कोर्स जानकारी

INDUSTRIAL ECONOMICS

Learning Objectives

The course aims to:

• To understand basics of industrial economics and its scope

• To understand concept and theories of market structure.

• To analyse issues related to market conduct like Entry and Exit Barriers, Pricing Behavior, Research and Innovation, Mergers and Acquisitions and Legal Tactics.

• To explore the role of public policy in Indian industries

Learning outcomes

By studying this course, students will be able to:

· Enable the student to understand how the Industries Function in the real world

· Understand what is market concentration and how does it affect market power

· Know how different strategies are used, under the structure-conduct-performance paradigm, by the firms to maximize their market power.

· Know the importance of regulatory public policy in oligopolistic market, in order to ensure maximum consumer welfare.

SYLLABUS OF DSC-9

UNIT – I: Structure- Conduct- Performance Paradigm (12 weeks)

Basic understanding of Industrial Economics, Scope of Industrial Economics, Structure- Conduct- Performance Model, Different School of Thoughts, Theory of Firm and basic conditions of Demand and Cost.

Unit 2: Market Structure and Concentration (12hours)

What is Market Concentration, Theories of Measurement of Concentration, Deterministic and Stochastic Approach, Lerner and Herfindahl Index, Product Differentiation, Horizontal, Vertical and Conglomerate Mergers, Vertical Integration.

Unit 3: Market Conduct (12hours)

Entry and Exit Barriers, Pricing Behavior, Advertising, Product Strategy, Research and Innovation, Mergers and Acquisitions, Legal Tactics.

DISCIPLINE SPECIFIC CORE COURSE – 15 (DSC-15): INDUSTRIAL ECONOMICS

27

Unit 4: Public Policy and Indian Industries (9hours)

Role and Importance of Industry Regulation, Regulation of Natural Monopoly, Antitrust Legislations and Indian Industries, Social Concerns and Advertising.

Essential/recommended readings

1. Cabral Luis M.B. (2017). Introduction to Industrial Organization. 2ndEdn. Cambridge, MA: MIT Press

2. Carlton, D.W. and J. M. Perloff. (2005). Modern Industrial Organization. Pearson

3. Shy, Oz. (1996). Industrial Organization: Theory and Applications. The MIT Press.

4. Waldman D.E. and E. J. Jensen. (2019). Industrial Organization: Theory and Practice.

Suggestive readings

1. Tremblay, Victor J., and Carol Horton Tremblay. (2012), "New Perspectives on Industrial Organization", New York: Springer.

Note: Examination scheme and mode shall be as prescribed by the Examination Branch, University of Delhi, from time to time.