Publisher's Synopsis
Intended as a text for advanced undergraduate and graduate students specializing in industrial economics, this book gives a comprehensive review of recent theoretical and empirical works, emphasizing the need to relate the two in a subject where they have often been separated.;The particular innovation of the text is the integration of traditional analysis of the effect of market structure on performance with analysis of the behaviour of large diversified firms that act to change market structures over time. Other features include the book's exposition of the theory of growth of the firm, the detailed discussion of goals, the treatment of finance and investment and the consideration of optimal resource allocation under uncertainty.;This new edition reflects the latest theoretical developments in the field. It includes a new chapter on vertical integration and price discrimination, covers all the recent oligopolistic theory and provides a full analysis of individual firms' behaviour and control with new explanation of the principle-agent problem. It also includes all the new strategic entry deterrence and contestability literature.
