Course Contents

 Scope of Industrial Economics • Scope of Industrial Economics and its History  Theory of the Firm • Production Process and Costs • Production Function • Cost Function and Multiple Output Cost Functions  Theory of the Firm: Alternative Approaches • Transaction Cost Theory • Property Right Theory • Agency Theory • Resource Based Theory  Organization of the Firm • Procuring Inputs • Specialized Investments • Optimal Input Procurement  Market Structures • Perfect Competition • Monopoly • Monopolistic Competition • Oligopoly  Nature of Industry • Firm Size and Industry Concentration • Technology, Demand and Market Conditions • Pricing Behaviour, Integration and Merger  Industrial Location Analysis • General Determinants of Industrial Location • Approaches to Industrial Location Analysis • Operational Approach to Industrial Location  Industry and Innovation • Process of Innovation: Concepts and Relationship • Measurement of Innovation Activities • Theory of Technological Innovation • Diffusion of New Technology  Government Regulation of Industry • Need for Government Intervention in Industry • Ways and Means of Government Regulation of Industries • Social Control Over Industry  Industrial Agglomeration • Measuring Agglomeration • Population and Housing Price Growth • Sources of Agglomeration • Congestion Costs • Agglomeration Economies and Public Policy

Course Synopsis

This course analyzes the problems of the real economy that cannot be described within the framework of a classical economic theory that is taught in traditional microeconomics and macroeconomics. The course will cover all the main fields of industrial organization theory: theory of a firm, the theory of imperfect competition, and the theory of economic regulation. The students are presumed to be familiar with the standard courses in microeconomics and macroeconomics.

Course Learning Outcomes

Upon completing this course, the students shall be able to: 1. Understand basic models of the behaviour of firms and industrial organization and how they can be applied to policy issues. 2. Be familiar with the role of regulation and technological innovation in industries 3. Understand the importance of agglomeration economics and their policy implications