LINK:

Required Reading below, to be used as main reference

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Core text:
- Sloman, J., Garratt, D. and Guest, J. (2022). Economics. 11th edition. Pearson.

TASK 1:

Discussion: Market regulation, oligopoly collusion and the prisoners’ dilemma

This tasks asks you to think about the economic analysis of monopoly/oligopoly and the prisoners’ dilemma game.

Your Task

Post your answers to one or both of the following questions:

What are the economic arguments for implementing competition policy to regulate (monopoly/oligopoly) markets? Please refer to economic analysis to address this question e.g. by comparing price and output under competition and monopoly (try to use diagrams to add rigour to your arguments).
What are the incentives for collusion in oligopoly and why does the prisoners’ dilemma analogy suggest that collusion is likely to be fragile?

NB: Game theory and the prisoners’ dilemma are discussed in Lesson 3 which focuses on how game theory is used to analyse strategic decision making using (mainly) payoff matrices. The prisoners’ dilemma game has attracted much attention in economics and more widely in the social sciences and beyond. For example, studies in the evolution of cooperation highlight how cooperative species are quite successful but rare. These kinds of explorations raise the following questions: ‘What are the conditions necessary to reinforce cooperation? Is it possible to punish cheaters? If so, how? When does cooperation fail?’ These questions highlight the relevance of game theory and in particular the prisoners’ dilemma. Given the wider relevance of game theory, it is not surprising that advances in game theory have generated a number of Nobel Memorial prizes in Economic Sciences. Arguably the most important of these was the 1994 prize awarded to John Nash.

Nobel Memorial Prize in economic sciences given to John Nash: https://youtu.be/Vp6sGsNTyWI

When posting your responses to one or both of these questions, please use economic theory. In answering question 1 you may also wish to refer to case studies of regulation and/or collusion in support of your arguments. You could also discuss the market in which your own business/enterprise operates if applicable.

Guidelines

Your contributions should ideally use diagrammatic analysis and game theory as appropriate.
Please use diagrams, tables or other analytical illustrations as much as possible.
You may find it easier to construct diagrams using PowerPoint or Word. However, you can also construct diagrams using pen and paper and upload a photo.
Please be concise.
Your post should be no longer 300 words in total.

TASK 2: Activity and discussion: The gains and losses from globalisation

In this is task you are asked to think about the gains and losses from Globalisation.

The task draws on the concepts, principles and models you have looked at in this unit.

Your Task

Please complete both parts of the activity below:

Part 1: Please read one or more of the following papers: (all links)

Part 2: After reading the papers you have chosen, and after reviewing the content of this unit, your task is to:

Construct a brief but critical discussion of the gains and losses from Globalisation.

Guidelines

In total your contribution should be 300 words in length, excluding the text in your diagrams.

Please use concise English.
Please use diagrams, tables or other illustrations.
Put together your critical discussion.
Please post your discussion of the gains and losses from globalisation, providing clear explanations and giving reasons for your thoughts.