Students

ECON3009 – Industrial Organisation

2021 – Session 1, Special circumstances

Notice

As part of Phase 3 of our return to campus plan, most units will now run tutorials, seminars and other small group activities on campus, and most will keep an online version available to those students unable to return or those who choose to continue their studies online.

To check the availability of face-to-face and online activities for your unit, please go to timetable viewer. To check detailed information on unit assessments visit your unit's iLearn space or consult your unit convenor.

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit convenor, lecturer
Rohan Best
Lecturer
Edwin Franks
Credit points Credit points
10
Prerequisites Prerequisites
20cp at 2000 level including ECON203 or ECON2003
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit applies the tools of microeconomic theory to the study of firm behaviour in imperfectly competitive markets. The unit begins with a review of neoclassical theory of the firm. This is followed by a review of monopoly behaviour, with extension to models of horizontal and vertical product differentiation. Oligopoly models (including Cournot, Stackelberg and Bertrand) are reviewed and developed beyond those learned in foundation units. Models of anti-competitive behaviour are then introduced as they relate to predatory behaviour and collusion. Finally, non-price models of competition related to advertising, R&D, and patent races are examined. Beyond the theoretical topics studied in the unit, students will have the opportunity to apply their knowledge to a current industry study of the Australian Competition and Consumer Commission.

Important Academic Dates

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

Learning Outcomes

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

  • ULO1: Effectively communicate theories and knowledge of industrial organisation in technical and non-technical language.
  • ULO2: Analyse the relevance of industrial organisation to economic life.
  • ULO3: Evaluate economic theory and real-world applications relevant to efficiency and equity considerations, from a broad ethical perspective.

General Assessment Information

Class test

Students who do not sit the class test will be awarded a mark of zero, 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 School committee and suspected non-genuine cases will not be granted.

Research assignment

No extensions will be granted. There will be a deduction of 10% of the total available marks 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.

Final examination

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.

Assessment Tasks

Name Weighting Hurdle Due
Class test online 20% No Week 7
Research assignment 20% No Week 12
Final examination online 60% No University Exam Period

Class test online

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 10 hours
Due: Week 7
Weighting: 20%

 

The 60 minute open book test will include 20 multiple choice questions, covering material from weeks 1-6 (inclusive)

 


On successful completion you will be able to:
  • Effectively communicate theories and knowledge of industrial organisation in technical and non-technical language.
  • Analyse the relevance of industrial organisation to economic life.

Research assignment

Assessment Type 1: Report
Indicative Time on Task 2: 20 hours
Due: Week 12
Weighting: 20%

 

Detailed information about the Research Assignment will be provided on iLearn and during lectures.

 


On successful completion you will be able to:
  • Analyse the relevance of industrial organisation to economic life.
  • Evaluate economic theory and real-world applications relevant to efficiency and equity considerations, from a broad ethical perspective.

Final examination online

Assessment Type 1: Examination
Indicative Time on Task 2: 35 hours
Due: University Exam Period
Weighting: 60%

 

A two hour open book examination, consisting of multiple choice and short answer questions, will be held during the University Examination Period.

 


On successful completion you will be able to:
  • Effectively communicate theories and knowledge of industrial organisation in technical and non-technical language.
  • Evaluate economic theory and real-world applications relevant to efficiency and equity considerations, from a broad ethical perspective.

1 If you need help with your assignment, please contact:

  • the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
  • the Learning Skills Unit for academic skills support.

2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation

Delivery and Resources

Online lectures and workshop

This unit will be primarily taught using online ECHO recordings.  Each week there will be a main lecture recording, as well as accompanying short video recordings.  There will also be workshop questions related to each topic with accompanying video recordings. It is strongly recommended that students watch all of these recordings.

Prescribed textbook

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

The printed textbook and E-Text can be purchased from Wiley: https://www.wiley.com/en-au/Industrial Organization: Contemporary Theory and Empirical Applications, 5th Edition-p-9781118545508. The printed textbook can also be purchased via various online retailers (Zookal, Booktopia, Amazon etc.)

You must have access to this resource prior to the start of the semester (and in my experience students without access to this content are far less likely to pass).

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

Topic

Textbook chapters

Introduction to IO; Microeconomics review

1, 2

Market structure and power; Technology and cost

3, 4

Price discrimination

5, 6

Product variety and quality

7

Bundling and tie-in sales

8

Cournot competition; Price competition

9, 10

Price competition (cont.); Dynamic games

10, 11

Entry deterrence and predation; Predatory conduct

12, 13

Price fixing, repeated games and antitrust

14

Advertising, market power and information; Research and development

19, 20

Research and development (cont.); Patents and patent policy

20, 21

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:

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/admin/other-resources/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 help you improve your marks and take control of your study.

The Library provides online and face to face support to help you find and use relevant information resources. 

Student Enquiry Service

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

Equity 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.

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.