Publisher's Synopsis
This advances, graduate level textbook in the theory of industrial organization will depart from the traditional structure/performance/conduct model by introducing aspects of game theory into the basic approach to industrial organization. It is concerned with the economic theory of markets and industry.;Its purpose is to link traditional analysis of industrial organization with recent advances in the economic theory of markets. A critical review of classical, static oligopoly provides a beginning and foundation for the development of multi-stage and repeated-game analyses of dynamic oligopoly.;This progression occurs in a way which recognizes that industrial history matters, that the costs of information are critical in determining what is preferred by consumers and what is supplied by sellers, and that market competition is a dynamic process. The structure and solution concepts of game theory, and especially an attention to the "rules of play" are used as a common thread in the succession of analysis. Market equilibria and welfare optimal solutions are generally compared.;Topics dealt with extensively include - classical oliogopoly equilibria, product differentiation, product variety and welfare, durable - good monopoly, price discrimination, entry and exit, research and development, monopoly outcomes with non-cooperative behaviour, advertizing, and market equilibria with imperfect information.
