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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 [[market (economics)|market]]s. Industrial organization adds real-world complications to the [[perfect competition|perfectly competitive]] model, complications such as [[transaction cost]]s,<ref>• [[Ronald H. Coase|R. H. Coase]], 1937. "[[The Nature of the Firm]]", ''Economica'', N.S., 4(16), pp. [https://web.archive.org/web/20120113105151/http://www.sonoma.edu/users/e/eyler/426/coase1.pdf 386–405].<br/> • _____, 1988. "The Nature of the Firm: Influence", ''Journal of Law, Economics, & Organization'', 4(1), pp. [https://www.jstor.org/pss/765013 33]–47. Reprinted in ''The Nature of the Firm: Origins, Evolution, and Development'', 1993, O. E. Williamson and S, G. Winter, ed., pp. [https://books.google.com/books?id=VXIDgGjLHVgC&pg=PA61 61–74].<br/> • _____, 1991. "[https://www.nobelprize.org/nobel_prizes/economics/laureates/1991/coase-lecture.html The Institutional Structure of Production]", Nobel Lecture, reprinted in 1992, ''American Economic Review'', 82(4), pp. [https://www.jstor.org/pss/2117340 713]–719.<br/> • [[Oliver E. Williamson]], 1981. "The Economics of Organization: The Transaction Cost Approach", ''American Journal of Sociology'', 87(3), pp. [https://web.archive.org/web/20141018232235/http://glenn.osu.edu/faculty/brown/home/Org%20Theory/Readings/Williamson1981.pdf 548–577].<br/> • _____, 2009. "[http://nobelprize.org/nobel_prizes/economics/laureates/2009/williamson_lecture.pdf Transaction Cost Economics: The Natural Progression]", Nobel Lecture. Reprinted in 2010, ''American Economic Review'', 100(3), pp. 673–90.</ref> limited [[information economics|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 (economics)|competition]]<ref>George J. Stigler, [1987] 2008. "competition", ''The New Palgrave Dictionary of Economics'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_C000261&edition= Abstract.]</ref> and [[monopoly]],<ref>• [[Luigi Zingales]], 2008. "corporate governance", ''[[The New Palgrave Dictionary of Economics]]'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_C000370&edition=current&q=governance%20&topicid=&result_number=1 Abstract.]<br/> • Oliver E. Williamson, 2002. "The Theory of the Firm as Governance Structure: From Choice to Contract", ''Journal of Economic Perspectives'', 16(3), pp. [http://pubs.aeaweb.org/doi/pdfplus/10.1257/089533002760278776 171–195.]<br/> • [[Frederic M. Scherer]] and David Ross, 1990. ''Industrial Market Structure and Economic Performance'', 3rd ed. [https://ssrn.com/abstract=1496716 Description] and 1st ed. review [https://www.jstor.org/pss/3003013 extract].<br/> • Dennis W. Carlton and [[Jeffrey M. Perloff]], 2004. ''Modern Industrial Organization'', 4th edition, pp. 2–3. [http://www.lavoisier.fr/notice/frSWORK23A3RW32O.html Description.]</ref> including from government actions. |
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 [[market (economics)|market]]s. Industrial organization adds real-world complications to the [[perfect competition|perfectly competitive]] model, complications such as [[transaction cost]]s,<ref>• [[Ronald H. Coase|R. H. Coase]], 1937. "[[The Nature of the Firm]]", ''Economica'', N.S., 4(16), pp. [https://web.archive.org/web/20120113105151/http://www.sonoma.edu/users/e/eyler/426/coase1.pdf 386–405].<br/> • _____, 1988. "The Nature of the Firm: Influence", ''Journal of Law, Economics, & Organization'', 4(1), pp. [https://www.jstor.org/pss/765013 33]–47. Reprinted in ''The Nature of the Firm: Origins, Evolution, and Development'', 1993, O. E. Williamson and S, G. Winter, ed., pp. [https://books.google.com/books?id=VXIDgGjLHVgC&pg=PA61 61–74].<br/> • _____, 1991. "[https://www.nobelprize.org/nobel_prizes/economics/laureates/1991/coase-lecture.html The Institutional Structure of Production]", Nobel Lecture, reprinted in 1992, ''American Economic Review'', 82(4), pp. [https://www.jstor.org/pss/2117340 713]–719.