Theories of the firm and industry structure
Not offered in 1995
6 points * One 3-hour session per week * Clayton
Synopsis The subject deals with the economics of firm development, size, industry structure and dynamics. A microeconomic theory of the firm is developed, which compares vertical organisation structures commonly found within the firm, to the horizontal relations which tend to characterise markets. Questions of inter-firm relationships are then considered with a particular emphasis on relative firm size, market power, and industry structure, stability and efficiency. Recent developments in the theory of industry structure are first considered and then criticised from the perspective of the broader and more descriptive school of industrial organisation. Some knowledge of basic mathematics or some background in microeconomics will be helpful for this subject.
Assessment Class participation * Short class assignments * One major paper