Advanced Industrial Organization

Course content

This course advances on some topics from the undergraduate course on Industrial Organization (IO). The course covers mainly theoretical IO (and only to a lesser extent empirical IO). Topics include Price Discrimination, Vertical Relationships and Contracting Externalities, Dynamic Competition, Auctions, Regulation of Monopolies,  Market Power, Mergers, Collusion and Two-sided Markets.

Learning outcome

The students should acquire a level of knowledge, where they understand the details of the theories and are able to analyze problems within industrial organization using the acquired tools. It is the aim that the student learns how to model economic problems in markets with few firms, using the appropriate (often game theoretic) methods, as well as how these models are solved. The students should be able to discuss the real-world relevance of the theories in an informed manner.

The book by Tirole is a classic text on IO theory. Although it never really goes out of date and is still a standard reference for every serious IO specialist, the book is now almost 30 years old. To bring the students to the research frontier, more recent research papers will cover various topics in theoretical IO.

After completing the course, the student should be able to:


  • Understand the theories at a level as found in research papers published in the major journals.


  • Solve formal models using tools from mathematical optimization theory and game theory.

  • Analyze questions related to industrial organization drawing upon one or more theories and to present this analysis in writing using a scientific and concise language.



  • Analyze formal models that are variations of the models and theories covered in the course and to provide economic intuition for the results obtained.


Jean Tirole: “The Theory of Industrial Organization” MIT press, 1988, plus a number of journal articles.

The course Microeconomics III is strongly recommended. The course Industrial Organization is recommended. Mathematics and microeconomics as taught in the Bachelor program economics is expected.

3 hours lectures a week from week 6 to 20 (except holidays).

The overall schema for the Master can be seen at

Timetable and venue:
To see the time and location of lectures please press the link/links under "Se skema" (See schedule) at the right side of this page (E means Autumn, F means Spring).

You can find the similar information partly in English at
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-F18; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Forår/Spring – Week 5-30”
Press: “ View Timetable”

7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
at the computers of Copenhagen University.
The exam assignment is given in English and must be answered in English.
Without aids
Marking scale
7-point grading scale
Censorship form
No external censorship
The course can be selected for external assessment.
Criteria for exam assessment

Students are assessed on the extent to which they master the learning outcome for the course.

To receive the top grade, the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.

Single subject courses (day)

  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 161
  • Exam
  • 3
  • English
  • 206