The Economics of Industry

This information is for the 2018/19 session.

Teacher responsible

Prof John Sutton 32L. 4.32 , Dr Pasquale Schiraldi 32L. 4.22 and Prof Martin Pesendorfer 32L.4.19


This course is available on the MPA Dual Degree (LSE and Columbia), MPA Dual Degree (LSE and Hertie), MPA Dual Degree (LSE and NUS), MPA Dual Degree (LSE and Sciences Po), MPA Dual Degree (LSE and Tokyo), MPA in International Development, MPA in Public Policy and Management, MPA in Public and Economic Policy, MPA in Public and Social Policy, MPA in Social Impact, MSc in Econometrics and Mathematical Economics, MSc in Economics, MSc in Economics (2 Year Programme) and Master of Public Administration. This course is available with permission as an outside option to students on other programmes where regulations permit.


Students must have completed Introductory Course in Mathematics and Statistics (EC400).

In exceptional circumstances, students may take this course without EC400 provided they meet the necessary requirements and have received approval from the course conveners (via a face to face meeting), the MSc Economics Programme Director and their own Programme Director. Contact the Department of Economics for more information ( regarding entry to this course.

Course content

A graduate course in Industrial Organization, which aims to provide students with a working knowledge of current theoretical and empirical methods for industry studies. Applications of these methods are considered in industry case studies.

Topics include: Pre-requisites in Game Theory, An introduction to current developments in Oligopoly Theory. A formal analysis of conduct in concentrated industries (cartel stability, limit pricing, predatory pricing, etc), Demand estimation in homogenous and differentiated product industries, Production function estimation, Empirical techniques for oligopoly models and auction markets, Identification of conduct, Economies of Scale, R&D, Advertising, Vertical restraints. The topics will be discussed with detailed applications for selected industries and considering competition policy questions.


20 hours of lectures and 10 hours of seminars in the MT. 20 hours of lectures and 10 hours of seminars in the LT.

Formative coursework

Two marked assignments per term.

Indicative reading

Two books which provide a basic framework are J Tirole, Theory of Industrial Organization, MIT Press, 1989 and J Sutton, Technology and Market Structure, MIT Press, 1998. A full reading list will be supplied at the beginning of the course.


Exam (25%, duration: 2 hours) in the January exam period.
Exam (25%, duration: 2 hours, reading time: 10 minutes) in the summer exam period.
Essay (50%, 6000 words) in the ST.

Key facts

Department: Economics

Total students 2017/18: 19

Average class size 2017/18: 9

Controlled access 2017/18: Yes

Lecture capture used 2017/18: Yes (MT & LT)

Value: One Unit

Guidelines for interpreting course guide information

Course survey results

(2014/15 - 2016/17 combined)

1 = "best" score, 5 = "worst" score

The scores below are average responses.

Response rate: 72%



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