Module: Industrial Economics
BA Economics +, BA (Hon) Economics
Module code: Eco-362
Credit
Points: 12
Module
coordinator: Dr. Vipin Negi
Module
offered: 8th Semester
Module
Objectives: This module aims to-
- provide
profound understanding of the industrial decision making process
- Develop an
understanding of the various issues related to policy making in the realm
of industrial sector.
Learning
Outcomes: At the completion of the module students
should be able to:
- Acquire
appreciation of the theories forming building blocks of industrial
development.
- Apply the
theoretical knowledge in real world issues.
Learning
Methods
Lectures (60
Hours)
Tutorials (15
hours)
ICT /Videos (5
Hours)
Seminars (10
hours)
Assignments and
case studies (30 hours)
Assessment
Learning
outcomes would be assessed through:
Semester end
examination (50%)
Assignments,
projects (20%)
Library Research
Report (30%)
Content
- The market and
strategic behaviour
Competition,
Monopoly and oligopoly. Best response functions, Collusions and tacit
collusions. Product differentiation, studies of structure and profitability,
information problem and search behaviour, price discrimination and bundling,
vertical relationships, Market dynamics, market power and efficiency school of
thought, concentration and entry, innovation and technical change, entry
barrier strategy of the leading efficient firms. Shareholders and corporate
governance of firms, ownership and control of industry
(25
lecture hours)
- Competition
policy
Measures,
determinants, and consequences of horizontal concentration. Relationship
between upstream and downstream firms including vertical integration,
restraints and mergers.
(10 lecture hours)
- Regulation
policy
Rationale for
regulation of natural monopolies. Modes of regulation of competitive
industries. Government ownership, privatization, and deregulation. Optimum
multi-product and nonlinear pricing. Price cap, rate of return regulation.
Essential facilities and access pricing. Asymmetrical information and
regulation. Mixed enterprise. Monopoly
franchising. (25 lecture
hours)
Suggested
Readings
1)
Carlton DW, Perloff JM (2005); Modern
Industrial organization, (4th edn), Welsey Longman.
2)
Church J, Ware R (2000); Industrial
organization : A strategic Approach ,McGraw Hill.
3)
Spullber DF (1989); Regulation and Markets,
Cambridge MIT Press.
4)
Helm D, Jenkinson T ; Competition in
regulated industries ,OEP
5)
Shy,O (1996); Industrial Economics : Theory
and Applications, MIT press.
Date of last update: October 26, 2006