grade will be Fail and the higher of the original mark or the mark following the Additional Assessment will be recorded as the final result.
  • Student Feedback

    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.

    The material covered in this course is marginally reviewed every year so as to better suit the students’ needs.
  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.