EC341: Industrial Organisation & Introduction to Competition Policy

Industrial organisation is concerned with the use of economic analysis in studying competition between firms and the evolution of market structure.

This course will focus on understanding the way firms make decisions and the effects of those decisions on market outcomes like prices, quantities, the type of products offered, and social welfare.

Over the past decade, this has been one of the most exciting areas of economics, as a new generation of game-theoretic models have provided us with new ways of analysing a range of practical issues, and addressing some long-standing empirical questions.

The topics covered in this course span a wide range of issues, from predatory pricing to cartel stability, and from the role of non-price competition to the evolution of high technology industries.

The theoretical models introduced in the lectures will be applied in classes devoted to case studies of specific industries and to some antitrust court cases.

Readings and class discussions will provide background and introduction to a variety of topics, many of which will be covered in lecture in greater depth. The theoretical models introduced in the lectures will be supplemented with case studies of specific industries. An introduction to Competition Policy issues will also be discussed.

Prerequisites: Intermediate microeconomics, and knowledge of differential calculus.

Level: 300 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: Two written examinations.

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

This course is ideal for students who would like to develop their intuition for pricing and other strategic behaviour by firms and develop their skills for analysis of formal models.

The goals of the course include development of intuition for pricing and other strategic behaviour by firms, and development of skills for analysis of formal models.

It will provide the essential knowledge required to pursue the answer to fundamental questions such as: Why are markets organized the way they are? How do the ways in which a market is organized affect firms' behaviour? How does the behaviour of firms affect the structure of markets and market outcomes?

The course also aims to deliver a higher level understanding of predatory pricing, cartel stability, the role of non-price competition, and the evolution of high technology industries.

The design of this course is guided by LSE faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.