<br/> • [[Oliver E. Williamson]], 1981. "The Economics of Organization: The Transaction Cost Approach", ''American Journal of Sociology'', 87(3), pp. [https://web.archive.org/web/20141018232235/http://glenn.osu.edu/faculty/brown/home/Org%20Theory/Readings/Williamson1981.pdf 548–577].<br/> • _____, 2009. "[http://nobelprize.org/nobel_prizes/economics/laureates/2009/williamson_lecture.pdf Transaction Cost Economics: The Natural Progression]", Nobel Lecture. Reprinted in 2010, ''American Economic Review'', 100(3), pp. 673–90.</ref> limited [[information economics|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 (economics)|competition]]<ref>George J. Stigler, [1987] 2008. "competition", ''The New Palgrave Dictionary of Economics'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_C000261&edition= Abstract.]</ref> and [[monopoly]],<ref>• [[Luigi Zingales]], 2008. "corporate governance", ''[[The New Palgrave Dictionary of Economics]]'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_C000370&edition=current&q=governance%20&topicid=&result_number=1 Abstract.]<br/> • Oliver E. Williamson, 2002. "The Theory of the Firm as Governance Structure: From Choice to Contract", ''Journal of Economic Perspectives'', 16(3), pp. [http://pubs.aeaweb.org/doi/pdfplus/10.1257/089533002760278776 171–195.]<br/> • [[Frederic M. Scherer]] and David Ross, 1990. ''Industrial Market Structure and Economic Performance'', 3rd ed. [https://ssrn.com/abstract=1496716 Description] and 1st ed. review [https://www.jstor.org/pss/3003013 extract].<br/> • Dennis W. Carlton and [[Jeffrey M. Perloff]], 2004. ''Modern Industrial Organization'', 4th edition, pp. 2–3. [http://www.lavoisier.fr/notice/frSWORK23A3RW32O.html Description.]</ref> including from government actions. |
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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 ratio|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.<ref>• Frederic M. Scherer and David Ross, 1990. ''Industrial Market Structure and Economic Performance'', 3rd ed. [https://ssrn.com/abstract=1496716 Description] and 1st ed. review [https://www.jstor.org/pss/3003013 extract].<br/> • Dennis W. Carlton and Jeffery M. Perloff, 2004. "Modern Industrial Organization, Overview", ch. 5, ''Handbook of Industrial Organization'', Elsevier, v. 1, pp. 259–327. {{Cite book | doi=10.1016/S1573-448X(89)01008-3| chapter=Chapter 5 Noncooperative game theory for industrial organization: An introduction and overview| title=Handbook of Industrial Organization Volume 1| volume=1| pages=259–327 |
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 ratio|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.<ref>• Frederic M. Scherer and David Ross, 1990. ''Industrial Market Structure and Economic Performance'', 3rd ed. [https://ssrn.com/abstract=1496716 Description] and 1st ed. review [https://www.jstor.org/pss/3003013 extract].<br/> • Dennis W. Carlton and Jeffery M. Perloff, 2004. "Modern Industrial Organization, Overview", ch. 5, ''Handbook of Industrial Organization'', Elsevier, v. 1, pp. 259–327. {{Cite book | doi=10.1016/S1573-448X(89)01008-3| chapter=Chapter 5 Noncooperative game theory for industrial organization: An introduction and overview| title=Handbook of Industrial Organization Volume 1| volume=1| pages=259–327| year=1989| last1=Fudenberg| first1=Drew| last2=Tirole| first2=Jean| isbn=9780444704344| s2cid=154265880}}<br/> • [[Carl Shapiro]], 1989. "The Theory of Business Strategy", ''RAND Journal of Economics'', 20(1), pp. [https://www.jstor.org/pss/2555656 125]–137.