The Theory of Industrial Organization

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MIT Press, Jan 1, 1988 - Business & Economics - 479 pages
12 Reviews

The Theory of Industrial Organization is the first primary text to treat the newindustrial organization at the advanced-undergraduate and graduate level. Rigorously analytical andfilled with exercises coded to indicate level of difficulty, it provides a unified and moderntreatment of the field with accessible models that are simplified to highlight robust economic ideaswhile working at an intuitive level.To aid students at different levels, each chapter is dividedinto a main text and supplementary section containing more advanced material. Each chapter openswith elementary models and builds on this base to incorporate current research in a coherentsynthesis.Tirole begins with a background discussion of the theory of the firm. In part I hedevelops the modern theory of monopoly, addressing single product and multi product pricing, staticand intertemporal price discrimination, quality choice, reputation, and vertical restraints.In partII, Tirole takes up strategic interaction between firms, starting with a novel treatment of theBertrand-Cournot interdependent pricing problem. He studies how capacity constraints, repeatedinteraction, product positioning, advertising, and asymmetric information affect competition ortacit collusion. He then develops topics having to do with long term competition, including barriersto entry, contestability, exit, and research and development. He concludes with a "game theoryuser's manual" and a section of review exercises.Jean Tirole is a Professor of Economics atMIT

  

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User Review - Flag as inappropriate

It's chapter 11 is used both in supply chain and corporate finance as the reference.
It provides very important intuition about bayesiam Eq., Nash Eq., and other stuff in contract theory.
For
example it contains all the information for pooling, separating and semi separating equilibrium, which was an advanced topic in both contract theory and corporate finance. 

User Review - Flag as inappropriate

Great book

Contents

The Theory of the Firm
15
The ProfitMaximization Hypothesis
35
5
44
The PrincipalAgent
51
Introduction
63
Product Selection Quality
95
Price Discrimination
133
Vertical Control
169
Introduction
205
Answers and Hints
234
Answers and Hints
271
Price Competition
277
Entry Accommodation and Exit
305
A Users
423
Index
473
Copyright

Answers and Hints
198

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About the author (1988)

Jean Tirole is Scientific Director at the Institut d'Economie Industrielle, Researcher at CERAS (of the Ecole Nationale des Ponts et Chaussees), and Visiting Professor at the Massachusetts Institute of Technology.

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