Students

ECON309 – Industrial Organisation

2019 – S2 Evening

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Jordi McKenzie
Credit points Credit points
3
Prerequisites Prerequisites
6cp at 200 level including ECON203
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
In standard economic theory, markets exist to allocate and distribute a nation's wealth through the process of exchange. The way in which a society organises these markets and the purposes to which the resulting structures are put, cannot be understood without in turn comprehending the way in which industries are organised within that economy, specifically the contractual arrangements that facilitate economic exchange. This unit analyses markets, firms and government as simply three different institutional or governance structures that serve to accomplish given economic objectives. The issue then becomes not which one should be utilised, but which is the most efficient mix. The actual mix chosen depends upon the comparative transaction costs of using each one.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • Knowledge: Demonstrate understanding concerning the relevance of modern industrial organisation in the contemporary world and the fundamental theoretical models of microeconomics needed to develop a deeper understanding of the subject matter.
  • Communication: Demonstrate the ability to effectively communicate advanced theories and knowledge of industrial organisation in both technical and non-technical language.
  • Ethical thinking: Demonstrate the ability to apply economic theory and ethical thinking as these relate to contemporary industrial organisational issues faced by society.

Assessment Tasks

Name Weighting Hurdle Due
Class Test 20% No Week 7
Research Assignment 20% No Week 12
Final Examination 60% No University Examination Period

Class Test

Due: Week 7
Weighting: 20%

The class test will be held in (teaching) Week 7. The test will include 10 multiple choice questions and two short answer questions.  It will be of 60 minutes duration (plus 5 minutes reading time). The test will cover material from Week 1-5 (inclusive). Further details will be provided in due course.

Students who do not sit the class test will be awarded a mark of 0, except for cases in which an application for 'Special Consideration' has been made and approved. Students should note that applications for 'Special Consideration' are reviewed by a Faculty committee and suspected non-genuine cases will not be granted. 

 


On successful completion you will be able to:
  • Knowledge: Demonstrate understanding concerning the relevance of modern industrial organisation in the contemporary world and the fundamental theoretical models of microeconomics needed to develop a deeper understanding of the subject matter.
  • Ethical thinking: Demonstrate the ability to apply economic theory and ethical thinking as these relate to contemporary industrial organisational issues faced by society.

Research Assignment

Due: Week 12
Weighting: 20%

The Research Assignment will be 1500 words and primarily assesses the Learning Outcomes relating to 'Ethical Thinking' and 'Communication'.  It is due on Friday November 1 (week 12) at 2pm and must be submitted online through iLearn. More information about the Research Assignment will be provided during lectures and on iLearn by the end of week 4. 

Late submission: No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission incurs a 20% penalty). Late submissions will be accepted up to 96 hours after the due date and time. This penalty does not apply for cases in which an application for Special Consideration is made and approved. Note: applications for Special Consideration must be made within 5 (five) business days of the due date and time. When an application for special consideration has been approved, Policy allows for the provision of one additional task.  The format, time and date of this task will be determined by the Unit Convenor.  

 


On successful completion you will be able to:
  • Knowledge: Demonstrate understanding concerning the relevance of modern industrial organisation in the contemporary world and the fundamental theoretical models of microeconomics needed to develop a deeper understanding of the subject matter.
  • Communication: Demonstrate the ability to effectively communicate advanced theories and knowledge of industrial organisation in both technical and non-technical language.
  • Ethical thinking: Demonstrate the ability to apply economic theory and ethical thinking as these relate to contemporary industrial organisational issues faced by society.

Final Examination

Due: University Examination Period
Weighting: 60%

The final examination is of 2 hours duration and will be held in the official Macquarie University examination period. All material covered in the unit is examinable. Further details of the structure of the final examination will be provided in due course. 

If an application for Special Consideration is approved, Policy allows for the provision of one additional task. Note: applications for Special Consideration must be made within 5 (five) business days of the due date and time. 


On successful completion you will be able to:
  • Knowledge: Demonstrate understanding concerning the relevance of modern industrial organisation in the contemporary world and the fundamental theoretical models of microeconomics needed to develop a deeper understanding of the subject matter.
  • Communication: Demonstrate the ability to effectively communicate advanced theories and knowledge of industrial organisation in both technical and non-technical language.
  • Ethical thinking: Demonstrate the ability to apply economic theory and ethical thinking as these relate to contemporary industrial organisational issues faced by society.

Delivery and Resources

The teaching format for this class is one 3-hour session per week. This session will typically include a formal lecture component and discussion of practice exercises. It is strongly recommended that students attend all lectures and gain access to the prescribed textbook.

Prescribed textbook:

  • Pepall, L., D Richards and G. Norman, 2014, Industrial Organization: Contemporary Theory and Empirical Applications, 5th Edition, Wiley.

