Module description
What is the module about?
This module critically examines a range of approaches within the field of industrial organisation. Fundamental theoretical questions are addressed such as: What is the nature of the firm? How do firms grow? What is distinctive about the modern corporation? What are the essential characteristics of successful industrial districts? What is the nature of the market? What are quasi-markets and why (and with what effects) have they been introduced into sectors like health and broadcasting? The module introduces various modern economic perspectives including: Transaction Cost Economics, Contractual, Resource-Based and Institutional theories of the firm, Evolutionary approaches to Industrial Organisation and accounts of the market order which highlight the role of social rules, relationships and conventions in the functioning of competitive processes. Throughout the module theoretical perspectives are illustrated via reference to relevant (firm level or industry wide) case studies many of which have an international focus. An aim of the module is to provide students with both an appreciation of competing theoretical positions and an ability to evaluate their strengths and limitations. A further aim is to ensure students have an awareness of how recent developments in the theory of the firm and analysis of market coordination relate to previously dominant perspectives. Students will obtain a clear understanding of how these theories have been applied. The module also examines the implications of these theoretical approaches at the level of policy with reference made to the recent promotion of market like structures in the certain public sectors.
Who should do this module?
This module will be of interest to anyone keen to understand better key economic and social institutions such as the firm, the corporation and the market. The module will also be of interest to those eager to understand the full range and diversity of modern economic perspectives on industrial organisation. The focus on the evaluation of quasi-market initiatives means that the module will be relevant for those interested in debates in public policy. The module provides a thorough theoretical and methodological grounding for students who may wish to pursue further advanced modules in economics and strategy later in their programmes of study.
Provisional Lecture Outline
Lecture 1: Introduction to Industrial Organisation/ Coase on the Nature of the Firm
Lecture 2: Transaction Cost Economics: Theoretical Framework & Illustrative Applications
Lecture 3: Marx on the Nature of the Capitalist Enterprise
Lecture 4: Veblen on the Business Enterprise
Lecture 5: Resource Based Theories of the Firm
Lecture 6: Adam Smith’s Conception of the Market
Lecture 7: Hayek on Competition as a Discovery Procedure
Lecture 8: Co-operation and Competition: Trust, Networks and Inter-Firm Relations
Lecture 9: Quasi-Market Reforms: The Case of Broadcasting
Lecture 10: Quasi-Market Reforms: The case of Health
Assessment details
45% Coursework
45% Coursework
10% Tutorial assessment
Teaching pattern
Weekly Lecture
Weekly Tutorial
Suggested reading list
Putterman, L. and Kroszner, R, eds, 2009, The Economic Nature of the Firm: A Reader, third edition, Cambridge University Press, Cambridge. [Background]
Buckley, P and Michie, J, 1996, Firms, Organisations and Contracts, Oxford University Press, Oxford. [Background]
Watson, M, 2018, The Market, Agenda Publishing, Newcastle. [Background]
Coase, R, 1988, The Firm, the Market and the Law, University of Chicago Press, Chicago. [Background]
Murphey, M, 2018, Thorstein Veblen: Economist and Social Theorist, Routledge, London. [Background]