Professor M Schankerman, LRB. R516

Optional for BSc Business Mathematics and Statistics, BSc Econometrics and Mathematical Economics, BSc Economics, BSc Economics and Economic History, BSc Economics with Economic History, BSc Environmental Policy with Economics, BSc Mathematics and Economics, BSc Geography with Economics, BSc Government and Economics, BSc Management, BSc Philosophy and Economics, BSc Social Policy and Economics and the Diploma in Accounting and Finance.

Students should have completed Microeconomic Principles I or II (or equivalent).

The aim of the course is to understand the structure, conduct, and performance of firms by studying analytical models of imperfect competition, determinants of industrial structure, entry in strategic settings, government regulation of natural monopolies, and markets with asymmetric information. The main subjects include monopoly, price discrimination, vertical and horizontal restraints, transactions costs and contract design, game theoretic models of firm behaviour, collusive arrangements, product differentiation, and strategic entry deterrence. Economic models will be used to address policy issues and will be illustrated in classes with case studies.

Lectures EC313: 30 hours MT and LT.

Classes EC313.A: 15 MT and LT.

At least four problem sets will be required and assessed by class teachers.

A detailed reading list will be provided at the beginning of the course. As a primary text, students should choose between Church and Ware's Industrial Organization: a strategic approach and Tirole's The Theory of Industrial Organisation. Supplementary reading will be assigned.

A three-hour written examination in the ST.