23504 Economics of Competition and Strategy
Warning: The information on this page is indicative. The subject outline for a
particular session, location and mode of offering is the authoritative source
of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.
Subject handbook information prior to 2024 is available in the Archives.
Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksRequisite(s): 23567 Intermediate Microeconomics OR 25567 Intermediate Microeconomics
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Anti-requisite(s): 23593 Industrial Organisation
Description
This subject examines the relationships between firms strategies and the market and regulatory environment in which they operate. The subject introduces students to the methods and models used by economists to analyse the behaviour of firms and industries. The models are applied to a range of problems in both the private and public sectors.
Subject learning objectives (SLOs)
| 1. | understand basic models of the behaviour of firms and industrial organisation |
|---|---|
| 2. | manipulate the models to solve industrial organisation problems |
| 3. | apply the models to questions of strategy and policy. |
Contribution to the development of graduate attributes
This subject familarises students with the methods and models used by economists to analyse the behaviour of firms and industries. It examines analytically the relationship between firms’ decisions and the market in which they operate. The models are applied to a range of problems in both the private and public sectors.
Successful completion of this subject will contribute to students’ acquiring the following graduate attributes:
- Intellectual rigour and innovative problem solving
- Communication and collaboration
- Professional and technical competence
Teaching and learning strategies
The subject is presented in lecture and tutorial format. Essential principles are presented and analysed in lectures and students are lead through practical application exercises in tutorials. All students will be provided with the opportunity for initial feedback on their performance in the subject during the first six weeks of the semester, for example, online quizzes, tutorial exercises, draft assignments and other assessment methods. Further feedback will be provided in relation to submitted assessment tasks.
Content (topics)
- Market structures and market power
- Technology and cost
- Price discrimination and monopoly
- Product variety and quality
- Oligopoly and strategic interaction
- Mergers, cartels and collusion
- Price dispersion and search
- Auctions
Assessment
Assessment task 1: Reflections & Discussions (Individual)
| Objective(s): | This addresses subject learning objective(s): 1 and 2 |
|---|---|
| Weight: | 10% |
| Length: |
|
| Criteria: | The reflections & discussions are marked holistically, at the end of the semester, based on originality, insight, thoughtfulness, and effort. |
Assessment task 2: Applied Project (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 30% |
| Length: | The project is a 2-3 page essay. |
| Criteria: | Marks are based on the relevance of your chosen topic, on the originality, creativity and insightfulness of the analysis, and on the quality of the research and effort that is put into the project. |
Assessment task 3: Quizzes (Individual)*
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 60% |
| Length: | Each quiz is 50 minutes long. |
| Criteria: | Marks are based on the insightfulness and accuracy of responses. The quizzes will be marked on a “best 3 out of 4” basis, so your worst quiz will not count towards the overall assessment mark. *Note: Late submission of the assessment task will not be marked and awarded a mark of zero. |
Minimum requirements
Students must achieve at least 50% of the subject’s total marks.
Required texts
Industrial Organisation: A Strategic Approach, J. Church and R. Ware, McGraw Hill.
Available for free online: http://works.bepress.com/jeffrey_church/23/
Recommended texts
Modern Industrial Organization, D. Carlton and J. Perloff, Harper Collins.
Industrial Organization: Markets and Strategies, P. Belleflamme and M. Peitz, Cambridge University Press.
Introduction to Industrial Organization, L. Cabral, MIT Press.
All of the above are recommended as supplementary materials and are available at the UTS library.