The aim of the first part of the course is to provide students with a theoretical understanding of how firms operate strategically in imperfect markets. This module builds on the first year micro-economics course, to study topics relating to business structure, conduct and performance with applications to the UK economy. It aims to develop a basis for understanding real competition among businesses, and also to analyse government industrial policy.
The second part of the course includes topics such as models of production; clusters and competitiveness; the economics of innovation; and issues on innovation policy and firm based innovation processes.
Learning Outcomes
By the end of the module students should be able to:
define and explain theories of firms and industries including competition, monopoly, oligopoly and collusive behaviour (bringing in elementary game theory and also advertising theory)
select analytical arguments more generally to explain these theories
develop a critical understanding the economic environment of firms’ decision making in terms of modes of production and innovation
explain and assess the role of Government in issues related to competitiveness and innovation.