EC427
The Economics of Industry
This information is for the 2022/23 session.
Teacher responsible
Dr Pasquale Schiraldi
Prof Mark Schankerman
Availability
This course is available on the MSc in Econometrics and Mathematical Economics, MSc in Economics and MSc in Economics (2 Year Programme). This course is available with permission as an outside option to students on other programmes where regulations permit.
Pre-requisites
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 (econ.msc@lse.ac.uk) regarding entry to this course.
Course content
The course examines the theory of firm behaviour and strategic interaction in both price and non-price dimensions. Topics covered include the econometric estimation of continuous and discrete differentiated product demands, estimation of conduct, merger analysis, information and search, entry models and the role of sunk costs, advertising, estimation of production functions and productivity, single and multi-product monopoly, vertical and horizontal contracts, regulation of “natural” monopoly, theory of the firm and ownership, strategic competition and entry deterrence, horizontal and vertical product differentiation, and predatory pricing. Both theoretical and empirical contributions are studied, with their implications for competition policy issues.
Teaching
20 hours of lectures and 10 hours of seminars in the MT. 20 hours of lectures and 9 hours of seminars in the LT. 1 hour of seminars in the ST.
This course is delivered through a combination of classes and lectures totalling a minimum of 60 hours across Michaelmas Term, Lent Term, and Summer Term.
There will be a reading week in Week 6 of LT only (no lectures or classes that week).
Formative coursework
Two marked assignments per term.
Indicative reading
Two books which provide coverage of topics are Jean Tirole, Theory of Industrial Organization (MIT Press 1989) and John Sutton, Technology and Market Structure (MIT Press 1998). A full reading list will be supplied at the beginning of each term in the course.
Assessment
Exam (50%, duration: 2 hours, reading time: 15 minutes) in the summer exam period.
Essay (50%, 6000 words) in the ST.
Key facts
Department: Economics
Total students 2021/22: 26
Average class size 2021/22: 13
Controlled access 2021/22: Yes
Value: One Unit
Course selection videos
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