SCHOOL OF ECONOMICS FINANCE AND BANKING

UUM COLLEGE OF BUSINESS

No. Information on Course

1. Course Name : INDUSTRIAL ORGANIZATION

2. Course Code: BEEI3053

3. Name(s) of Academic Staff:

 MUHAMMAD RIDHUAN BOS

4. Rationale for the inclusion of the course in the programme:

Industrial organization is concerned with the working of market and industries in
particular the way firms compete with each other. This course considering as separate
subject of microeconomics is its emphasis on the study of the firm strategies that are
characteristics of market interaction: price competition, product positioning,
advertising, research and development and regulation.

5. Semester/Year Offered: 7/4

6. Total Student Learning Face to face Online SLPA TLT

Time (SLT) Learning

TL = Traditional Lecture TL T P SCL/O A OL OA

T = Tutorial
20 0 0 14 2.8 8.0 10.2 65.1 120.0
P = Practical
SCL/O = Student
Cantered
Learning/Others
A = Assessment
OL= Online Learning
OA = Online
Assessment
SLPA= Self Learning
Preparation and

1
 Assessment
TLT = Total Learning
Time

8. Credit Value: 3

9. Pre-requisite (if any):

BEEB2013 MICROECONOMICS & BEEB2023 MACROECONOMICS

10. Objective(s) of Course :

After completing this course, students should be able to:
i. understand basics theoretical framework of industrial organization
ii. analyzing the performance of firms
iii. understand government intervention in the economy to control monopoly and
firm with market power
11. Course Learning Outcomes:
Upon completion of the course, students are able to
i. explain the concepts underlying of industrial organization (C2,A3)
[Online assessment (Q1:Q2:Q3) ;Final Exam]
ii. interpret the concepts on firm or industry market structure, competition and
performance (C3,A5,)
[PLO 5- Communication Rubric]
iii. analyse on firm strategies and Government policies (C4)
[PLO 7- Info Mgmt and Lifelong Learning]

12. Transferable Skills:

Knowledge, Communication skills and lifelong learning. (Refer Appendix 2)

13. Teaching-learning and assessment strategy:

Mixed method between teacher-centred and student-centred. For the assessment
strategy it is a continuous assessment. (Refer Appendix 3)

14. Synopsis:
The course is related with firm, market and the industry research. The main industrial
organization analysis involved empirical and theoretical framework aspects of market
structure, behavior and firms interaction in the market, as well as firms and markets
performance. The focus is also given on issues relating to the Government's policy to
control the firm and the market.

15. Mode of Delivery:

Traditional Lectures, Online teaching and group discussion.

Assessment Methods and Types:

16.
Coursework – 60%

2
 - Quiz 1-10%
- Quiz 2-10%
- Quiz 3-10%
- Group Assignment- writing (20%) and presentation (10 %)

Individual Assignment – 40% (Due to Pandemic Cov-19)

17. Mapping of the course/module to the Programme Aims

Programme Aims
Course Learning Outcomes

The aims of Bachelor of Science in Economics 1 2 3 4

(Honours) are to produce graduates with a broad
knowledge of economics, good analytical skills, as
√ √ √
well as inculcating positive personal characteristics.

21. Mapping of the course/module to the Programme Learning Outcomes

Course Learning Outcomes

Programme Learning Outcomes

1 2 3 4
1.To explain the concepts and theories related to
√
economics.
2.To apply the concepts, tools, and techniques of
economics

3.To demonstrate interaction skills with society and

stakeholders

4.To satisfy the relevant professional ethical code

of conduct

5.To communicate effectively in oral and writing, √

possess leadership skills and be able to work in
groups at any levels.

6.To analyse critically for effective decision making

7.To utilise economic knowledge and ICT skills for √

lifelong learning process

8.To demonstrate managerial skills and

entrepreneurial thrust

25. Content outline of the course/module and the SLT per topic

3
 Face to Face OL SL TLT
Learning
Topics/Weeks
Outcomes
SCL/
TL T P
O
1 Introduction
1.1. Introduction
1.2. Two approaches to the study of 1, 2 2 1 3 6
industrial organization
1.2.1 Structure, Behavior
Performance Approach
1.2.2 The Chicago School
approach
2. The neoclassical theory of the firm
2.1. Introduction
2.2. The Neoclassical theory : historical 1, 2 2 1 3 6
development.
2.3. Theory of perfect competition and
monopoly
2.4. Efficiency and welfare properties of
perfect competition and monopoly
3. Oligopoly: non collusive model
3.1. Introduction
3.2. Model of output and price 1,2 3 2 5 10
determination
3.3. Game theory
4. Oligopoly: collusive model
4.1. Collusive action and collusive forms
4.2. Collusive institution 1,2 3 2 5 10
4.3. Factor conducive to cartel formation
4.4. Influences on cartel stability
4.5. Evidence on cartels in action
5. Oligopoly Behaviour:Barriers to Entry
5.1. Barriers to entry definition
5.2. Barriers to entry classification 1,2,3 1 1 2 4 8
5.3. Entry-deterring strategies
5.4. The Effect of Barrier to Entry
5.5. Empirical evidence on entry
6. Pricing Strategy
6.1. Cost plus pricing
6.2. Price Discrimination 1,2,3 1 1 2 4 8
6.3. Peak-load pricing
6.4. Transfer Pricing
6.5. Price dispersion

4
 6.6. Limit pricing
6.7. Predatory pricing

7. Product Differentiation and advertising

7.1. Types of Product Differential
7.2. Monopolistic competition 1,2,3 4 2 6 12
revisited:the total Social Optimal of
product differentiation
7.3. Hotellings location Model
7.4. Salops location Model
7.5. Advertising and profit maximizations
7.6. Advertising as barrier to entry
7.7. Empirical evidence
8. Vertical Integration
8.1. Motives for vertical integration
9.1.1 enhance market power 1.2,3 2 1 2 5 10
9.1.2 cost saving
8.2. Vertical disintegration
8.3. Empirical evidence
9. Technological Progresses, Research &
Development
9.1. Process Of Technological Changes 1,2, 3 1 2 2 5 10
9.2. The Market Structure, Firm size
9.3. Empirical evidence
10. Public Policy
10.1. Theory of Competition Policy
10.2. Example Implementation of the 1,2,3 1 1 2 4
Competition Law in the United
States
10.3. The Implementation of the
Competition Law in Malaysia
20 0 0 14 8 42 84

Student Learning & Online Online

Face to Face SLPA TLT
Assessment Learning Assessment

Course Delivery and

34.0 8.0 42.0 84.0
Preparation

Coursework
0.3 10.2 12.1 22.5
60%

Final Examination (Individual 2.5 11.00 13.5

Assignment)

5
40%

Total Notional Hours 36.8 8.0 10.2 65.1 120.0

Credit Hours 3

Main References:
Done E. Waldman & Elizabeth J. Jensen. (2012) Industrial Organization: Theory & Practice, Fourth Edition.
Pearson-Addison Wesley
Additional References:
Ahmad Sobri Jaafar, Organisasi Indusri: Teori & Aplikasi. Penerbit Universiti Utara Malaysia. Sintok, 2006
Church, J.,Ware,R. (2000). Industrial Organization: A Strategic Approach, McGraw-Hill International
Editions.
Dennis W.Carlton & Jeffrey M.Perloff, (2005). Modern Industrial Organization. Fourth Edition.Pearson-
Addison Wesley.
Lipcynski, J., Wilson,W,& Goddard,J. (2005). Industrial Organization: Competition, Strategy, Policy. Essex,
England: Prentice Hall.
.