Welcome to this third level, one semester, unit on The Economics of European Industry. The principal aims of the unit are.

  • To demonstrate how the powerful logic of economic reasoning can be applied to unravel the complex issues associated with competition and industrial policy in Europe.
  • To explore new methods of learning about this subject. For example, the public policy dimension of the area can be examined using the internet as a resource tool.

Unit Outline, Lecture Notes, slides and seminars

These are set out below. You might need a a plug-in to view some of the material. Three formats are available PDF, PowerPoint and Windows Media. Click on the appropriate graphic below if you need one of these plug-ins.

Week
Topics and Reading

Seminars and Web Activities

  Unit Outline (in PDF)
1

Lecture 1: Introduction to Industrial Economics (in PDF)

Key Reading:

Lypczynski J and Wilson J (2001) chapters. 1 and 4;

Martin S (2001) chapter 1

On-line Resources:

Cowling K, Yusof FM, and Vernon G (2000) Declining Concentration in UK Manufacturing? A problem of measurement, International Review of Applied Economics, Vol 14, No. 1. Available at The electronic Journals section of the library

Waterson M (2003) The role of Consumers in Competition and Competition Policy, Inernational Journal of Industrial Organsiation, 21, pp. 129 - 150. Available at The electronic Journals section of the library

Examine this document on The role of market definition in monopoly and dominance inquiries from the Office of Fair Trading.

Workshop 1: Introducing my web pages (in PDF)
2

Lecture 2: The Welfare costs of Market Power (slides: in PPT)

Key Reading:

Lypczynski J and Wilson J (2001) chapter 6

On-line Resources:

Read the original 'Social costs of monopoly' paper by Richard Posner available from http://ideas.repec.org. (However, it is 2.5mb in size)

Dobson S, Waterson M and Chu A (1998) The Welfare Consequences of the Exercise of Buyer Power, Office of Fair Trading, September, Research paper 16OFT 239

3/4

Lecture 3/4: Oligopoly (in PDF)

Also PowerPoint Slide Show

Key Reading:

Lypczynski J and Wilson J (2001) chapter 2

Martin S (2001) chapter 2

On-line Resources:

Download this best practice paper report from the OECD on Oligopoly

Seminar: To what extent should competition authorities be concerned about the welfare impact of market power?

Additional On-Line Readings for the seminar

Elzinga KG (1999) Industrial Organisation and Human Action Cato Journal, vol 19,no.2 (Fall)

5

Lecture 5: Collusion and Cartels (in PDF)

Key Reading:

Lypczynski J and Wilson J (2001) chapter 3;

Martin S (2001) chapter 3

On-line Resources:

Download the ruling from the Office of Fair Trading in respect of Hasbro Toys

Web Workshop: Collusive Activity in Europe

On-Line resources

European Competition Newsletter

6

Lecture 6: Vertical Restraints (in PowerPoint)

Key Reading:

Lypczynski J and Wilson J (2001) chapters 9 and 10;

On-line Resources:

Download the following paper by Dobson and Waterson from the OFT website.

Download the paper on 'Verticals' from Luc Peeperkom at the EC.

7

Lecture 7: Barriers to Entry

Key Reading:

Lypczynski J and Wilson J (2001) chapter 5;

Martin S (2001) chapter 4

On-line Resources:

 

Workshop: Car Price Differentials in the EU

On-line Resources:

To help you go to the DGIV on the Car sector

8

Lecture 8: Predatory Behaviour

Key Reading

:Martin S (2001) chapter 9 section 9.4

On-line Resources::

Download the initial ruling from the Office of Fair Trading in respect of Napp Pharmaceuticals This decision was later upheld by the Competition Commission on appeal.

You can also download this 1996 OECD paper on the abuse of a dominant position. The section on the EC has the case of Tetra Pak referred to in the lecture. Alternatively, why nt look at the OECD paper on Loyalty and Fidelity Discounts and Rebates published in 2003.

9

Lecture 9: UK and EC Competition Policy (in PDF)

Key Reading:

Lypczynski J and Wilson J (2001) chapter 11;

On-line Resources:

OFT (2002) Guidelines for Competition Assessment: A guide for policy makers completing Regulatory Impact Assessments.

Report Back on Car Price Differentials in the EC
10

Lecture 10: Mergers and European Merger Policy including Slide Show (PPT)

Key Reading:

Lypczynski J and Wilson J (2001) chapter 10

Martin S (2001) chapter 6 pps.128 to 136.

On-line Resources:

NERA (1999) Merger Appraisal in Oligopolistic Markets, OFT Research Paper no 19.

See the article by John Kay on recent problems for EC competition regulators

A riposte by Mario Monti on the rebuttal by the European Court of Justive on recent merger prohibitions.

11

Lecture 11: Privatisation and Regulation (in PPT)

Key Reading:

Lypczynski J and Wilson J (2001) chapter 12;

On-line Resources:

See the paper by Doyle C (1999) Liberalising Europe's Network Industries, Business strategy Review, Vol 9, 3, pp 55-66.

Available at The electronic Journals section of the library

Seminar: Critically examine whether the privatisation of Europe's Network Industries will improve economic welfare.

12

Lecture 12: Market Integration: the case of Pharmaceuticals

Key Reading:

Martin S (2001) chapter 10

On-line Resources:

Earl-Slater A (1996) Recent Developments in Regulating the Pharmaceutical Business in the EU, European Business Review, vol. 96, No. 1,pps. 17-25.

Weber K and Hallerberg M (2001) Explaining variation in Institutional integration in the European Union: why firms may prefer European solutions, Journal of European Public Policy, 8.2, April, pp. 171-191.

Both available electronically via http://www.unn.ac.uk/central/isd/gateway.htm

Additional Activity: Regulating European Pharmaceuticals

Buy On-Line

The set text for this course is Lypczynski J and Wilson J (2001) Industrial Organisation. An Analysis of Competitive Markets, Financial Times-Prentice Hall, London.

I am also recommending the following book for those with some mathematical ability.

Martin S (2001) Industrial Organisation. A European Perspective, Oxford University Press, Oxford

You can also purchase the set textbook on-line. Email the Well Read Bookshop or go to Amazon.co.uk. I will receive around 5% on every book sale which I will donate to the Parkinson's Disease Society.

You can order Lypczynski and Wilson by clicking here.

You can buy Martin on-line by clicking here.

Electronic Reading List and Journal Access

You can access the reading list for this course by clicking here. You also have access to electronic Journals such as The International Journal of Industrial Organisation, the Journal of Industrial Economics, and the Review of Industrial Organisation. Click here for access to all electronic Journals at the University of Northumbria.


  ©Kevin Hinde 2003