The aspects of economics concerned with the organization of productive activities. This includes the factors determining which activities are co-ordinated within firms and which through markets; the problems connected with providing incentives within firms to overcome principal-agent problem; the relation between the structure of industries and their performance; and the public regulation of monopolies, mergers, and competition. ‘The new industrial economics’ is a name given to the application of game theory to the formal modelling of these areas.

• leisure
• lemon
• lender of last resort
• lending, property
• lending rate, minimum
• Leontief paradox
• Lerner
• less developed country
• leverage
• leveraged buy-out
• levy, capital
• levy, import
• liabilities
• liability
• liberalization
• liberal trade policy
• LIBOR
• licence, import
• licensing
• life assurance
• Life Assurance and Unit Trust Regulatory Organization
• life cycle
• life insurance
• LIFFE
• LIFO