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Unit of study_

ECON6006: Market Structure and Strategic Behaviour

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.

Code ECON6006
Academic unit Economics
Credit points 6
Prerequisites:
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ECON6001 or ECOF6080 or ECON6701
Corequisites:
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None
Prohibitions:
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None

At the completion of this unit, you should be able to:

  • LO1. understand the theoretical models that form the body of modern industrial organisation
  • LO2. understand microeconomic and game theoretic concepts and apply analytical models for processing and interpreting information
  • LO3. explain the main microeconomic models describing the determinants of firm behaviour
  • LO4. explain models of market behaviour and identify the likely outcomes from the interaction of firms and consumers
  • LO5. distinguish between competing explanations of market behaviour and critically evaluate competing theories
  • LO6. participate in discussions of policy relating to markets in which firms interact strategically.

Unit outlines

Unit outlines will be available 1 week before the first day of teaching for the relevant session.