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Industrial Organization




Theoretical analysis in the field is heavily based on Game Theory . It should not be confused with the related psychological area, Industrial And Organizational Psychology .

The common Market Structures studied in this field are the following:

Industrial organization investigates the outcomes of these market structures in environments with

The subject has a theoretical side and a practical side. According to one text book: "On one plane the field is abstract, a set of analytical concepts about competition and monopoly. On a second plane the topic is about real markets, teeming with the excitement and drama of struggles among real firms" (Shepherd, W.; 1985; 1).

Given that it was the first field that used game theory in economics, industrial organization has become the natural exporter of methodological tools to other branches of Microeconomics , such as Organization Economics and Corporate Finance . Industrial organization has also has siginificant practical impacts on Antitrust Law and Competition Policy .


REFERENCES

  • Scherer, Frederic M., and David Ross (1990). ''Industrial Market Structure and Economic Performance'', Houghton-Mifflin, 3rd ed.

  • Shepherd, William (1985). ''The Economics of Industrial Organization'', Prentice-Hall. ISBN 0-13-231481-9 This is an undergrad text.

  • Schmalensee, Richard (1987). industrial organization," '''', v. 2, pp. 803-08.

  • Shy, Oz (1995)''Industrial Organization: Theory and Application'', MIT Press. This is an advanced undergraduate text.

  • Tirole, Jean ''The Theory of Industrial Organization'', (The MIT Press, 1988). This is a "standard" graduate textbook in the field. The book requires extensive knowledge of calculus as well as game theory.



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