Advanced Industrial Organization


The objective of this course is to cover, at an advanced level, theoretically and practically important issues in the study of imperfectly competitive markets, introducing the student to the relevant academic literature and modelling tools.

General characterization





Responsible teacher

Steffen Hoernig


Weekly - Available soon

Total - Available soon

Teaching language




This course is based on academic articles which will be provided via the online platform.

Background readings:

Tirole Jean. The Theory of Industrial Organization. Cambridge, MA: MIT Press, 1988.

Paul Belleflamme & Martin Peitz, Industrial Organization: Markets and Strategies,2nd edition, Cambridge University Press, 2015.


Moodle page, with news and course materials.

Teaching method

This course is based on reading and discussing important classic and recent academic articles on the topics covered. Both an individual and a group assignment will give the students the opportunity to deepen their involvement with the topics of the course.

Evaluation method

  • Mandatory final exam: 50%, minimum grade 9.0 Class participation: 10%

  • One group assignment: 20% (due 23/02)

  • Each group of 3-4 students prepares a referee report on some paper proposed by the course instructor.

  • One individual assignment: 20% (due 14/03)

  • An assignment containing theory and practical applications.

Subject matter

  • Week 1: Introduction:

    Product differentiation;

    Representative consumer and location models;

    Vertical differentiation;

  • Week 2: Strategic behaviour:

    Strategic complements and substitutes;

    Animal terminology;

    Strategic delegation;

  • Week 3: Switching and search costs:

    Equilibrium price level and dispersion;

    Competitive effects;

  • Week 4: Network effects:

    Network competition and compatibility;

    Network interconnection;

  • Week 5: Two-sided markets:

    Pricing in two-sided markets;

    Competitive bottlenecks and interchange fees;

  • Week 6: Bundling:

    Pure and mixed bundling;

    Bundling competition.


Programs where the course is taught: