This upper-level undergraduate text provides an introduction to industrial organization theory along with applications and nontechnical analyses of the legal system and antitrust laws. Using the modern approach but without emphasizing the mathematical generality inherent in many of the arguments, it bridges the gap between existing nontheoretical texts written for undergraduates and highly technical texts written for graduate students. The book can also be used in masters' programs, and advanced graduate students will find it a convenient guide to modern industrial organization.The treatment is rigorous and comprehensive. A wide range of models of all widely used market structures, strategic marketing devices, compatibility and standards, advertising, R&D, as well as more traditional topics are considered in versions much simplified from the originals but that retain the basic intuition.Shy first defines the issues that industrial organization addresses and then develops the tools needed to attack the basic questions. He begins with perfect competition and then considers imperfectly competitive market structures including a wide variety of monopolies, and all forms of quantity and price competitions. The last chapter provides a helpful feature for students by showing how various theories may be related to particular industries but not to others.Topics include: the basics needed to understand modern industrial organization; market structure (monopoly, homogenous products, differentiated products); mergers and entry; research and development; economics of compatibility and standards; advertising; quality and durability; pricing tactics; marketing tactics; management, compensation, and information; price dispersion and search theory; and special industries.
"This book presents the main ideas of modern industrial organization, many of which are explained without using calculus. Only the ability to follow logical arguments is needed for these sections. Oz Shy also provides a very nice introduction to topics which are typically not covered in other texts, namely the basic results about compatibility and the choice of standards as well as a concise analysis of specific industries." Jacques Thisse, Professor of Economics at the Sorbonne and CERAS, Paris
Introduction: the study of industrial organization; law and economics; industrial organizations and international trade. Part 1 Theoretical background: basic concepts in noncooperative game theory, normal form games, extensive form games, repeated games, appendices games with mixed actions, games with imperfect information; technology, production cost, and demand: technology and cost, the demand function, appendix: consumer surplus - quasi-linear utility. Part 2 Market structures and organization - perfect competition: non-increasing returns to scale, increasing returns to scale, marginal-cost pricing and social welfare; the monopoly - the monopoly's profit-maximization problem, monopoly and social welfare, discrimination monopoly, the cartel and the multiplant monopoly, durable-goods monopolies, appendix: the legal approach; markets for homogeneous products: Cournot Market structure, sequential moves, Bertrand Market structure, Cournot versus Bertrand, self-enforcing collusion, international trade in homogeneous products, appendix: Cournot with heterogeneous firms; markets for differentiated products: two differentiated products, monopolistic competition in differentiated products, "location" models, appendices: inverting demand systems, equilibrium in the linear city; concentration, mergers, and entry barriers: concentration measures, mergers, entry barriers, entry deterrence, contestable markets, appendices: merger and antitrust law, entry deterrence and antitrust law. Part 3 Technology and market structure - research and development: classification of process innovation, innovation race, cooperation in R&D, patents, licensing an innovation, governments and international R&D races, appendices: patent law, legal approach to R&D joint ventures, mathematical appendix; the economics of compatibilidad and standards: the network externalities approach, the supporting services approach, the components approach. Part 4 Marketing - advertising: persuasive advertising, information advertising, targeted advertising comparison advertising, other issues concerning advertising, appendix: advertising regulations; quality, durability, and warranties: personal income and quality purchase, quality as vertical product differentiation, market structure, quality, and durability, the innovation-durability tradeoff, the market for lemons, quality-signalling games, warranties, appendix: the legal approach to products liability; pricing tactics - two-part tariff and peak-load pricing: two-part tariff, nonuniform pricing, peak-load pricing, can firms "control" the seasons? (Part contents).
Series: Industrial Organization
Tertiary; University or College
For Ages: 18+ years old
Number Of Pages: 488
Published: 17th January 1996
Publisher: MIT Press Ltd
Country of Publication: US
Dimensions (cm): 22.6 x 15.0
Weight (kg): 0.68