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Welcome to a unit that I hope you will enjoy. This is a unit for Business Studies students at Northumbria University. It represents a development of a previous unit, EC407 Managerial and Industrial Economics which was cited in the Scout Economics and Business Report and listed in the Economics Centre of the Learning, Teaching and Support Network and the World Lecture Hall.

The unit explores the effects of competitive and anti-competitive behaviour across the globe. It uses theory and examples to examine the role of competition authorities in maintaining consumer confidence as well as controlling anti-competitive agreements and the abuse of dominant positions.

You can get an overall feel for the course by downloading the Unit Outline and looking at the web links for this unit..

The Programme
Lectures
Seminar/Web Activites
1

Introduction to Competition and Regulation

You will also benefit from listening to the following streaming audio slide shows:

Introduction to Regulation: it's signicance and rationale. (35 minutes)

Directed Reading:

Chapter 1 of Study Booklet (see Below)

Baldwin and Cave Chapters 1 and 10

Cusack JL and Hahn R W (2003) The costs and benefits of regulation. Implications for developing nattions, OECD, Paris

OECD (2001) OECD Report on Regulatory Reform. A summary, OECD, Paris

OECD (2003) Proceedings of Regulatory Issues and the Doha development Agenda. Issues Paper, OECD, Paris

Web Activity: Introducing Competition

Introductory Multiple Choice Exercise from Roger McCain's website.

An interesting link is provided by the World Bank's 'Doing Business' website. Click here to compare how differences in regulations between countries may affect investment

2

Case Study on Regulation: Protecting Consumers

Directed Reading:

Chapter 2 of Study Booklet

Doyle C (1997) Self Regulation and Statutory Regulation, Business Strategy Review, Vol 8, Issue 3, Sept, pps. 35-42.

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

Vickers J (2003) Economics for Consumer Policy, British Academy Keynes Lecture, OFT Speech, 29th October 2003 (You don’t need to know the model in the appendix).

Seminar: Introduction to Game Theory

Discussion of Dominant Strategies; Nash Equilibrium and The Prisoner's Dilemma Game.

Directed Reading:

Appendix 1A in the Study Booklet

You will benefit from listening to the streaming audio slide show on the Prisoner's Dilemma Game (A 22 minute presentation that requires Windows Media Player)

3

Understanding Markets and Industries

Directed Reading:

Appendix 1 in Study Booklet. In particular examine the OFT and EC documents.

Martin (1993) Chapter 1

Case Study on Regulation: Regulating the European Pharmaceutical Industry

Directed Reading:

Study Booklet chapter 5

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

4

The Welfare Effects of Market Structure (Part 1) Also available as a PowerPoint Animation

You will also benefit from listening to the following streaming audio slide shows:

Monopoly Profit (20 minutes).

Directed Reading:

Study Booklet Chapter 8.

S. Martin Chapter 2

eLearning Zone

Answer the multiple choice style questions on 'Information Problems and Regulation' and 'Introduction to Industrial Economics'.

5

Oligopoly Also available as a PowerPoint Animation

You will also benefit from listening to the following streaming audio slide shows:

Cournot Oligopoly Equilibrium (13 minutes)

Cournot and Welfare a diagrammatic explanation (13 minutes)

Directed Reading:

Study Booklet Chapter 8.

S. Martin Chapters 2 and 5

Seminar: The UK National Lottery.

Directed Reading:

Study Booklet Chapter 5

Hinde K (1997) Competition and the Regulation of the National Lottery, Review of Policy Issues, Vol 3, 1, pps 17-28.

For those interested I have also constructed a Web Activity on Regulating Lotteries

6

Barriers to Entry (Part 1) Also available as a PowerPoint Animation

S. Martin Chapter 4

eLearning Zone

Answer the multiple choice style questions on The welfare effects of Monopoly.

7

Barriers to Entry (Part 2) Also available as a PowerPoint Animation Includes analysis of the Chain Store Paradox

S. Martin Chapter 16

eLearning Zone

Answer the multiple choice questions on Game theory and Oligopoly

8

Cartels Also available as a PowerPoint Animation

S. Martin Chapter 6

OECD (2003) Report on the nature and imoact of hard core cartels, OECD, Paris

Seminar: Cartel Enforcement

Directed Reading

Study Booklet Chapter 7.

Joshua J (1999), Cartel Enforcement, Competition Policy Newsletter, no. 1. October, pp. 27 - 30Available at http://europa.eu.int/comm/competition/publications/cpn/

9

Predatory Behaviour Available as a PowerPoint Animation

S. Martin Chapter 16

Seminar: UK Competition Case Studies: Napp Pharmaceuticals and Aberdeen JournalsAvailable from http://www.oft.gov.uk
10

Assessment 1: Multiple Choice Test. 30 questions to be answered in one hour (weight = 50 % of overall assessment for this unit). Download an example here. And the Answers

Revision

11

Privatisation and Regulation of Public Utilities Also available as a PowerPoint Animation

Directed Reading:

Study Booklet Chapters 6 and 7

Baldwin and Cave Chapters 15 - 19

Interesting Link: World Bank's Privatisation Toolkit

Seminar: Privatisation and Regulation in Europe.

Directed Reading:

Study Booklet Chapters 6 and 7

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

12

Merger Policy

Directed Reading:

Study Booklet Chapter 9

European Commission website

Revision. Materials to be placed here nearer the time.
13/15

Assessment 2: 90 minute test. 2 Essays from a choice of 5. Weighting = 50%. Download an example here

Textbook?

I've put together a Study Booklet for this unit. It is not a substitute for wide reading, however, and you should follow the key reading associated with each weeks lecture and activity. The Study Guide is a collection of notes that I've been using for some time. It is being constantly revised so any comments would be gratefully received.

I've divided the Study Booklet into 4 to help minimise on download problems. Right mouse click on each part and select 'save as'. They are in pdf. You can also download the whole thing in pdf or as zip file.

Download the Study Booklet:

In its entirety (3mb) or as a winzip file (1.7mb)

In parts: Part 1(684kb); Part 2 (582kb); Part 3 (1mb); Appendices (742kb)

If you would prefer to buy a textbook I suggest

Martin S (1994) Industrial Economics. Economic Analysis and Public Policy, second edition, Macmillan, London. Buy On-Line by clicking here. It is a little dated and you will require some mathematical ability to work with this book but it is an excellent read. Martin has written a more updated textbook [(2001) Industrial Organisation. A European Perspective, Oxford University Press, Oxford] but this similarly excellent little book uses a modelling approach that we do not need.

and

Baldwin R and Cave M (1999) Understanding Regulation. Theory, Strategy and Practice, Oxford University Press, Oxford. Buy On-Line by clicking here. This is particularly useful for the early part of the course and for the section on privatisation.

These texts are cited in the programme schedule above and both are on set text in the library. By buying On-Line I will receive around 5% on every book sale which I will donate to the Parkinson's Disease Society.

Electronic Reading Plug-Ins

You can access the electronic reading list for this course by clicking here

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.
 

The library has some excellent journals in this field and we will be using them You might want to consult the following:

The European Business Review

The Journal of Common Market Studies.

Access the Electronic Journals by clicking here (You will need a password if you are off campus)


©Kevin Hinde 2000 - 2004