<br/> • Kyle Bagwell and Asher Wolinsky (2002). "Game theory and Industrial Organization", ch. 49, ''Handbook of Game Theory with Economic Applications'', v. 3, pp. 1851–1895 {{Cite book | doi=10.1016/S1574-0005(02)03012-6| chapter=Chapter 49 Game theory and industrial organization| title=Handbook of Game Theory with Economic Applications Volume 3| volume=3| pages=1851–1895| year=2002| last1=Bagwell| first1=Kyle| last2=Wolinsky| first2=Asher| isbn=9780444894281}}<br/> • [[Martin Shubik]], 1987. ''A Game-Theoretic Approach to Political Economy'', Part II. [[MIT Press]]. [http://mitpress.mit.edu/catalog/item/default.asp?tid=5086&ttype=2 Description]. {{webarchive |url=https://web.archive.org/web/20110503182202/https://ssrn.com/abstract=1496716 |date=May 3, 2011 }}</ref> A third aspect is oriented to [[public policy]] related to [[economic regulation]],<ref>Richard Schmalensee and Robert Willig, eds., 1989. ''Handbook of Industrial Organization'', Elsevier, v. 2, Part 5, Government Intervention in the Marketplace, ch. 22–26, abstract [http://www.sciencedirect.com/science/handbooks/1573448X/2 links.]</ref> [[antitrust law]],<ref>• [[Richard A. Posner]], 2001. ''Antitrust Law'', 2nd ed. University of Chicago Press. [https://books.google.com/books?id=vV3i8XCzc8cC&dq==false&pg=PR5 Preview.]<br/> • D. L. Rubinfeld, 2001. "Antitrust Policy", ''[[International Encyclopedia of the Social & Behavioral Sciences]]'', pp. 553–560. |
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{{Cite book |url=https://books.google.com/books?id=vV3i8XCzc8cC&q=%3Dfalse&pg=PR5 |title=Antitrust Law, Second Edition |access-date=April 10, 2017 |archive-url=https://web.archive.org/web/20170107191058/https://books.google.com/books?hl=en&lr=&id=vV3i8XCzc8cC&oi=fnd&pg=PR5&dq==false |archive-date=January 7, 2017 |url-status=bot: unknown |isbn=9780226675787 |last1=Posner |first1=Richard A. |date=2009-04-22 }}</ref> and, more generally, the economic governance of law in defining property rights, enforcing contracts, and providing organizational [[infrastructure]].<ref>• [[Avinash K. Dixit]], 2008. "economic governance", ''The New Palgrave Dictionary of Economics'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_E000260&edition=current&q= Abstract.]<br/> • [[Oliver E. Williamson]], 1996. ''The Mechanisms of Governance'', "Prologue", pp. [https://books.google.com/books?id=meERBVysP6YC&pg=PA3 3]–20.</ref><ref>• [[George J. Stigler]], 1983. ''The Organization of Industry'', University of Chicago Press. Description and contents [https://archive.today/20111107161440/http://www.press.uchicago.edu/presssite/metadata.epl?isbn=9780226774329 links] and [https://books.google.com/books?id=j6SOJv8OeHAC&pg=PA1=gbs_atb preview.]<br/> • [[Richard Schmalensee]], 1988. "Industrial Economics: An Overview", ''Economic Journal'', 98(392), pp. [https://www.jstor.org/pss/2233907 643]–681. Working paper [http://dspace.mit.edu/bitstream/handle/1721.1/48172/industrialeconom00schm.pdf?s. link].<br/> • ''Handbook of Industrial Organization'', Elsevier: |
{{Cite book |url=https://books.google.com/books?id=vV3i8XCzc8cC&q=%3Dfalse&pg=PR5 |title=Antitrust Law, Second Edition |access-date=April 10, 2017 |archive-url=https://web.archive.org/web/20170107191058/https://books.google.com/books?hl=en&lr=&id=vV3i8XCzc8cC&oi=fnd&pg=PR5&dq==false |archive-date=January 7, 2017 |url-status=bot: unknown |isbn=9780226675787 |last1=Posner |first1=Richard A. |date=2009-04-22 }}</ref> and, more generally, the economic governance of law in defining property rights, enforcing contracts, and providing organizational [[infrastructure]].<ref>• [[Avinash K. Dixit]], 2008. "economic governance", ''The New Palgrave Dictionary of Economics'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_E000260&edition=current&q= Abstract.]<br/> • [[Oliver E. Williamson]], 1996. ''The Mechanisms of Governance'', "Prologue", pp. [https://books.google.com/books?id=meERBVysP6YC&pg=PA3 3]–20.</ref><ref>• [[George J. Stigler]], 1983. ''The Organization of Industry'', University of Chicago Press. Description and contents [https://archive.today/20111107161440/http://www.press.uchicago.edu/presssite/metadata.epl?isbn=9780226774329 links] and [https://books.google.com/books?id=j6SOJv8OeHAC&pg=PA1=gbs_atb preview.]<br/> • [[Richard Schmalensee]], 1988. "Industrial Economics: An Overview", ''Economic Journal'', 98(392), pp. [https://www.jstor.org/pss/2233907 643]–681. Working paper [http://dspace.mit.edu/bitstream/handle/1721.1/48172/industrialeconom00schm.pdf?s. link].<br/> • ''Handbook of Industrial Organization'', Elsevier: |
