ECON329-24S1 (C) Semester One 2024

Industrial Organisation

15 points

Start Date: Monday, 19 February 2024
End Date: Sunday, 23 June 2024
Withdrawal Dates
Last Day to withdraw from this course:
  • Without financial penalty (full fee refund): Sunday, 3 March 2024
  • Without academic penalty (including no fee refund): Sunday, 12 May 2024


Imperfectly competitive markets and behaviour of firms. Monopoly models: standard, dominant firm, durable good, natural monopoly, perfectly contestable markets, price discrimination. Oligopoly models: Cournot, Bertrand, product differentiation. Measuring market power, competition policy.

Industrial Organization (IO) studies operation and performance of imperfectly competitive markets as well as the behaviour of firms in these markets. The big questions are: why are markets organized the way they are; how the organization of markets determines how firms behave and how the markets perform; and how the behaviour of firms affects the structure and performance of markets. This field of economics has developed substantially in recent decades, especially through the application of non-cooperative game theory, and has had strong influence on competition policy and regulation in New Zealand.
ECON329 is designed to introduce the student to selected topics in modern IO. We will study the behaviour of firms in markets that are structured as monopoly, dominant firm or oligopoly, and we will analyse the welfare implications of these market structures. It is well known that imperfectly competitive markets may operate inefficiently, which leaves room for improvements by regulators. We will look at the measures regulators use for assessing and controlling the exercise of market power.

Learning Outcomes

The objectives of the course are:

LO1: Demonstrate an understanding of market power, its definition and sources as well as public policy measures to identify and combat market power (assignments, discussion forums, term paper and final exam)
LO2: Demonstrate an ability to analyse different situations where the industry has a monopoly or a dominant firm (Assignment 1, discussion forum, term paper, final exam)
LO3: Demonstrate an ability to analyse different situations where the industry has a small number of large firms (discussion forum, term paper, final exam)
LO4: Demonstrate knowledge of Part 2 and Part 3 the New Zealand Commerce Act 1986 and understanding of how it relates to economic theory (discussion forum, term paper, final exam)


Recommended Preparation

Timetable 2024

Students must attend one activity from each section.

Lecture A
Activity Day Time Location Weeks
01 Tuesday 13:00 - 15:00 E5 Lecture Theatre
19 Feb - 31 Mar
22 Apr - 2 Jun
Tutorial A
Activity Day Time Location Weeks
01 Friday 11:00 - 12:00 Rehua 101 Lectorial
26 Feb - 24 Mar
22 Apr - 2 Jun
02 Thursday 14:00 - 15:00 Rehua 101 Lectorial
26 Feb - 31 Mar
29 Apr - 2 Jun

Course Coordinator

Laura Meriluoto


Assessment Due Date Percentage  Description
Assignments 20%
Term paper 30%
Final Exam 40%
Discussion forums 10% 5 forums

The ‘45% rule’ does not apply to this course. That is, student does not need to reach 45% weighted average across invigilated assessments. Please refer to Learn for further information.
Assessment In Te Reo Māori In recognising that Te Reo Māori is an official language of New Zealand, the University provides for students who may wish to use the Te Reo Māori in their assessment. If you intend to submit your work in Te Reo Māori you are required to do the following:
Read the Assessment in Te Reo Māori Policy and ensure that you meet the conditions set out in the policy. This includes, but is not limited to, informing the Course Coordinator 1) no later than 10 working days after the commencement of the course that you wish to use Te Reo Māori and 2) at least 15 working days before each assessment due date that you wish to use Te Reo Māori.

Textbooks / Resources

Recommended reference books:

• Church, J. and Ware, R. Industrial Organization: A Strategic Approach. McGraw Hill, 2000.
• Carlton, D.W., Modern Industrial Organization. 5th International edition, Pearson, 2014.
• Motta, M., Competition Policy – Theory and Practice. Cambridge, 2004.

You will likely find Church and Ware the most useful reference. It is available free on-line (Learn has a link to it). There should also be some hard copies available in the bookstore and in the restricted loans library. Carlton is the main reference for one topic in the class. Motta is great if you want to learn more about the interplay between Industrial Organisation and European competition policy.

Indicative Fees

Domestic fee $893.00

International fee $4,200.00

* All fees are inclusive of NZ GST or any equivalent overseas tax, and do not include any programme level discount or additional course-related expenses.

For further information see Department of Economics and Finance .

All ECON329 Occurrences

  • ECON329-24S1 (C) Semester One 2024