Students

ECON3009 – Industrial Organisation

2022 – Session 2, In person-scheduled-weekday, North Ryde

General Information

Download as PDF
Unit convenor and teaching staff Unit convenor and teaching staff
Rohan Best
rohan.best@mq.edu.au
Pundarik Mukhopadhaya
pundarik.mukhopadhaya@mq.edu.au
Pundarik Mukhopadhaya
pundarik.mukhopadhaya@mq.edu.au
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://www.mq.edu.au/study/calendar-of-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 real-world applications of economic theory relevant to efficiency and equity considerations, from a broad ethical perspective.

General Assessment Information

Late Assessment Submission Penalty (written assessments) 

Unless a Special Consideration request has been submitted and approved, a 5% penalty (of the total possible mark) will be applied each day a written assessment is not submitted, up until the 7th day (including weekends). After the 7th day, a grade of ‘0’ will be awarded even if the assessment is submitted. Submission time for all written assessments is set at 11.55pm. A 1-hour grace period is provided to students who experience a technical concern.  

For any late submissions of time-sensitive tasks, such as scheduled tests/exams, performance assessments/presentations, and/or scheduled practical assessments/labs, students need to submit an application for Special Consideration.

Assessment Tasks

Name Weighting Hurdle Due
Class test online 20% No 05/09/2022
Research assignment 20% No Week 10
Final examination online 60% No University Examination Period

Class test online

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 10 hours
Due: 05/09/2022
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 10
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 real-world applications of economic theory 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 Examination 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 real-world applications of economic theory 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 Writing Centre 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

Lectures and workshop

This unit will include on-campus lectures and ECHO recordings. It is strongly recommended that students watch recordings and attend on-campus lectures.

Prescribed textbook:

Pepall, L., D Richards and G. Norman, 2014, Industrial Organization: Contemporary Theory and Empirical Applications, 5th Edition, Wiley. Some sites for the textbook:

https://www.booktopia.com.au/industrial-organization-lynne-pepall/book/9781118250303.html

https://www.wiley.com/en-au/Industrial+Organization%3A+Contemporary+Theory+and+Empirical+Applications%2C+5th+Edition-p-9781118545508  

Access to this resource from the start of the semester is very strongly recommended.

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://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:

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

To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.

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

Academic Integrity

At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.

Student Support

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

The Writing Centre

The Writing Centre provides resources to develop your English language proficiency, academic writing, and communication skills.

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

Student Services and Support

Macquarie University offers a range of Student Support Services including:

Student Enquiries

Got a question? Ask us via AskMQ, or contact Service Connect.

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.

Unit information based on version 2022.03 of the Handbook