Industrial Organisation (ECON90005)

This subject provides an overview of selected topics in industrial organization with applications in antitrust and innovation policy. Industrial organization deals with the structure, management, and performance of firms and markets. It is concerned with firm behaviour and strategy, the implications of firm behaviour for economic efficiency, and the role public policy plays in promoting efficiency. The main emphasis will be on theoretical principles although there will be some discussion of empirical approaches. The selection of topics will be organized around key questions in antitrust and innovation policy. The discussion will be guided by practical examples and case studies.

On successful completion of this subject students should be able to:

• Explain how firms acquire market power and how they use this market power once acquired;
• Analyse how competing firms interact strategically;
• Evaluate the welfare effects of various aspects of firm behaviour;
• Evaluate the welfare effects of various types of public policy, such as antitrust policy, patent policy, and regulatory policy;
• Describe the current state of knowledge in the field of industrial organization.