The purpose of this unit is to examine the nature of inter-firm rivalry in industries with market power. The unit begins with an exploration of the various ways in which firms can increase their market power by extracting more surplus from consumers by colluding with rivals or by excluding entrants. The topics for this part of the unit include price discrimination, product differentiation, advertising, research and development, predation and mergers. The unit also attempts to explain the various contractual and ownership linkages that exist between various stages of production. The latter involves a discussion of exclusive territories agreements, resale price maintenance, exclusive dealing, franchising and divisionalisation.
1x750wd equivalent Mid-semester test (20%), 1x750wd equivalent Group presentation (20%), 1x1000wd Essay (20%), 1x2hr Final exam (40%),
ECON6001 or ECOF6080 or ECON6701