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Industrial Organization: Markets and Strategies

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Overview

"Industrial Organization: Markets and Strategies provides an up-to-date account of modern industrial organization that blends theory with real-world applications. Written in a clear and accessible style, it acquaints the reader with the most important models for understanding strategies chosen by firms with market power and shows how such firms adapt to different market environments. It covers a wide range of topics including recent developments on product bundling, branding strategies, restrictions in vertical supply relationships, intellectual property protection, and two-sided markets, to name just a few. Models are presented in detail and the main results are summarized as lessons. Formal theory is complemented throughout by real-world cases that show students how it applies to actual organizational settings. The book is accompanied by a website containing a number of additional resources for lecturers and students, including exercises, answers to review questions, case material and slides"--Provided by publisher.

"Among the numerous decisions taken by firms is the make-or-buy decision, whereby firms compare the costs and benefits of manufacturing a product or service against purchasing it. Typically, the firm will prefer the 'make' option over the 'buy' option if the purchase price is higher than the in-house manufacturing cost or if outside suppliers are unreliable. Naturally, the firm must also have the necessary skills and equipment to meet its own product standards. There is a clear analogy between this generic dilemma and the decision process that led us to write this book. As industrial organization teachers since the start of our academic careers, we have both longrelied on existing textbooks to support our courses. Yet, through the years, our needs became different from the offers of outside suppliers. That is, the 'make' option started to become more tempting than the 'buy' option"--Provided by publisher.

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Editorial Reviews

From the Publisher
Review of previous edition:
"… offers a fully up-to-date treatment of modern industrial organization, including recent work on intellectual property, new forms of price discrimination, competition policy and two-sided markets. Theoretically inclined, clearly written, and mathematically accessible to a wide audience (including advanced undergraduates), it usefully provides motivation through short business-strategy or competition-policy cases. A tour de force and a must-read for students, researchers and practitioners of the field."
Jean Tirole, Toulouse School of Economics and Institute for Advanced Study, Toulouse
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Product Details

  • ISBN-13: 9780521681599
  • Publisher: Cambridge University Press
  • Publication date: 1/31/2010
  • Edition description: New Edition
  • Pages: 724
  • Product dimensions: 7.40 (w) x 9.60 (h) x 1.50 (d)

Meet the Author

Paul Belleflamme is Professor of Economics at the Université Catholique de Louvain, Belgium. He regularly publishes articles in leading economics journals on various topics related to industrial organization, with a special focus on innovation in the digital economy (which is also the main topic of his blog, www.IPdigIT.eu).

Martin Peitz is Professor of Economics at the University of Mannheim, Germany, a director of the Mannheim Centre for Competition and Regulation (MaCCI), Germany, and an academic director of the Centre on Regulation in Europe (CERRE), Belgium. He has widely published in leading economics journals and, with Paul de Bijl, is author of the book Regulation and Entry into Telecommunications Markets (Cambridge University Press, 2003). His research focuses on theoretical industrial organization.

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Table of Contents

Preface; Preface from first edition; Part I. Getting Started: 1. What is 'markets and strategies'?; 2. Firms, consumers and the market; Part II. Market Power: 3. Static imperfect competition; 4. Dynamic aspects of imperfect competition; Part III. Sources of Market Power: 5. Product differentiation; 6. Advertising and related market strategies; 7. Consumer inertia; Part IV. Pricing Strategies and Market Segmentation: 8. Group pricing and personalized pricing; 9. Menu pricing; 10. Intertemporal price discrimination; 11. Bundling; Part V. Product Quality and Information: 12. Asymmetric information, price and advertising signals; 13. Marketing tools for experience goods; Part VI. Theory of Competition Policy: 14. Cartels and tacit collusion; 15. Horizontal mergers; 16. Strategic incumbents and entry; 17. Vertically related markets; Part VII. R&D and Intellectual Property: 18. Innovation and R&D; 19. Intellectual property; Part VIII. Networks, Standards and Systems: 20. Markets with network goods; 21. Strategies for network goods; Part IX. Market Intermediation: 22. Markets with intermediated goods; 23. Information and reputation in intermediated product markets; Appendix A. Game theory; Appendix B. Competition policy; Index.
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