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EC326: Industrial Economics 2: Strategy & Planning

  • Kobi Glazer

    Module Leader
15 CATS - Department of Economics
Spring Module

Principal Aims

The aim of this module is to introduce students to more advanced topics in the modern theory of industrial organisation, and to expose students to the more advanced industrial organisation theory and modelling.

Principal Learning Outcomes

By the end of the module the student should be able to demonstrate an understanding of how to formulate, model and analyse issues in industrial organisation; demonstrate an understanding and knowledge of the issues and topics covered in the syllabus.


The module will typically cover the following topics:

Multi-Market Monopoly. Learning-by-doing, good will and introductory offers, externalities between markets (e.g., use in home market of software raises value in office markets, piracy), international trade and below marginal cost dumping; Price Discrimination. Third-Degree price discrimination, Second-Degree price discrimination (individual rationality, incentive compatibility, two part pricing, etc.); Dynamic competition of the monopolist against himself. Durable Goods Monopoly; Dynamic competition of the monopolist against himself. Quality Provision; Product Differentiation and Advertising; The strategic choice of managerial incentives.

Collusion. Price Wars, Non-cooperative collusion under imperfect price information; Consumer Switching Costs; Limit Pricing; Consumer Search/Internet. Search, obfuscation, add-on pricing; Patents. Secrecy vs. patenting, patent trolls, litigation in patents; Industrial Organisation of Financial Markets. Information; Aggregation in Markets, Design of Prediction and Betting Markets, Limit order markets; Uniform Pricing (Dealership/LSE) markets, Relationship (OTC, LSE) Markets; Structural design of financial markets. Price tick size, priority rules, minimum ADT quote, trading speed, payment for order flow.


Core Module
L116 - Year 3, L117 - Year 4
Optional Module
LM1D (LLD2) - Year 3, V7ML - Year 3, V7MM - Year 4, V7MP - Year 3, L1P5 - Year 1, L1PA - Year 1, V7MR - Year 3, LM1H - Year 4, GL12 - Year 4, GL11 - Year 3, LA99 - Year 3, L1L8 - Year 3, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, L100 - Year 3, L103 - Year 4
Pre or Co-requisites
EC202 (with EC208 and EC231 desirable) or EC204 (with EC208 and EC231 desirable).
May not be combined with PO327 Comparative Industrial Policy Not available to non-final year students on Economics-based degrees
Part-year Availability for Visiting Students
Available in the Spring term only (2 x problem sets - 12 CATS) and in the Spring and Summer terms together (2 x problem sets and 1 x 2 hour exam – 15 CATS)


Assessment Method
Coursework (20%) + 2 hour exam (80%)
Coursework Details
Two problem sets (worth 10% each)
Exam Timing

Exam Rubric

Time Allowed: 2 hours

Answer ALL FOUR questions. Answer questions 1 and 2 in one booklet and 3 and 4 in another booklet.

Approved pocket calculators are allowed.

Read carefully the instructions on the answer book provided and make sure that the particulars required are entered on each answer book.

Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.

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