Undergraduate Course: Economic Aspects of Competition Policy (BUST10124)

Course Outline
School	Business School	College	College of Humanities and Social Science
Credit level (Normal year taken)	SCQF Level 10 (Year 3 Undergraduate)	Availability	Available to all students
SCQF Credits	20	ECTS Credits	10
Summary	This course aims at familiarizing the student with the economic theory that supports competition policy. The course considers the social welfare implications of different market structures, as they affect the behaviour and strategies of firms in terms of price, output, or R&D. Special attention is paid to the theory of oligopoly and how it fits within the overall structure-conduct-performance (SCP) paradigm. The lessons obtained from the theory will be applied to the analysis of mergers, price-fixing, or abuse of dominant position, among other topics. Real-life case studies will be discussed in class, and they appear in all forms of assessment. The course is delivered in ten sessions that cover the following topics: Introduction to the SCP paradigm;Theory of Oligopoly; Introduction to game theory; Oligopolistic coordination; Strategic entry deterrence; Introduction to Competition Policy; Market Structure and concentration; Mergers and Acquisitions; Merger Policy; Market Structure, R&D, and Intellectual Property.
Course description	The course is delivered in ten sessions that cover the following topics: 1. Introduction to the SCP paradigm 2. Theory of Oligopoly 3. Introduction to game theory 4. Oligopolistic coordination 5. Strategic entry deterrence 6. Introduction to Competition Policy 7. Market Structure and concentration 8. Mergers and Acquisitions 9. Merger Policy 10. Market Structure, R&D, and Intellectual Property

Entry Requirements (not applicable to Visiting Students)
Pre-requisites	Students MUST have passed: Business Economics (BUST08005) OR Economics 2 (ECNM08006)	Co-requisites
Prohibited Combinations	Students MUST NOT also be taking Market Structure, Conduct and Performance (BUST10008)	Other requirements	None

Information for Visiting Students
Pre-requisites	A pass in Business Economics (BUST08005) OR Economics 2 (ECNM08006) equivalents.

Course Delivery Information

Academic year 2014/15, Available to all students (SV1)		Quota: None
Course Start	Semester 1
Timetable	Timetable
Learning and Teaching activities (Further Info)	Total Hours: 200 ( Lecture Hours 20, Formative Assessment Hours 2, Revision Session Hours 2, Programme Level Learning and Teaching Hours 4, Directed Learning and Independent Learning Hours 172 )
Assessment (Further Info)	Written Exam 70 %, Coursework 30 %, Practical Exam 0 %
Additional Information (Assessment)	1. One individual essay of 2000 words (focusing on a price-fixing case)(30%). 2. Open Note Final exam: two case studies; one focusing on conduct (e.g. abuse of dominant position) and the second focusing on structure (e.g. a merger or joint venture) (70%).
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Exam Information
Exam Diet	Paper Name		Hours & Minutes
Main Exam Diet S2 (April/May)			2:00

Academic year 2014/15, Part-year visiting students only (VV1)		Quota: None
Course Start	Semester 1
Timetable	Timetable
Learning and Teaching activities (Further Info)	Total Hours: 200 ( Lecture Hours 20, Programme Level Learning and Teaching Hours 4, Directed Learning and Independent Learning Hours 176 )
Additional Information (Learning and Teaching)	Visiting student assessment: coursework essay (50%) and exam-replacement essay (50%)
Assessment (Further Info)	Written Exam 0 %, Coursework 100 %, Practical Exam 0 %
Additional Information (Assessment)	1. One individual essay of 2000 words (focusing on a price-fixing case)(30%). 2. Open Note Final exam: two case studies; one focusing on conduct (e.g. abuse of dominant position) and the second focusing on structure (e.g. a merger or joint venture) (70%).
Feedback	Not entered
No Exam Information

Learning Outcomes
On completion of the course students should: a) be able to understand - what determines inter-industry differences in the structure of markets; - how firms interact with each other in their price, output and R & D decisions; - how firms may act strategically to retain profits by deterring entry; - how the structure of industries affects the pricing, output, R&D and other policies of firms; - how the structure of industries affects their economic performance and vice versa; - why and how existing regulations protect competition; - what motivates firms to merge or collude; - what motivates a government to intervene; - how both parties will present their arguments; b) be able to apply these concepts to the analysis of real life case studies

Reading List
S Martin Industrial Organization in Context, Oxford University Press, 2010. J Lipczynski, J Wilson & J Goddard, Industrial Organization, Prentice Hall, 2005; 3rd edition 2009.

Additional Information
Course URL	EACP
Graduate Attributes and Skills	Not entered
Keywords	EACP

Contacts
Course organiser	Dr Augusto Voltes-Dorta Tel: (0131 6)51 5546 Email: Augusto.Voltes-Dorta@ed.ac.uk	Course secretary	Ms Patricia Ward-Scaltsas Tel: (0131 6)50 3823 Email: Patricia.Ward-Scaltsas@ed.ac.uk