There are no pre-requisites for this module to be added

The costs and benefits of using the market. Transaction costs; contracts; asset specificity. Technical and agency efficiency. Economies of scale and scope. Rationale for diversification. Economics of the five forces. Market structure; structure and competition. Dynamics of pricing and non-price rivalry. Entry and exit to market. Framework for competitive advantage; value creation. Economic logic and evaluation of cost and differentiation advantage. Sustainability in different market structures. Determinants of innovation, evolution and environment.

Upon completion of this module you will be able to

LO1: Critically explore the vertical boundaries of the firm and understand the nature of transaction costs of the market and the economics of vertical integration.

LO2: Evaluate the economies of scale and scope in assessing the horizontal boundaries of the firm together with the economic rationale for diversification.

LO3: Analyse industry, market structure and competition and how each affects the firm’s decisions.

LO4: Critically assess the dynamics of pricing and non-price rivalry on firms’ decisions.

LO5: Analyse competitive advantage and evaluate the economics of sustaining and originating competitive advantage through innovation, evolution and the firm’s environment.