ECO2103 Industrial Economics

Industrial economics has been an area of rapid growth over the last 30 years on both the theoretical and the empirical sides. The course is concerned with both, and in particular, the extent to which theoretical and empirical work meant to aid in the formulation of policies towards industry. The theory of the firm has given some useful insights into the working of the market economy, and empirical work has also made an important contribution to the understanding of industry. However, theory and empirical work have not yet put us in the position of being able to draw simple and generally applicable prescriptions in the field of industrial economics, and it is hard to imagine that they will ever succeed in doing so. It has to be admitted that we do not know the answers to many of the most important questions. However, a course in industrial economics forms the basis for appreciating the challenge and the framework to pursuing research in the right direction. 

Course Objectives
In dealing with economic problems of firms and industries and their relationship with society, a course in Industrial economic is intended to achieve the following objectives; 

• Presentation of the fundamental theoretical approach to industrial behaviours and outcomes
• Examination of traditional and alternative theories of the firm and market structure; and 
• Analysis of the various Industrial policy framework.

Course Learning Outcomes
Students undertaking a course in industrial economics are expected at the end of the semester to;

• Explain the various form of industrial structures and organizations 
• Examine the different oligopolistic arrangement s and their welfare effect on society 
• Analyze the forms of industrial growth and concentration 
• Provide the incentives for different pricing strategies by firms in diverse business environment 
• Assess the various adverting strategies adopted and their economic outcomes