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:Richard Schmalensee and Robert Willig, ed., 1989. v. 1. Links to [http://www.elsevier.com/wps/find/bookdescription.cws_home/601119/description#description description & contents] {{Webarchive|url=https://web.archive.org/web/20121002032608/http://www.elsevier.com/wps/find/bookdescription.cws_home/601119/description#description |date=2012-10-02 }} & (partial) chapter [http://www.sciencedirect.com/science/handbooks/1573448X/1 outlines.] |
:Richard Schmalensee and Robert Willig, ed., 1989. v. 1. Links to [http://www.elsevier.com/wps/find/bookdescription.cws_home/601119/description#description description & contents] {{Webarchive|url=https://web.archive.org/web/20121002032608/http://www.elsevier.com/wps/find/bookdescription.cws_home/601119/description#description |date=2012-10-02 }} & (partial) chapter [http://www.sciencedirect.com/science/handbooks/1573448X/1 outlines.] |
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The development of industrial organization as a separate field owes much to [[Edward Chamberlin]],<ref>• Edward Hastings Chamberlin, 1933. ''The Theory of [[Monopolistic Competition]]: A Re-orientation of the Theory of Value'', 1965, 8th ed. Harvard University Press.<br/> • R. Rothschild, 1987. "The Theory of Monopolistic Competition: E.H. Chamberlin's Influence on Industrial Organisation Theory over Sixty Years", ''Journal of Economic Studies'', 14(1), pp. 34–54. [http://www.emeraldinsight.com/journals.htm?articleid=1709405 Abstract].<br/> • William L. Baldwin, 2007. "Edward Hastings Chamberlin", in ''Pioneers of Industrial Organization'', H. W. de Jong, W. G. Shepherd, ed., pp. [https://books.google.com/books?id=TpfrPPOFWUIC&pg=PA199=false 199–].</ref> [[Joan Robinson]], [[Edward S. Mason]],<ref>Edward S. Mason, 1939. "Price and Production Policies of Large-Scale Enterprise", ''American Economic Review'', 29(1, Supplement), pp. [https://www.jstor.org/pss/1806955 61]–74.<br/> • _____, 1949. "The Current Status of the Monopoly Problem in the United States", ''Harvard Law Review'', 62(8), pp. [https://www.jstor.org/pss/1336466 1265]–1285.<br/> • _____, 1957. ''Economic Concentration and the Monopoly Problem'', Harvard University Press. Review [https://www.jstor.org/pss/1234950 extract].<br/> • William G. Shepherd, 2007. "Edward S. Mason", in ''Pioneers of Industrial Organization'', H. W. de Jong, W. G. Shepherd, ed.</ref> [[John Maurice Clark|J. M. Clark]],<ref>J.M. Clark, 1940. [https://www.jstor.org/pss/1807048 Toward a Concept of Workable Competition]. ''American Economic Review'', Vol. 30, No. 2, Part 1, Jun., pp. 241–256 |
The development of industrial organization as a separate field owes much to [[Edward Chamberlin]],<ref>• Edward Hastings Chamberlin, 1933. ''The Theory of [[Monopolistic Competition]]: A Re-orientation of the Theory of Value'', 1965, 8th ed. Harvard University Press.<br/> • R. Rothschild, 1987. "The Theory of Monopolistic Competition: E.H. Chamberlin's Influence on Industrial Organisation Theory over Sixty Years", ''Journal of Economic Studies'', 14(1), pp. 34–54. [http://www.emeraldinsight.com/journals.htm?articleid=1709405 Abstract].<br/> • William L. Baldwin, 2007. "Edward Hastings Chamberlin", in ''Pioneers of Industrial Organization'', H. W. de Jong, W. G. Shepherd, ed., pp. [https://books.google.com/books?id=TpfrPPOFWUIC&pg=PA199=false 199–].</ref> [[Joan Robinson]], [[Edward S. Mason]],<ref>Edward S. Mason, 1939. "Price and Production Policies of Large-Scale Enterprise", ''American Economic Review'', 29(1, Supplement), pp. [https://www.jstor.org/pss/1806955 61]–74.