This course will use theoretical industrial organisation models as tools and analyse their application on competition policy and regulation. Our starting point will be the introduction of market definition and market power. We will then consider the exercise of market power in a number of settings, such as through collusion, merger, vertical control, predation, and some non-price monopolization practices. Treatments of various potentially anti-competitive conducts in various guidelines will be discussed, including the ACCC merger guideline and Trade Practices Act 1974.

In the last part of the course, we review the theory of economic regulation. The materials covered include the basic theory of regulation and its application in network industries.

This is the last course in the applied micro econonomics sequence. For students considering taking this course as well as Industrial Organisation, the suggested sequence would be taking IO first.

In addition to the learning outcomes for the material taught in the pass course honours students will be:
- exposed to the main theoretical tools used by researchers in the field of Industrial Organization;
- have the capacity to use formally analyse competition policy issues.

The assessment will be based on a mid term test, a final exam and assignments. The exams may cover additional material than the Pass level exams.

Lectures and tutorials as for the pass course together with additional honours class.

Completion of or concurrent enrolment in ECON3057/ECON3157 Industrial Organisation (P/H) or ECON3101 Microeconomics 3.

ECON2101 Microeconomics 2, if entering with Industrial Organisation requisite; ECON3057/ECON3157 Industrial Organisation (P/H) if entering with Microeconomics 3 requisite.

Please see Course Website