SHEB811 Industrial organization


The course is intended for the students enrolled in the Bachelor program in Business studies. It includes lectures introducing students to the market mechanisms and their analysis, to the elements of corporate behavior and the assessment of market efficiency. The course is structured into three main parts: 1) Market/sector structure; 2) Strategic conduct of corporations depending on the market environment; 3) Effects from the corporate strategies and assessment of the sector efficiency. It is analyzed the influence of corporate strategies and of state intervention policies on the sector structure.

The course aims at:

• Presenting the modern theories on the firm and market functioning.

• Introducing the students to the concept of competitive markets and the effects of the so called “market failure”.

• Explaining the determinants of the market structure and the “rules of the game”.

• Studying the marketing (pricing, advertising, distribution, R&D, etc.) strategies available to big corporations.

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Business Studies (Joint programme with The University of York)


Asst. Prof. Elena Spasova, PhD

Course Description:


Students who complete this course:

1) will know:

• The classical and contemporary concepts of industrial organization and competitive corporate behavior.

• The microeconomic implications and the macroeconomics consequences from imperfect competition.

• The methods and the instruments for market efficiency analysis.

2) will be able to:

• Analyze and assess the market competitiveness and give well justified opinion on the corporate behavior and strategy in a specific market.

• Transform the theoretical knowledge into practical skills for analysis of the market efficiency and corporate competitiveness.

Students are required to have the following knowledge and/or skills:

• No preliminary requirements. However, basic knowledge of microeconomics is recommended.

Full-time Programmes

Types of Courses:

Language of teaching:


  1. Introduction to the course. Industrial organization. The “Structure – Conduct - Performance” paradigm. Productive and allocative productivity. Technological progress and R&D. State intervention in the economy.
  2. Microeconomic foundations of industrial organization. Market structure and levels of competitiveness. Defining competition and competitive markets.
  3. Theories of the firm. Corporate conduct models. Limits on the size of firms and structure of firms. Decision-making in companies.
  4. Concentration and market power. Determinants of market concentration. Measurement of concentration. Buyer concentration. Sources and indicators of market power. Economies of scale and of scope. Internal and external economies of scale. Mergers. Types of mergers. Factors for mergers.
  5. Oligopoly. Oligopolistic markets and corporate strategies in oligopolistic markets. Non-collusive models of oligopoly. Collusive models of oligopoly. Oligopolistic markets and game theory.
  6. Pricing strategies in competitive markets. Pricing policy. Practices in pricing. Transfer pricing. Price discrimination, dumping, and predatory pricing.
  7. Product differentiation and advertising. Types of product differentiation and models explaining it. Horizontal and vertical differentiation. Determinants of advertising expenditure. Advertising and types and products. Advertising targets. Advertising intensity.
  8. R&D and innovation policy. Investment in R&D – assessment. Intellectual property protection. Diffusion. Corporate strategies in R&D. The role of the state for the innovational capacity of the economy.
  9. Regulation on competitive markets. Competition and antitrust policy – problems and potential.


Basic reading

• Waldman, D.E., & Jensen, E.J. (2019). Industrial Organization: Theory and Practice (5th ed.). Routledge.

• Lipczynski, J., J. Wilson and J. Goddard. 2005. Industrial organization. Competition, strategy, policy. Second Ed., FT Prentice Hall.

Additional reading

• Stead R.,P.Curwen and K.Lawer. 1997. Industrial economics. Theory, Applications and Policy. McGraw-Hill.

• Williamson, Oliver E. 1996. Industrial organization.

• Church J. and R.Ware. 2000. Industrial Organization. Astrategic Approach. McGraw-Hill.

• Greer D.F.1992. Industrial Organization and Public Policy. Third Edition, Macmillan, 1992