This course reviews basic models of market structure with focus on market power and real-life applications. We shall study a range of price and non-price strategies (such as advertising) adopted by firms and the implied market power. We shall also build a technically more complex model to study the ability of firms to collude. We shall use these richer frameworks to critically assess firms' behaviour in real markets.

Lectures: 10 x 2-hour lectures

Additional 1 hour revision lecture out with regular teaching hours

None.

1. Written assignment, including essay; Individual; 750 words; 30%; ILOs 3-4.
2. Degree exam: in-person; Individual; 120 minutes; 70%; ILOs 1-3.

This course will build upon the theory of the firm introduced in Microeconomic Analysis to explore a wide range of issues facing firms. Students will be introduced to various theoretical tools to be applied for the analysis of markets and industries. A thorough grounding on a wide range of pricing strategies adopted by firms and the implied market power will be facilitated through critical discussions using relevant literature and real-world scenarios. This course will equip students to carry out detailed analyses of models of dynamic competition to then be able to assess the behaviour of firms in real markets.

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

1. critically analyse static and dynamic models of competition and their applications to real industries;

2. evaluate and discuss firm behaviour (including product differentiation) to safeguard their market power;

3. carry out critical analysis of theoretical models and their applications to real market and present this analysis rigorously in written work;

4. undertake independent research, involving literature review, analysis of the empirical evidence and theoretical frameworks to assess firms' behaviour, their ability to collude and the role of public policy.