Overview

The module will use the tools of game theory to interrogate the issue of market power in various models of oligopoly (static and dynamic, homogenous and differentiated goods) as well as monopoly. Various industrial classifications will be examined, and measures of concentration and market power will be analysed. The effects of market structure (including merger, entry, foreclosure and vertical relations) on competition will be studied. The module will also consider pricing strategy, product differentiation, advertising and innovation, and their effects on competition. The public policy implications of all of these topics will be considered.

Assessment Strategy

-threshold -D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives. -good -B- to B+High Standard: Very good performanceMost of the relevant information accurately deployed.Good grasp of theoretical/conceptual/practical elements.Good integration of theory/practice/information in pursuit of the assessed work'sobjectives.Evidence of the use of creative and reflective skills. -excellent -A- to A+Excellent standard: An outstanding performance, exceptionally able. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills. -another level-C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.

Learning Outcomes

• Analyse the impact of regulation on the behaviour of market participants and market outcomes.

• Apply knowledge of microeconomic and game theoretic concepts in analysing key aspects of strategic competition.

• Critically appraise the effects of various firm strategies - including pricing, product differentiation, advertising and innovation - on market outcomes.

• Critically evaluate industry classifications and measures of concentration and market power.

• Demonstrate the ability to solve and interpret analytical models of oligopoly and monopoly.

• Explain the effects of market structure on competition.