This course is available on the MSc in Economics (2 Year Programme). This course is not available as an outside option to students on other programmes. This course uses controlled access as part of the course selection process. For information on controlled access courses, including eligibility, application processes, deadlines, and departmental contact details, please refer to the Controlled Access Courses webpage.

New course for the 2027/28 academic session.

How to apply: These courses are intended for MSc Economics, MSc Economics (2 Year Programme), and MSc EME Students. Any external student must have successfully completed EC400 or EC451 in September and have approval of the Department of Economics.

Deadline for application: Please apply as soon as possible after the opening of course selection for all courses.

For queries contact: Econ.msc@lse.ac.uk

Pre-requisites:

Students must have completed EC451 or EC400 before taking this course.

Additional requisites:

In exceptional circumstances, students may take this course without EC400/EC451 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 (econ.msc@lse.ac.uk) regarding entry to this course.

The course examines the theory of firm behaviour and strategic interaction in both price and non-price dimensions. Topics covered may include, among others, the econometric estimation of demand and supply for differentiated products (continuous and discrete choice), identification and estimation of conduct, information and search, entry models and the role of sunk costs, collusion, auctions, and price discrimination.

Both theoretical and empirical contributions are studied, with attention to their implications for competition policy.

20 hours of lectures and 9 hours of seminars in the Autumn Term.

This course has a reading week in Week 6 of Autumn Term.

Two marked assignments.

Two books which provide coverage of topics are:

• Jean Tirole, Theory of Industrial Organization (MIT Press 1989)
• John Sutton, Technology and Market Structure (MIT Press 1998).

A full reading list will be supplied at the beginning of the course.

Exam (100%), duration: 120 minutes, reading time: 15 minutes in the Spring exam period.

This course is IRDAP-enabled, meaning that resit and deferred assessments will take place in August at the end of the academic year.