Course Details

Subject {L-T-P / C} : HS1349 : Industry and Development {3-0-0 / 3}
Subject Nature : Theory
Coordinator : Dr. Ipsita Roy


Unit-1: Introduction to Industrial economics - nature and scope - concept of firm and industry - types of firms - structure, conduct and performance of the firm.
Unit-2: Standard forms of market structure - pricing strategies and output determination of firms - profit maximization, sales maximization (William J. Baumol), utility maximization (Oliver E. Williamson), growth maximization (George K. Yarrow) - equilibrium of firms under perfect competition, monopoly, monopolistic competition and oligopoly - optimum price and output - economies of scale.
Unit-3: Price competition and non-price competition - strategic behaviour of firms - collusion and mergers - game theory - market failures and information asymmetry - advertising and product differentiation - market entry and exit - market concentration and diversification - R&D and innovation.
Unit-4: Productivity and efficiency Industrial productivity and development in India classification of industries Industrial policy and Indian Planning recent trends in Indian industrial growth

Course Objectives

  1. Identify and analyze the behavior of a firm under different market situations in a systematic way.
  2. Understand and assimilate the issues related to strategic behaviour in firms, R&D and innovation.
  3. Have a comprehensive coverage of firms' profitability and efficiency measurements, with applications to India's industrial structure.

Course Outcomes

Upon completion, students should have an in-depth knowledge of
i.   Market structure, conduct and performance
ii.  Strategic behaviour in firms
iii.  Innovation, R&D and the market
iv.  Industrial efficiency and its applications for the Indian economy.

Essential Reading

  1. Donald A. Hay, Derek J. Morris, Industrial Economics: Theory and Evidence, Oxford University Press, 1979
  2. R. R. Barthwal, Industrial Economics: An Introductory Textbook, New Age International Publishers, 2007

Supplementary Reading

  1. A. Singh and A.N. Sandhu, Industrial Economics, Himalaya Publishing House, Bombay, 1988
  2. Stephen Martin, Advanced Industrial Economics, Oxford, UK Blackwell Publisher, 2002