Course Catalogue

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

 

  1. 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) 

  1. Competition policy

 Measures, determinants, and consequences of horizontal concentration. Relationship between upstream and downstream firms including vertical integration, restraints and mergers.

                                                                    (10 lecture hours)

  1. 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