BUS 530 Module 3 Case
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module_3_information.pdf
Module 3 - Home
MARKET STRUCTURES
Modular Learning Outcomes
Upon successful completion of this module, the student will be able to satisfy the following outcomes:
• Case o Analyze the behavior of the firm under alternative
market conditions. o Analyze the Prisoner’s Dilemma game and obtain
dominant strategies and Nash equilibrium with and without collusion.
• SLP o Explain pricing strategy in each of the following market
structure: perfect competition, monopolistic competition, monopoly, and oligopoly.
o Analyze the dominant characteristics of the industry. • Discussion o Explain the theories of industry regulation. o Discuss antitrust laws and litigations.
Module Overview
Module 3 introduces the analysis of alternative market structures: perfect competition, monopolistic competition, monopoly, and oligopoly. Managerial decision making for the profit-maximizing firm is analyzed in the context of alternative market structures. The Prisoner’s Dilemma and game theory are applied to study the conduct of interdependent firms and to the analysis of strategic behavior in cooperative and non-cooperative environments. Price competition and non-price competition are analyzed.
Module 3 - Background
MARKET STRUCTURES
Required Reading
Links to Competition
Bhat, M.S., and Rau, A.V. Managerial Economics and Financial Analysis, Hyderabad, IND BS Publications, 2008. ProQuest ebrary. Web. Retrieved August 18 2014 Chapter 4: Market Structures, pp. 85-107.
Townsend, H. Foundations of Business Economics, Market and Prices. London, GBR: Routledge, 1995. ProQuest ebrary. Web. Retrieved August 18, 2014. Chapter 5: Pure Competition, Perfect Competition and Efficient Markets, pp 59-68.
Optional Reading
Thomas, C.R., and Maurice, S.C., Managerial Economics, McGraw Hill (2008) Power Point Presentation available athttp://highered.mheducation.com/sites/0073402818/student _view0/chapter11/powerpoint_presentation.html
Welker, J. (2012, Feb. 19). From Short-run to Long- run in Perfect Competition [Video File]. Retrieved from https://www.youtube.com/watch?v=krUu_u63MiA
Links to Monopoly
Required Reading
Bhat, M.S., and Rau, A.V. Managerial Economics and Financial Analysis, Hyderabad, IND BS Publications, 2008. ProQuest ebrary. Web. Retrieved August 18 2014 Chapter 4: Market Structures, pp. 85-107.
Townsend, H. Foundations of Business Economics, Market and Prices. London, GBR: Routledge, 1995.
ProQuest ebrary. Web. Retrieved August 18, 2014. Chapter 6: Monopoly and Economic Welfare, pp 79- 94.
Optional Reading
Thomas, C.R., and Maurice, S.C., Managerial Economics, McGraw Hill (2008) Power Point Presentation available athttp://highered.mheducation.com/sites/0073402818/student _view0/chapter12/powerpoint_presentation.html
Links to Oligopoly
Required Reading
Townsend, H. Foundations of Business Economics, Market and Prices. London, GBR: Routledge, 1995. ProQuest ebrary. Web. Retrieved August 18, 2014. Chapter 7: Oligopoly: Interdependent Decisions, pp. 96-113.
Optional Reading
mjmfoodie. (2009, April 1). Episode 25: Market Structures [Video File]. Retrieved fromhttps://www.youtube.com/watch?v=9Hxy- TuX9fs&list=PLHrMjIhDBGgxKEsypxrq1zQuSIhNFkX0L
Links to Game Theory, the Prisoners Dilemma, and Strategic Decision Making
Required Reading
Thomas, C.R., and Maurice, S.C., Managerial Economics, McGraw Hill (2008) Power Point Presentation available athttp://highered.mheducation.com/sites/0073402818/student _view0/chapter13/powerpoint_presentation.html
Links to Monopolistic Competition
Required Reading
mjmfoodie. (2011, July 8). Episode 29 Monopolistic Competition [Video File]. Retrieved fromhttps://www.youtube.com/watch?v=T3F1Vt3IyNc
Links to Government Regulation of Monopoly
Required Reading
Thomas, C.R., and Maurice, S.C., Managerial Economics, McGraw Hill (2008) Power Point Presentation available at:http://highered.mheducation.com/sites/0073402818/stude nt_view0/chapter16/index.html
Optional Reading
Consumer Protection: Government v. Market Regulation (von Mises Institute). A discussion between Peter G. Klein and Robert P. Murphy available at: https://www.youtube.com/watch?v=GM2ZMhjyT0U
The Social Function of Profits (Von Mises Institute) available at https://www.youtube.com/watch?v=WXuZfe9lTMk
Module 3 - Outcomes
MARKET STRUCTURES
• Module o Compare and contrast four alternative market structures
and analyze the effects on strategic decision making. • Case o Analyze the behavior of the firm under alternative market
conditions.
o Analyze the Prisoner’s Dilemma game and obtain dominant strategies and Nash equilibrium with and without collusion.
• SLP o Explain pricing strategy in each of the following market
structure: perfect competition, monopolistic competition, monopoly, and oligopoly.
o Analyze the dominant characteristics of the industry. • Discussion o Explain the theories of industry regulation. o Discuss antitrust laws and litigations.
