Introductory description

This module focuses on strategic behaviour underlying the various reasons why there is a range of prices even for homogeneous goods, something not treated in traditional models. Thus for example, consumers’ search behaviour, or lack of search, can influence how much they pay, as we see from energy markets, also access to information and firms’ manipulation of information. Once we move beyond homogeneous goods, additional factors come into play, such as price discrimination/ differentiation, for example penalties for consumers who are loyal, and then there are non-price features, differing links between sellers and their suppliers, amongst other things. The approach involves a mixture of models and empirical illustrations and focuses on students’ ability to understand real-world phenomena.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

The module will typically cover the following topics:
Models of search and of switching behaviour and their implications; advertising, quality disclosure and acquisition. Price discrimination between consumers, including self-selection of tariffs; bundling of products, models of revenue management; auction mechanisms for selling goods and services. Vertical integration, vertical restraints and franchising; vertical linkages in electricity.

Learning outcomes

By the end of the module, students should be able to:

• Subject Knowledge and Understanding: By the end of the module students will be able to understand reasons for and constraints on vertical relationships between activities; The teaching and learning methods that enable students to achieve this learning outcome are: Lectures and seminars, including formative problem sets covered in seminars The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem set and examination
• Subject Knowledge and Understanding: By the end of the module students will be able to understand the extent to which models in the above areas receive support from empirical studies The teaching and learning methods that enable students to achieve this learning outcome are: Lectures and seminars The summative assessment methods that measure the achievement of this learning outcome are: Assessed essay
• Cognitive Skills: By the end of the module students will be able to have an appreciation of how to structure an argument and analysis The teaching and learning methods that enable students to achieve this learning outcome are: The summative assessment methods that measure the achievement of this learning outcome are: Assessed essay
• Key Skills: By the end of the module students will be able to work in groups to achieve a desired outcome. The teaching and learning methods that enable students to achieve this learning outcome are: Formative and summative problem sets worked on in small groups,
• Subject Knowledge and Understanding: By the end of the module students will be able to understand the possibilities of and constraints in pricing differently to different groups of consumers, including those with differential knowledge of prices. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures and seminars, including formative problem sets covered in seminars The summative assessment methods that measure the achievement of this learning outcome are: Assessed problem set and examination

Indicative reading list

Please see Talis Aspire link for most up to date list.

View reading list on Talis Aspire

Subject specific skills

Students will have the opportunity to develop skills in:
Analytical thinking and communication
Analytical reasoning
Critical thinking
Creative thinking
Strategic thinking
Problem-solving
Abstraction
Policy evaluation
Analysis of institutions
Analysis of incentives
Analysis of optimisation

Transferable skills

Students will have the opportunity to develop:
Research skills
Numeracy and quantitative skills
Data-based skills
IT skills
Written communication skills
Oral communication skills
Team work skills
Mathematical, statistical and data-based research skills