To provide background in modern microeconomics and show how monopolistic and oligopolistic markets operate and prices are determined to provide a comprehensive and in-depth analysis of the role of prices on firms production decisions, output supply and input demand to provide an introductory course on Game Theory to provide a brief overview on the experimental economics methodology to provide links to more advanced literature.
Knowledge of the basics of undergraduate microeconomic theory is required. Working knowledge of elementary calculus is essential.
The component of Price Analysis will help students: Analyse how economic agents (consumers, firms) take economic decisions. Be able to use skills developed in this unit to investigate and solve problems that consumers and firms face. Apply tools learned in this unit as well as in other economic units and in mathematics to analyse real-world markets. Think analytically and rigorously about real economic phenomena. Develop the ability to understand and critically analyze journal articles.
Monopoly-perfect competition SUBJECT 1 Market structure and Pricing strategies: Monopoly vs. Perfect Competition SUBJECT 2 Monopoly Pricing: Price discrimination & Bundling SUBJECT 3 Market Concentration, Market Power and Pricing Oligopoly SUBJECT 4 Introduction to Game Theory: Static Games & Sequential Games SUBJECT 5 Pricing Strategies of Incumbent Firms Structural & Strategic Entry Barriers SUBJECT 6 Oligopoly Competition & Pricing Special Topics in Pricing SUBJECT 7 Dominant firms, Price Fixing: Collusion-Cartels SUBJECT 8 Corporate Social Responsibility, quality differentiation and prices SUBJECT 9 Recap, Coursework Preparation
Day 1: Subjects 1&2 Day 2: Subjects 3&4 Day 3: Subjects 5&6 Day 4: Subjects 7&8 Day 5: Subject 9
The coursework is as follows: Class attendance and participation, Project assignment and Final Report: 30%. Written Exam: 70%. The project assignment/ coursework is based on an individual essay (submitted until the exam date) will determine 30% of the final grade. Essay title: Identify a real firm and assess their pricing strategy with respect to the structure of the market they operate. The assessment will be based on the following criteria: 1. Originality of the story – content 25%, 2. Correct connection of theory to real world 25%, 3. Correct use of relevant theory 25% 4. Correct use of sources, bibliography-originality of sources 25% The essay should be a maximum 2000 words (no titles diagrams included), written in Calibri Size of letters 11