<br/> • _____, 1949. "The Current Status of the Monopoly Problem in the United States", ''Harvard Law Review'', 62(8), pp. [https://www.jstor.org/pss/1336466 1265]–1285.<br/> • _____, 1957. ''Economic Concentration and the Monopoly Problem'', Harvard University Press. Review [https://www.jstor.org/pss/1234950 extract].<br/> • William G. Shepherd, 2007. "Edward S. Mason", in ''Pioneers of Industrial Organization'', H. W. de Jong, W. G. Shepherd, ed.</ref> [[John Maurice Clark|J. M. Clark]],<ref>J.M. Clark, 1940. [https://www.jstor.org/pss/1807048 Toward a Concept of Workable Competition]. ''American Economic Review'', Vol. 30, No. 2, Part 1, Jun., pp. 241–256 |
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<br/> • William L. Baldwin, 2007. "John Maurice Clark" in ''Pioneers of Industrial Organization'', H. W. de Jong, W. G. Shepherd, ed., pp. [https://books.google.com/books?id=TpfrPPOFWUIC&pg=PA183 183–186].</ref> [[Joe S. Bain]]<ref>• Joe S. Bain, 1956. ''Barriers to New Competition: Their Character and Consequences in Manufacturing'', Harvard University Press. Review extracts [https://www.jstor.org/discover/10.2307/1811245?uid=3739936&uid=2&uid=4&uid=3739256&sid=21101828169287][https://www.jstor.org/discover/10.2307/2097589?uid=3739936&uid=2&uid=4&uid=3739256&sid=21101828169287].<br/> • _____, 1959, 2nd ed., 1968. ''Industrial Organization: A Treatise'', John Wiley.<br/> • [[Richard E. Caves]], 2007. "Joe S. Bain", in ''Pioneers of Industrial Organization'', H. W. de Jong, W. G. Shepherd, ed., pp. [https://books.google.com/books?id=TpfrPPOFWUIC&pg=PA224 224–231].</ref> and [[Paolo Sylos Labini]], among others.<ref name="Grether">E. T. Grether, 1970. "Industrial Organization: Past History and Future Problems", ''American Economic Review'', 60(2), pp. [https://www.jstor.org/pss/1815790 83]–89.</ref><ref>Oliver E. Williamson, ed., 1990. ''Industrial Organization'', Edward Elgar. [http://www.e-elgar.co.uk/Bookentry_DESCRIPTION.lasso?id=593 Description] {{Webarchive|url=https://web.archive.org/web/20110722004854/http://www.e-elgar.co.uk/Bookentry_DESCRIPTION.lasso?id=593 |date=2011-07-22 }} and article [http://www.e-elgar.co.uk/Bookentry_contents.lasso?id=593 list.] {{Webarchive|url=https://web.archive.org/web/20141024124906/http://www.e-elgar.co.uk/Bookentry_contents.lasso?id=593 |date=2014-10-24 }}23 articles, dating from 1937 to 1987.</ref> |
<br/> • William L. Baldwin, 2007. "John Maurice Clark" in ''Pioneers of Industrial Organization'', H. W. de Jong, W. G. Shepherd, ed., pp. [https://books.google.com/books?id=TpfrPPOFWUIC&pg=PA183 183–186].</ref> [[Joe S. Bain]]<ref>• Joe S. Bain, 1956. ''Barriers to New Competition: Their Character and Consequences in Manufacturing'', Harvard University Press. Review extracts [https://www.jstor.org/discover/10.2307/1811245?uid=3739936&uid=2&uid=4&uid=3739256&sid=21101828169287][https://www.jstor.org/discover/10.2307/2097589?uid=3739936&uid=2&uid=4&uid=3739256&sid=21101828169287].<br /> • _____, 1959, 2nd ed., 1968. ''Industrial Organization: A Treatise'', John Wiley.<br /> • [[Richard E. Caves]], 2007. "Joe S. Bain", in ''Pioneers of Industrial Organization'', H. W. de Jong, W. G. Shepherd, ed., pp. [https://books.google.com/books?id=TpfrPPOFWUIC&pg=PA224 224–231].</ref> and [[Paolo Sylos Labini]], among others.<ref name="Grether">E. T. Grether, 1970. "Industrial Organization: Past History and Future Problems", ''American Economic Review'', 60(2), pp. [https://www.jstor.org/pss/1815790 83]–89.</ref><ref>Oliver E. Williamson, ed., 1990. ''Industrial Organization'', Edward Elgar. [http://www.e-elgar.co.uk/Bookentry_DESCRIPTION.lasso?id=593 Description] {{Webarchive|url=https://web.archive.org/web/20110722004854/http://www.e-elgar.co.uk/Bookentry_DESCRIPTION.lasso?id=593 |date=2011-07-22 }} and article [http://www.e-elgar.co.uk/Bookentry_contents.lasso?id=593 list.] {{Webarchive|url=https://web.archive.org/web/20141024124906/http://www.e-elgar.co.uk/Bookentry_contents.lasso?id=593 |date=2014-10-24 }}23 articles, dating from 1937 to 1987.</ref> |
