Industrial economics is concerned with the behavior of firms, their interactions with consumers, and the resulting market outcomes. The focus is on understanding the strategic behavior of firms. In cases where firms' interactions lead to undesirable outcomes in markets, industrial economics develops policies and strategies that end the market failure or at least improve market outcomes.
Students who specialize in industrial economics will have a good understanding of the fundamentals of strategic decision making, as well as the consequences of those decisions for the market. As a result, courses in this department are particularly well-suited for students who want to work in management positions in large corporations or in management consulting firms. In addition, they will be excellent candidates for positions in public agencies (antitrust offices, regulatory agencies, ministries) that shape and enforce policies.
Students specializing in industrial economics will gain a sound understanding of microeconomic and game-theoretic methods to analyze strategic interactions of market participants. In lectures given by the department, these methods and insights are illustrated with examples of business decisions. Furthermore, competition authorities and courts use industrial economic analysis to make judgments. Case studies are also used to familiarize students with current applications of competition law in Germany and Europe. In addition, students can learn the empirical methods that are indispensable to develop sophisticated strategies. These methods can easily be applied in other areas such as marketing.