Aims & Learning Objectives:
This course aims to provide an understanding of how the competitive context within which firms operate can be analysed and some of the ways in which firms may respond to and attempt to influence the intensity of competition in theory and practise. The objective is to develop students' ability to apply the tools of microeconomics and use actual data to investigate determinants of the competitive environment and selected aspects of firms' strategy with particular emphasis on oligopolistic conditions.
Content:
The five forces affecting industry profitability. Buyers and demand estimation. The intensity of rivalry between firms and measurement of monopoly power. Strategic groups. Entry conditions and the estimation of costs. Exit decisions. Oligopoly price and non price behaviour under conditions of competition and cooperation. Entry deterrence. Small and medium sized firms in the competitive environment. The impact of government competition policy on strategic options.
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