Program Overview
ECON3009 Firm Behaviour and Strategy
General Information
The unit convenor and teaching staff for ECON3009 are Rohan Best. This unit is worth 10 credit points and has prerequisites of ECON2003 or ECON203.
Unit Description
This unit applies the tools of microeconomic theory to the study of firm behaviour in imperfectly competitive markets where strategic interactions affect the industry outcomes. It addresses key questions such as: how firms make important decisions regarding what to produce, how much to produce, and how to price output depending on the level of competition they face; how do they decide optimal levels of advertising or R&D; and how do firms behave in markets where network issues are important? Students learn how to see markets, firms and government as three different institutional structures that serve to accomplish economic objectives. Topics covered may include oligopoly market structures, anti-competitive actions such as predatory behaviour and collusion, and non-price models of competition related to advertising, R&D and network economics.
Learning Outcomes
On successful completion of this unit, students will be able to:
- Effectively communicate theories and knowledge of industrial organisation and strategic interactions in technical and non-technical language.
- Analyse the relevance of industrial organisation and business strategies to everyday economic life.
- Evaluate real-world applications of economic theory relevant to efficiency and equity considerations, from a broad ethical perspective.
General Assessment Information
The assessments for this unit include:
- Class Test: 25% of the total marks, to be held during lecture time.
- Research Assignment: 25% of the total marks, with detailed information provided on iLearn and during lectures.
- Final Examination: 50% of the total marks, to be held during the University Examination Period.
Assessment Tasks
The assessment tasks for this unit are:
- Class test: 25%, due on 31/03/2025
- Research assignment: 25%, due on 23/05/2025
- Final examination: 50%, to be held during the exam period
Delivery and Resources
The unit will be delivered through:
- Weekly lectures and workshops
- Pre-recorded short videos supplementing material covered in the main lecture
- A prescribed textbook: Pepall, L., D Richards and G. Norman, 2014, Industrial Organization: Contemporary Theory and Empirical Applications, 5th Edition, Wiley.
Unit Schedule
The unit schedule includes topics such as:
- Introduction to IO; Microeconomics review
- Market structure and power; Technology and cost
- Price discrimination
- Product variety and quality
- Bundling and tie-in sales
- Cournot competition; Price competition
- Price competition (cont.); Dynamic games
- Entry deterrence and predation; Predatory conduct
- Price fixing, repeated games and antitrust
- Advertising, market power and information; Research and development
- Research and development (cont.); Network issues
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Assessment Procedure
- Complaints Resolution Procedure for Students and Members of the Public
- Special Consideration Policy
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct.
Academic Integrity
At Macquarie, academic integrity is at the core of learning, teaching and research. The university offers a range of resources and services to help students reach their potential.
Student Support
Macquarie University provides a range of support services for students, including:
- Academic Success
- The Library
- IT Support
- Accessibility and disability support
- Mental health support
- Safety support
- Social support
- Student Advocacy