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26044 Markets and Industrial Organization, 5 cr 
Code 26044  Validity 01.01.1950 -
Name Markets and Industrial Organization  Abbreviation MarketInd,Hki 
Credits5 cr  Date of expiry 10 years
TypeAdvanced studies Subject260 Economics 
KindCourse  Hours  
Study right   Gradingpoints (0-100), passed 
Recommended time 
Organisation Economics, Helsinki 

Course Description 

This course shows how micro-economic models can be used to analyse functioning of markets and industries. The course focuses on economic phenomena that are typically studied in the field of industrial organization (IO), such as market power, competitiveness of markets, product differentiation, natural monopoly, regulation of markets, vertically related industries, two-sided markets, markets with network effects, consumer inertia and markets with searching costs.

The course presents students with the necessary theoretical foundations for subsequent analytical studies of markets, strategic competition and economic implications of regulation. It also illustrates how IO models can be used to analyse data on markets outcomes.

This course consists of two parts: The first part introduces various tractable IO models that can be used to analyse market phenomena and to understand functioning of real-world markets. The second part consists of assigned readings and student presentations. Students will be asked to read assigned papers and to present them to others in class.

Doctoral students can also take this course.

Learning Goal 

You have the capacity to use the concepts and methods of modern industrial organization when analysing choices made by consumers and firms, as well as the functioning of various types of markets. You have also developed your analytical reasoning skills by working with equations to analyse micro-economic phenomena and market outcomes.

After completing the course, you will be able to 
  • identify different types of markets and how they function
  • apply essential IO concepts to evaluate consumers’ choices and firms' decisions in markets
  • explain competitive and strategic conduct from the perspective of managerial decision-making
  • develop business strategies for firms in different kinds of environments 
Course Category 

Class-based course

International Learning Experience 

We will study international markets


Required: An intermediate level course in microeconomics

Recommended: An advanced level course in microeconomics

Total Student Workload 

134 hours divided into
Scheduled (contact) hours: 30 h
Non-scheduled work: 104 h


Lectures + assigned readings + written assignment.

Kindly note that you are expected to be present at the first lecture session to confirm your participation in the course.

Literature and Course Material 
  • Belleflamme, P. & Peitz, M. (2015). Industrial Organization: Markets and Strategies. Second Edition. Cambridge: Cambridge University Press. Chapters 1-7, 16-17 
  • Tirole, J. (1988). The theory of industrial organization. Cambridge, MA: MIT Press.

Other material, as assigned by the lecturer during the course. 


Written course assignment (essay) (50%)
Class presentation (40%)
Active class participation (10%)

Non-degree studies (Open University, JOO and Contract Studies) 

Open university quota: 3
Quota for JOO-students: 3


Courses now and in the future (registration requires login and a valid study right)
Function Name Type cr Course coordinator Time table
Registration ended Markets and Industrial Organization, Hki  Course  Zhang, Jiekai 
26.10.20 -11.12.20 -

Future exams
no exams