Industrial Economics

This information is for the 2022/23 session.

Teacher responsible

Prof Martin Pesendorfer 32L.4.19


This course is available on the BSc in Business Mathematics and Statistics, BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Economics and Economic History, BSc in Economics with Economic History, BSc in International Social and Public Policy and Economics, BSc in Mathematics and Economics, BSc in Philosophy, Politics and Economics and BSc in Social Policy and Economics. This course is available as an outside option to students on other programmes where regulations permit. This course is available with permission to General Course students.


Students must have completed Microeconomic Principles I (EC201) or Microeconomic Principles II (EC202) or Microeconomics II (EC2A1).  A highly motivated student who has done well in EC2A3-- as a guideline 65 or better – is welcome on the course, if handling economics mathematically comes naturally. Also, students must have completed Introduction to Econometrics (EC220) or Principles of Econometrics (EC221) or Econometrics II (EC2C1) or Econometrics I (EC2C3) in combination with Econometrics II (EC2C4), or equivalent.  Students who believe they have completed an equivalent course instead of one of these must receive permission from Prof. Pesendorfer before selecting the course.

Course content

The aim of the course is to provide students with a working knowledge of theoretical and empirical methods for industry studies. Topics may include: monopoly, price discrimination, oligopoly theory, mergers, product differentiation, dynamic industry models, collusion, demand estimation, production function estimation, empirical techniques for oligopoly models, identification of conduct, advertising, search, auction markets, empirics of auction markets, winner’s curse, collusion in auctions, matching markets, and moral hazard. The topics will be discussed with applications for selected industries and considering competition policy questions.


15 hours of lectures and 10 hours of classes in the MT. 15 hours of lectures and 9 hours of classes in the LT. 1 hour of classes in the ST.

There will be a reading week in Week 6 of LT (no lectures or classes that week).

This course is delivered through a combination of lectures and classes totalling a minimum of 50 hours across Michaelmas Term, Lent Term and Summer Term.

Formative coursework

Two marked assignments per term.

Indicative reading

The course will draw on a variety of texts, the main ones being:

  1. Jeffrey R. Church and Roger Ware. Industrial Organization: A Strategic Approach.
  2. Jean Tirole. Theory of Industrial Organization
  3. Guillaume Haeringer. Market Design: Auctions and Matching

A detailed reading list will be provided at the beginning of the course.

Some notes will be provided where textbook coverage is inadequate.


Exam (100%, duration: 3 hours, reading time: 15 minutes) in the summer exam period.

Key facts

Department: Economics

Total students 2021/22: 60

Average class size 2021/22: 20

Capped 2021/22: No

Lecture capture used 2021/22: Yes (MT & LT)

Value: One Unit

Guidelines for interpreting course guide information

Course selection videos

Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.

Personal development skills

  • Self-management
  • Problem solving
  • Application of numeracy skills