Course Catalogue

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This course reviews the basic theories of market structure with focus on market power and real-life applications. We will study a range of price and non-price strategies (such as advertising) adopted by firms and the implied market power.

Lectures: 10 x 2-hour lectures

Students who are permitted to take Honours level courses in Economics and also meet the following criteria:

■ Studying in Glasgow during semester 1 only as part of an exchange programme

■ Junior Honours students who are studying abroad in semester 2

■ Senior Honours students enrolled on an assessment-only basis, following completion of course in previous session

ECON4009 Economics of Industry 1: Basic Theories of Market Structures

Intended Learning Outcomes

Reassessments are normally available for all courses, except those which contribute to the Honours classification. For non-Honours courses, students are offered reassessment in all or any of the components of assessment if the satisfactory (threshold) grade for the overall course is not achieved at the first attempt. This is normally grade D3 for undergraduate students and grade C3 for postgraduate students. Exceptionally it may not be possible to offer reassessment of some coursework items, in which case the mark achieved at the first attempt will be counted towards the final course grade. Any such exceptions for this course are described below. 

The main aims of this course are to:

■ present, discuss and apply the basic theoretical tools for the analysis of markets and industries;

■ present and discuss a wide range of price and non-price strategies adopted by firms and the implied market power;

■ determine the rationale for various areas of public policy and critically assess these policies.

By the end of this course, students should be able to:

■ demonstrate an ability to analyse various types of strategic behaviour in industries;

■ discuss the price strategies of a monopolist firm to safeguard its market power;

■ describe and critically comment on what market power is, what are its implications and whether there is a role for public policy as regards market power;

■ critically assess different forms of public policy, based on a combination of theoretical insight and empirical relevance;

■ determine the conditions for different forms of price discrimination;

■ explain why firms can be both price and quantity competitors; why firms may make profits under Bertrand behaviour and how firms can tacitly collude.

■ explain the range of product differentiation techniques.

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