Industry Economics

The subject explores the relationship between the behaviour of firms and the industry and markets they compete in, and provides students with an understanding of industry structure and firm conduct. The strategic behaviour of firms toward rivals and customers starts with cost and pricing, but also includes product choice, investment decisions, marketing and contracting. The subject looks at why different industries are more or less competitive, how the behaviour of firms differs across industries, and how and why activities are organised, both inside and outside firms. Topics covered include economies of scale and scope, decision making under uncertainty, auctions and incentives.

The subject's approach is based on students solving problems, and puts emphasis on issues in industry and business, and the topics covered are also applicable to non-profits and public organisations. Students connect economics to decisions made by firms, rather than just learn models. The subject enhances students' professional practice through problem-based learning exercises such as case studies.