Industrial Economics deals with the behavior of firms, their interactions with the consumers and the corresponding market outcomes. The focus of analysis in industrial economics is on understanding strategic behavior of firms. In those cases, where the interaction of firms results in undesirable outcomes in the market place, industrial economics offers and develops policy options to remedy market failures.
Students specializing in Industrial Economics will have a firm grasp of the principles of strategic decision making and the consequences of such decisions in the market place. Thus, the chair offers possibilities for students who plan to work in leading positions in large firms as well as consulting firms. Moreover, the students will be excellent candidates for continuing their careers in government agencies and shaping public policy.
The students who specialize in Industrial Economics will acquire a solid understanding of microeconomic methods and game theoretic tools that are used to investigate strategic interactions between market participants. They will be presented with examples of the use of these methods and ideas in real life situations. The topics studied in Industrial Economics inform decisions of competition authorities and courts. By means of case studies from Europe and Germany, the students will become familiar with the current practice in the implementation of competition laws in Europe. Moreover, students will also have the chance to learn empirical methods of data analysis that will aid decision making and developing strategies. These empirical methods are also useful for other areas such as marketing.