BUSINESS ECONOMICS 2nd SYLLABUS

PAPER – 302

INDUSTRIAL ECONOMICS

UNIT 1: STRUCTURE - CONDUCT - PERFORMANCE PARADIGM

The Simple SCP model / framework without feedbacks, its critique and modified framework with feedback.

Ref: Stephen Martin- Advanced Industrial Economics, pp. 1-11

Stephen Martin- Industrial Economics, pp. 1-12

Fergusen and Fergusen- Industrial Economics, pp. 13-18

Giles Burgess, Industrial Organisation. pp. 32-33

UNIT 2: MARKET CONCENTRATION

Definition of the market, nature and measurement of market concentration, indices of concentration, inequality measures, Theories of measurement: deterministic and stochastic approach.

Ref: Stephen Martin- Industrial Economics, pp. 9-19, (Entropy Index omitted) 28-37

Giles Burgess, Industrial Organisation. pp. 77-80, 94-96.

UNIT 3: BARRIERS TO ENTRY

Concepts of Barriers to Entry by Bain, Demstez and Stigler, Sources of Barriers to Entry, Limit Pricing Theory, Strategic Entry deterrence and Contestable markets.

Ref: Stephen Martin- Advanced Industrial Economics, pp. 71-142

Giles Burgess, Industrial Organisation. pp. 31-32

UNIT 4: TECHNICAL PROGRESS & PERFORMENCE

Economics of Research, Market structure and incentive to invent, Market structure and innovation.

Ref: Stephen Martin- Advanced Industrial Economics, pp. 143-157

UNIT 5: VERTICAL INTEGRATION

Nature and extent of vertical integration, theories of vertical integration, monopolistic motives for vertical integration

Ref: Stephen Martin- Advanced Industrial Economics, pp. 172-192

UNIT 6: CONGLOMERATE DIVERSIFICATION

Concepts, measures, determinants and consequences of diversification

Ref: Stephen Martin- Advanced Industrial Economics, pp. 196-199, 206-212, 215-219.

UNIT 7: MERGERS

Concept of merger, different types of mergers, Public Policy relating to horizontal mergers: critique of Williamson and Libenstein’s approach.

Ref: Stephen Martin- Advanced Industrial Economics, pp. 265-269

Main Reading

1. Industrial Economics by Stephen Martin. It is supplemented by following

Supplementary Readings

1 Fergusen and Fergusen. Industrial Economics.

2 Giles Burgess, Industrial Organisation.

3 Stephen Martin, Advanced Industrial Economics.