Other textbooks which may also be useful include:

  • Cabral, L. 2017, Introduction to Industrial Organization, 2nd Edition, MIT Press: Cambridge
  • Church, J. and R. Ware, 2000, Industrial Organization: A strategic approach, McGraw-Hill, Boston (This text is available online free of charge at:http://homepages.ucalgary.ca/~jrchurch/page4/page4.html).
  • Shy, O., 1995, Industrial Organization, MIT Press, Cambridge, 1995.
  • Waldman, D.E., and Jensen, E., 2013, Industrial Organization Theory and Practice, Fourth Edition.

For a more advanced treatment of the material covered in this course you may want to consider the following textbooks:

  • Belleflamme, P. and M. Peitz, 2010, Industrial Organization: Markets and Strategies, Cambridge University Press, New York.
  • Tirole, J. 1988, The Theory of Industrial Organization, MIT Press, Cambridge

Unit Schedule

Week  Topic Reading*
1 Introduction to IO; Microeconomics review PRN 1, 2
2 Market structure and power; Technology and cost PRN 3, 4
3 Price discrimination PRN 5, 6
4 Product variety and quality PRN 7
5 Bundling and tie-in sales PRN 8
6 Cournot competition; Price competition PRN 9, 10
7 Class test. No lecture or workshop.  
8 Price competition (cont.); Dynamic games PRN 10, 11
9 Entry deterrence and predation; Predatory conduct PRN 12, 13
10 Price fixing, repeated games and antitrust PRN 14
11 Advertising, market power and information; Research and development PRN 19
12 Research and development (cont.); Patents and patent policy PRN 20
13 Review  

* All readings taken from Pepall, Richards, and Norman (PRN), Industrial Organization 5E.

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:

Undergraduate students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.

If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central).

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/study/getting-started/student-conduct​

Results

Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

Learning Skills

Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.

Student Services and Support

Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.

Student Enquiries

For all student enquiries, visit Student Connect at ask.mq.edu.au

If you are a Global MBA student contact globalmba.support@mq.edu.au

IT Help

For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/

When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.

Graduate Capabilities

Discipline Specific Knowledge and Skills

Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.

This graduate capability is supported by:

Learning outcomes

  • Knowledge: Demonstrate understanding concerning the relevance of modern industrial organisation in the contemporary world and the fundamental theoretical models of microeconomics needed to develop a deeper understanding of the subject matter.
  • Communication: Demonstrate the ability to effectively communicate advanced theories and knowledge of industrial organisation in both technical and non-technical language.
  • Ethical thinking: Demonstrate the ability to apply economic theory and ethical thinking as these relate to contemporary industrial organisational issues faced by society.

Assessment tasks

  • Class Test
  • Research Assignment
  • Final Examination

Critical, Analytical and Integrative Thinking

We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.

This graduate capability is supported by:

Learning outcomes

  • Knowledge: Demonstrate understanding concerning the relevance of modern industrial organisation in the contemporary world and the fundamental theoretical models of microeconomics needed to develop a deeper understanding of the subject matter.
  • Communication: Demonstrate the ability to effectively communicate advanced theories and knowledge of industrial organisation in both technical and non-technical language.
  • Ethical thinking: Demonstrate the ability to apply economic theory and ethical thinking as these relate to contemporary industrial organisational issues faced by society.

Assessment tasks

  • Class Test
  • Research Assignment
  • Final Examination

Effective Communication

We want to develop in our students the ability to communicate and convey their views in forms effective with different audiences. We want our graduates to take with them the capability to read, listen, question, gather and evaluate information resources in a variety of formats, assess, write clearly, speak effectively, and to use visual communication and communication technologies as appropriate.

This graduate capability is supported by:

Learning outcome

  • Communication: Demonstrate the ability to effectively communicate advanced theories and knowledge of industrial organisation in both technical and non-technical language.

Assessment tasks

  • Research Assignment
  • Final Examination

Engaged and Ethical Local and Global citizens

As local citizens our graduates will be aware of indigenous perspectives and of the nation's historical context. They will be engaged with the challenges of contemporary society and with knowledge and ideas. We want our graduates to have respect for diversity, to be open-minded, sensitive to others and inclusive, and to be open to other cultures and perspectives: they should have a level of cultural literacy. Our graduates should be aware of disadvantage and social justice, and be willing to participate to help create a wiser and better society.

This graduate capability is supported by:

Learning outcomes

  • Knowledge: Demonstrate understanding concerning the relevance of modern industrial organisation in the contemporary world and the fundamental theoretical models of microeconomics needed to develop a deeper understanding of the subject matter.
  • Communication: Demonstrate the ability to effectively communicate advanced theories and knowledge of industrial organisation in both technical and non-technical language.
  • Ethical thinking: Demonstrate the ability to apply economic theory and ethical thinking as these relate to contemporary industrial organisational issues faced by society.

Assessment tasks

  • Class Test
  • Research Assignment
  • Final Examination

ECON309 Unit Website

Course material is available on the learning management system (ilearn). The web page for this unit can be found at https://ilearn.mq.edu.au/login/MQ/

Students should check this site regularly for announcements, test results and lecture material.

Research and Practice

  • This unit gives you practice in applying research findings in your assignments
  • This unit gives you opportunities to conduct your own research