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The Theory of Industrial Organization (Hardcover)
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The Theory of Industrial Organization (Hardcover)
Series: The MIT Press
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The Theory of Industrial Organization is the first primary text to
treat the new industrial organization at the advanced-undergraduate
and graduate level. Rigorously analytical and filled with exercises
coded to indicate level of difficulty, it provides a unified and
modern treatment of the field with accessible models that are
simplified to highlight robust economic ideas while working at an
intuitive level. To aid students at different levels, each chapter
is divided into a main text and supplementary section containing
more advanced material. Each chapter opens with elementary models
and builds on this base to incorporate current research in a
coherent synthesis. Tirole begins with a background discussion of
the theory of the firm. In Part I he develops the modern theory of
monopoly, addressing single product and multi product pricing,
static and intertemporal price discrimination, quality choice,
reputation, and vertical restraints. In Part II, Tirole takes up
strategic interaction between firms, starting with a novel
treatment of the Bertrand-Cournot interdependent pricing problem.
He studies how capacity constraints, repeated interaction, product
positioning, advertising, and asymmetric information affect
competition or tacit collusion. He then develops topics having to
do with long term competition, including barriers to entry,
contestability, exit, and research and development. He concludes
with a "game theory user's manual" and a section of review
exercises. Important Notice: The digital edition of this book is
missing some of the images found in the physical edition.
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