Course Related Pages

ECON 845

Economics 845      Industrial Organization I

Instructor: Ruqu Wang
Dunning Hall, Room 304
Office Hours: 10:00 - 11:30, Thursdays
Teaching Assistant:  Alex Arsenault, Dunning 337, 613-533-6000 ext.  (e-mail:
TA Office Hours: 11:30-1:00, Fridays

Link to Announcements for ECON 845 (updated Nov.14, 2019)

Course Description:
In this course, we study the fundamental theory in Industrial Organization. Topics include monopoly, product quality, price discrimination, vertical control, static and dynamic price competition, product differentiation, entry, reputation, limit pricing, and research and development. Our focus is on the theoretical aspects of each topic. The structure of the lectures follows Tirole’s The Theory of Industrial Organization, and recent papers related to the topics will be discussed.
The purpose of this course is to provide students with the theory of industrial organization which is widely used in other fields of economics, especially in empirical industrial organization. Homework will be assigned from time to time. Working independently on the homework is strongly recommended, as this is the only effective way to prepare you for the exams. On the other hand, study groups discussing course materials (excluding the homework assignments) are encouraged.
This course is for MA and Ph.D students.
class participation -- 10%
homework -- 20%
midterm exam & term paper -- 70%
Midterm Exam: Friday, October 18, 2019, in class, closed book, closed notebook
Required Textbook:
The Theory of Industrial Organization, by Jean Tirole, MIT Press, 1988
1. Oz Shy, 1995, Industrial Organization: Theory and Applications, The MIT Press.
2. Luis Cabral, 2000, Introduction to Industrial Organization, MIT Press.
3. Handbook of Industrial Organization, Volumes I and II (1989, Edited by R. Schmalensee and R.D. Willig), and III (2007, Edited by M. Armstrong and R. Porter), North-Holland.
Please note: The material on this website is copyrighted and is for the sole use of students registered in this course. The material on this website may be downloaded for a registered student’s personal use, but shall not be distributed or disseminated to anyone other than students registered in this course. Failure to abide by these conditions is a breach of copyright, and may also constitute a breach of academic integrity under the University Senate’s Academic Integrity Policy Statement.

ECON 845 Announcements

Announcements for ECON 845

1. Ruqu's office hour on Thursday, Sept.26, 2019 has been cancelled.

2. Assignments

  • Assignment #1: Here.
  • Assignment #2: Exercises 5.7 (p.223) and 6.8 (p.264) in Tirole's book. Due: Friday, Oct.11, 2019.
  • Assignment #3: Here

3. Topics to be covered in this course:

  • Chapter 1:; learning by doing (p.71); 1.1.3; 1.5
  • Chapter 2: 2.1.1; 2.1.2; 2.3.1 and 2.4
  • Chapter 3: 3.1; 3.2; 3.5.3
  • Chapter 5: 5.1; 5.2; 5.3; 5.4; 5.5; 5.6
  • Chapter 6: 6.1; 6.2; 6.3; 6.7.1
  • Chapter 7: 7.1; 7.3; 7.4
  • Chapter 8: (8.1; 8.2; 8.3)
  • Chapter 9: (9.4)
4. The midterm exam date has been changed to Tuesday, Oct. 29, 2019.
5. Student presentations for this course have been scheduled at 1:00-4:00 on Nov. 29, 2019 in MC A516. Each student has a maximum of 20 minutes.

6. Midterm Practice Questions.

7. Last year's midterm exam.

8. The tutorial for the midterm exam will be held from 10:00 to 1:00 on Monday, Oct. 28, at the Inner Reading Room, 3rd Floor Library (near the elevator), Dunning Hall.

9. #6 in the practice questions and #3 in last year’s midterm will not be covered by this midterm exam. I will post the solutions after the tutorial.

10. Solutions: 1, 2, 3, 4, 5, 6

11. Presentations: Friday, Nov. 29, 11:30-2:30, MC A516.

12. Papers to be covered: