Level of Study
Objectives and Content
The purpose of the course is to give students a general introduction to the theory of industrial organisation and to competition policy.
The course deals with basic monopoly theory and theory of competition in markets with few firms (oligopoly theory). Students also receive an introduction to game theory to be able to analyse static and dynamic games. Selected parts of modern competition policy are reviewed.
A key theme in the course is market power and how it affects society and consumers. What happens to welfare when a monopolist charges different prices to different customers or markets (price discrimination), and what incentive does the monopolist have to offer products of good quality? In the course we also analyse, through various models for imperfect competition, how the order of moves and type of competition affect market outcomes.
Finally, we review selected competition policy topics such as mergers, vertical agreements and collusion, and their effect on the society and customers. We then use the learned theoretical concepts to analyse real-life competition policy cases.
A student who has completed the course should have the following learning outcomes:
- Understand the concept of market power and what harmful effects this has for society and consumers, as well as what incentives companies with market power have.
- Has basic knowledge of competition policy and competition policy instruments.
- Can use basic game theory to study strategic situations.
- Can use basic oligopoly theory to analyze strategic interaction in markets with imperfect competition.
- Can discuss how mergers, cartels and vertical agreements affect economic efficiency and welfare.
- Can apply the theoretical concepts learned in the course to analyse real-life competition authority case studies.
- Can analyse real-life situations using theoretical concepts learned in economics and formulate the arguments in a written format
- Can participate constructively in discussions on their own and others' work
Required Previous Knowledge
Credit Reduction due to Course Overlap
Full overlap with ECON160
Access to the Course
Teaching and learning methods
18 lectures and seminars
Compulsory Assignments and Attendance
A written individual assignment
Forms of Assessment
Portfolio assessment with overall grade assessment.
- Group assignment (40%) (no assessment of individual contribution)
- Individual 2-hour school exam (60%)
Examination Support Material
Calculator: Only the following simple, non-programmable calculators without a graphical display may be used in written tests:
All models of the types:
- Casio FX-82, Casio FX-82ES PLUS or Casio FX-82EX
- Hewlett-Packard HP30
- Texas instruments TI-30
Assessment in teaching semester.
The reading list will be ready before 1 June for the autumn semester and 1 December for the spring semester.
All courses are evaluated according to UiB's system for quality assurance of education.
The Programme Commitee is responsible for the content, structure and quality of the study programme and courses.
Course coordinator and administrative contact person can be found on Mitt UiB.
The Department of Economics at the Faculty of Social Sciences has det administrative responsibility for the course and the study programme.
For written exams, please note that the start time may change from 09:00 to 15:00 or vice versa until 14 days prior to the exam.
Type of assessment: Portfolio
- Withdrawal deadline
Exam part: Group assignment
Exam part: Written exam
- 29.11.2022, 15:00
- 2 hours
- Examination system
- Digital exam