"In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets."
The study of how firms and industries interact and how market structure impacts economic outcomes.
Market Structure: A study of the different types of market structures such as monopoly, oligopoly, monopolistic competition, and perfect competition which affect market outcomes such as prices, output, and efficiency.
Market Power and Competition: An analysis of the competition strategies and tactics of firms, the degree of market power they hold, and how these impact market outcomes.
Entry and Exit Barriers: A study of the obstacles that firms encounter when entering or exiting a market such as economies of scale, brand loyalty, patents, and regulations.
Pricing Strategies: An exploration of the different strategies and tactics firms use to price their products such as price discrimination, bundling, two-part tariffs, and peak load pricing.
Vertical Integration: A discussion of how firms combine different stages of production, distribution, or retail in their supply chain, and the benefits or costs of such integration.
Product Differentiation: An analysis of the extent to which firms can differentiate their products from those of competitors, and how this contributes to market power and price levels.
Regulation and Antitrust Policy: A study of the different regulation and antitrust policies implemented by governments to promote more competitive markets and prevent anti-competitive behavior such as mergers and collusion.
Game Theory: An introduction to the use of game theory in Industrial Organization to model and predict strategic behavior of firms in different market scenarios.
Transaction Cost Economics: A study of how transaction costs, defined as the costs incurred by firms in making economic transactions, affect the organization of markets and the behavior of firms.
Dynamic Competition: An exploration of how firms' competition strategies and behaviors may change over time, and how they affect technological progress, investment decisions, and market dynamics.
Monopoly: A single company dominates an entire industry or market, giving it a significant amount of control over prices and output.
Oligopoly: A small number of large firms dominate an industry, often resulting in price collusion and limited competition.
Perfect competition: A market structure in which a large number of small firms compete in a market, with no firm having the ability to influence prices or output.
Monopsony: A single buyer, such as a large corporation or government agency, has significant control over the prices and terms offered to suppliers.
Duopoly: A market structure in which two firms dominate an industry, often resulting in intense competition and pricing strategies.
Strategic competition: A type of competition in which firms compete on non-price factors such as product quality, brand image, or unique features.
Collusion: An agreement between firms to restrict competition, often resulting in higher prices and reduced output.
Price discrimination: A pricing strategy in which different customers are charged different prices for the same product or service.
Vertical integration: When a company controls the entire supply chain, from production to distribution.
Horizontal integration: When a company acquires or merges with similar companies in the industry to increase market share and reduce competition.
"Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition."
"It analyzes determinants of firm and market organization and behavior on a continuum between competition and monopoly, including from government actions."
"There are different approaches to the subject. One approach is descriptive in providing an overview of industrial organization, such as measures of competition and the size-concentration of firms in an industry."
"A second approach uses microeconomic models to explain internal firm organization and market strategy, which includes internal research and development along with issues of internal reorganization and renewal."
"A third aspect is oriented to public policy related to economic regulation, antitrust law, and, more generally, the economic governance of law in defining property rights, enforcing contracts, and providing organizational infrastructure."
"The extensive use of game theory in industrial economics has led to the export of this tool to other branches of microeconomics, such as behavioral economics and corporate finance."
"Industrial organization has also had significant practical impacts on antitrust law and competition policy."
"The development of industrial organization as a separate field owes much to Edward Chamberlin, Joan Robinson, Edward S. Mason, J. M. Clark, Joe S. Bain, and Paolo Sylos Labini, among others."
"Complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition."
"Analyzes determinants of firm and market organization and behavior on a continuum between competition and monopoly, including from government actions."
"One approach is descriptive in providing an overview of industrial organization, such as measures of competition and the size-concentration of firms in an industry."
"Microeconomic models explain internal firm organization and market strategy, which includes internal research and development along with issues of internal reorganization and renewal."
"A third aspect is oriented to public policy related to economic regulation, antitrust law, and, more generally, the economic governance of law in defining property rights, enforcing contracts, and providing organizational infrastructure."
"The extensive use of game theory in industrial economics has led to the export of this tool to other branches of microeconomics, such as behavioral economics and corporate finance."
"Industrial organization has also had significant practical impacts on antitrust law and competition policy."
"The development of industrial organization as a separate field owes much to Edward Chamberlin, Joan Robinson, Edward S. Mason, J. M. Clark, Joe S. Bain, and Paolo Sylos Labini, among others."
"[Industrial organization] builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets."
"Complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition."
"[Industrial organization] analyzes determinants of firm and market organization and behavior on a continuum between competition and monopoly, including from government actions."