Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.


The purpose of the course is to familiarize students to advanced topics and methods in Empirical Industrial Organization (IO). At the end of the course, students have learned how to estimate static demand and supply using both market level and individual level data, and how the estimation results can be used in applications. The course will start the process of preparing economics Ph.D. students to conduct thesis research in this area.

Credits: 6

Schedule: 08.01.2024 - 15.04.2024

Teacher in charge (valid for whole curriculum period):

Teacher in charge (applies in this implementation): Iivo Vehviläinen, Otto Toivanen

Contact information for the course (applies in this implementation):

The course has 4 teachers: Ari Hyytinen, Tanja Saxell, Otto Toivanen and Iivo Vehviläinen. If you have general questions, Otto or Iivo are a good starting point. For substantive matters you can ask the relevant lecturer directly.

Our TA is Helena Rantakallio. 

CEFR level (valid for whole curriculum period):

Language of instruction and studies (applies in this implementation):

Teaching language: English. Languages of study attainment: English


  • valid for whole curriculum period:

    The course starts with a reminder of logit and nested logit models before moving on to BLP models, identification issues, and the choice of optimal instruments. In addition, we will cover market power and merger analysis, and other applications.

Assessment Methods and Criteria
  • valid for whole curriculum period:

    Exercises (60 %), exam (40 %)

  • applies in this implementation

    Tentative plan for the exam: take-home exam during week starting 22 April 2023

  • valid for whole curriculum period:

    Contact teaching, independent work, exam


Study Material
  • valid for whole curriculum period:

    Research articles assigned during the course.

  • applies in this implementation

    See separate reading list.

    The assumption is that the materials marked as mandatory are read by the lecture they are discussed. 

Substitutes for Courses


Further Information
  • valid for whole curriculum period:

    Teaching Language : English

    Teaching Period : 2022-2023 No teaching
    2023-2024 Spring III-IV

  • applies in this implementation

    This is a PhD level course. We expect that you have completed the first year sequence in micro and econometrics, and have background in IO.

Details on the schedule
  • applies in this implementation

    Tentative plan below, changes possible to the content details

    Week 1

    Mon, 15 Jan 2024, 14.15-15.45 – U006 – Lecture 1 – Otto

    Mon, 22 Jan 2024, 14.15-15.45 – U006– Lecture 2 – Otto

    Introduction: Structural econometrics, modelling 

    Discrete choice models: Logit and nested logit, (welfare, interpretation of parameters, market& individual level data)

    Exercise #1 (logit, nested logit), due 1 Feb

    Week 2

    Mon, 29 Jan 2024, 14.15-15.45 – U006 – Lecture 3 – Tanja

    Mon, 5 Feb 2024, 14.15-15.45 – U006 – Lecture 4 – Tanja

    Random coefficient models, BLP

    New: individual level data, what to do with zero market shares

    Exercise #2 (BLP), due 29 Feb

    Week 3

    Mon, 12 Feb 2024, 14.15-15.45 – U006 – Lecture 5 – Otto

    19 Feb exam week / winter holiday

    Mon, 26 Feb 2024, 14.15-15.45 – T003 – Lecture 6 – Otto

    Topics: Reading group style treatment of a chosen paper

    Supply side (start from simple logit / one product per firm).)

    Exercise #3 (Simulate data), due 14 March

    Week 4

    Mon, 4 March 2024, 14.15-15.45 – T003 – Lecture 7 – Iivo

    Mon, 11 March 2024, 14.15-15.45 – T003 – Lecture 8 – Iivo

    Applications: 1) Merger simulation, 2) Market power

    Exercise #4 (Merger simulation), due 28 March

    Week 5

    Mon, 18 March 2024, 14.15-15.45 – T003 – Lecture 9 – Ari

    Mon, 25 March 2024, 14.15-15.45 – T003 – Lecture 10 – Ari

    Econometric identification, normalizations in identification, instruments for and identification in BLP

    New: outside good (definition, estimation etc.)

    No exercise

    Week 6

    Mon, 1 April 2024, Easter

    Mon, 8 April 2024, 14.15-15.45 – T003 – Lecture 11 – Tanja

    Mon, 15 April 2024, 14.15-15.45 – T003 – Lecture 12 – Otto

    Tanja: Demand estimation: Choice frictions, other firm decisions

    Otto: Consideration sets, pass-through

    No exercise