This book covers the main topics that students need to learn in a course on Industrial Organization. It reviews the classic models and important empirical evidence related to the field. However, it will differ from prior textbooks in two ways. First, this book incorporates contributions from behavioral economics and neuroeconomics, providing the reader with a richer understanding of consumer preferences and the motivation for many of the business practices we see today. The book discusses how firms exploit consumers who are prone to making mistakes and who suffer from cognitive dissonance, attention lapses, and bounded rationality, for example and will help explain why firms invest in persuasive advertising, offer 30-day free trials, offer money-back guarantees, and engage in other observed phenomena that cannot be explained by the traditional approaches to industrial organization.

A second difference is that this book achieves a balance between textbooks that emphasize formal modeling and those that emphasize the history of the field, empirical evidence, case studies, and policy analysis. This text puts more emphasis on the micro-foundations (i.e., consumer and producer theory), classic game theoretic models, and recent contributions from behavioral economics that are pertinent to industrial organization. Each topic will begin with a discussion of relevant theory and models and will also include a discussion of concrete examples, empirical evidence, and evidence from case studies. This will provide students with a deeper understanding of firm and consumer behavior, of the factors that influence market structure and economic performance, and of policy issues involving imperfectly competitive markets. The book is intended to be a textbook for graduate students, MBAs and upper-level undergraduates and will use examples, graphical analysis, algebra, and simple calculus to explain important ideas and theories in industrial organization.

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The fourth edition of this acclaimed text is a rich resource for undergraduate and graduate courses in industrial organization, applied game theory, and management strategy. It incorporates game theory into industry analysis by studying the behavior of successful and failing firms as well as the structure-conduct-performance of particular industries. Chapters address a wide variety of issues concerning industry structure, policy towards business, and the strategic innovations and blunders of individual firms. New coverage of professional sports, soft drinks, distilled spirits, and cigarettes complements revised and updated chapters on airline services, retail and commercial banking, health insurance, motion pictures, and brewing. The book includes firm case studies of General Motors, Microsoft, Schlitz, and TiVo.

The fourth edition of this acclaimed text is a rich resource for undergraduate and graduate courses in industrial organization, applied game theory, and management strategy. It incorporates game theory into industry analysis by studying the behavior of successful and failing firms as well as the structure-conduct-performance of particular industries. Chapters address a wide variety of issues concerning industry structure, policy towards business, and the strategic innovations and blunders of individual firms. New coverage of professional sports, soft drinks, distilled spirits, and cigarettes complements revised and updated chapters on airline services, retail and commercial banking, health insurance, motion pictures, and brewing. The book includes firm case studies of General Motors, Microsoft, Schlitz, and TiVo.

This book covers the main topics that students need to learn in a course on Industrial Organization. It reviews the classic models and important empirical evidence related to the field. However, it will differ from prior textbooks in two ways. First, this book incorporates contributions from behavioral economics and neuroeconomics, providing the reader with a richer understanding of consumer preferences and the motivation for many of the business practices we see today. The book discusses how firms exploit consumers who are prone to making mistakes and who suffer from cognitive dissonance, attention lapses, and bounded rationality, for example and will help explain why firms invest in persuasive advertising, offer 30-day free trials, offer money-back guarantees, and engage in other observed phenomena that cannot be explained by the traditional approaches to industrial organization. A second difference is that this book achieves a balance between textbooks that emphasize formal modeling and those that emphasize the history of the field, empirical evidence, case studies, and policy analysis. This text puts more emphasis on the micro-foundations (i.e., consumer and producer theory), classic game theoretic models, and recent contributions from behavioral economics that are pertinent to industrial organization. Each topic will begin with a discussion of relevant theory and models and will also include a discussion of concrete examples, empirical evidence, and evidence from case studies. This will provide students with a deeper understanding of firm and consumer behavior, of the factors that influence market structure and economic performance, and of policy issues involving imperfectly competitive markets. The book is intended to be a textbook for graduate students, MBAs and upper-level undergraduates and will use examples, graphical analysis, algebra, and simple calculus to explain important ideas and theories in industrial organization.

This Handbook presents insights from the expanding field of behavioral economics. The unique collective volume integrates behavioral concepts into the study of industrial organization to enhance understanding and interest in the subject. The Handbook of Behavioral Industrial Organization explores numerous critical topics including relative thinking, salience, shrouded attributes, overconfidence, status quo bias, identity and motivated reasoning (including cognitive dissonance and confirmation bias). Each of these behavioral concepts is linked to industrial organization and considers multiple industries in order to present a well-rounded and composite approach. Additional chapters focus on industry issues such as the sports and gambling industries, neuroeconomic studies of brands and advertising, and behavioral antitrust law. Throughout the Handbook authors use a variety of research methods such as literature surveys, experimental and econometric research, and theoretical modelling to promote accessibility to a wide audience. Researchers, academics and economists in the fields of behavioral economics, industrial organization, regulation and consumer psychology will find this book stimulating and useful. Contributors include: O.H. Azar, J.P. Berkowitz, J.V. Butler, Y. Cao, S.M. Chowdhury, D. Coates, C.A. Depken, R. Eisenhuth, X. Gabaix, J.M. Gandar, F. Herweg, C. Horton Tremblay, B.R. Humphreys, D.R. Just, D. Laibson, E. Lukinova, S. Martin, A.A. Mazooz, D. Muller, D. Murphy, M. Myagkov, A. Neuhierl, E. Schroeder, D.F. Stone, V.J. Tremblay, D.E. Waldman, P. Weinschenk, W. Wilson, D.H. Wood