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==Subareas== |
==Subareas== |
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A 2009 book ''Pioneers of Industrial Organization'' traces the development of the field from [[Adam Smith]] to recent times and includes dozens of short biographies of major figures in Europe and North America who contributed to the growth and development of the discipline.<ref name="“bazar1">Henry W. de Jong and William G. Shepherd, ed., 2007. ''Pioneers of Industrial Organization.'' Cheltenham, UK: Elgar. Description and content [http://www.e-elgar.com/Bookentry_DESCRIPTION.lasso?id=3125 links] and [https://books.google.com/books?id=TpfrPPOFWUIC&pg=PA3=gbs_atb preview]. {{webarchive |url=https://web.archive.org/web/20110807190244/http://www.e-elgar.com/Bookentry_DESCRIPTION.lasso?id=3125 |date=August 7, 2011 }}</ref> |
A 2009 book ''Pioneers of Industrial Organization'' traces the development of the field from [[Adam Smith]] to recent times and includes dozens of short biographies of major figures in Europe and North America who contributed to the growth and development of the discipline.<ref name="“bazar1">Henry W. de Jong and William G. Shepherd, ed., 2007. ''Pioneers of Industrial Organization.'' Cheltenham, UK: Elgar. Description and content [http://www.e-elgar.com/Bookentry_DESCRIPTION.lasso?id=3125 links] and [https://books.google.com/books?id=TpfrPPOFWUIC&pg=PA3=gbs_atb preview]. {{webarchive |url=https://web.archive.org/web/20110807190244/http://www.e-elgar.com/Bookentry_DESCRIPTION.lasso?id=3125 |date=August 7, 2011 }}</ref> |
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Other reviews by publication year and earliest available cited works those in 1970/1937,<ref name="Grether"/> 1972/1933,<ref>James W. McKie, 1972. "Industrial Organization: Boxing the Compass", ch. 1 in [[Victor R. Fuchs|V. R. Fuchs]], ed., ''Policy Issues and Research Opportunities in Industrial Organization'', NBER, pp. [https://www.nber.org/chapters/c7615.pdf 1-15].</ref> 1974,<ref>[[Almarin Phillips]] and Rodney E. Stevenson, 1974. "The Historical Development of Industrial Organization", ''History of Political Economy'', 6(3), pp. 324–342. In Papers from the First Conference of the History of Economics Society. [http://hope.dukejournals.org/content/6/3/324.citation Citation].</ref> 1987/1937-1956 (3 cites), |
Other reviews by publication year and earliest available cited works those in 1970/1937,<ref name="Grether"/> 1972/1933,<ref>James W. McKie, 1972. "Industrial Organization: Boxing the Compass", ch. 1 in [[Victor R. Fuchs|V. R. Fuchs]], ed., ''Policy Issues and Research Opportunities in Industrial Organization'', NBER, pp. [https://www.nber.org/chapters/c7615.pdf 1-15].</ref> 1974,<ref>[[Almarin Phillips]] and Rodney E. Stevenson, 1974. "The Historical Development of Industrial Organization", ''History of Political Economy'', 6(3), pp. 324–342. In Papers from the First Conference of the History of Economics Society. [http://hope.dukejournals.org/content/6/3/324.citation Citation].</ref> 1987/1937-1956 (3 cites), 1968–9 (7 cites),<ref>Timothy F. Bresnahan and Richard Schmalensee, 1987. "The Empirical Renaissance in Industrial Economics: An Overview", ''Journal of Industrial Economics'', 35(4), pp. [https://www.jstor.org/pss/2098578 371]–378.</ref> 2009/c. 1900,<ref name="bazar2">Lefteris Tsoulfidis, 2009. "Between Competition and Monopoly", ''Competing Schools of Economic Thought'', ch. 9, pp. [https://books.google.com/books?id=8L2Zoui099UC&pg=PA213=onepage 213]–42. [https://archive.today/20130203011622/http://www.springerlink.com/content/978-3-540-92692-4 Springer]</ref> and 2010/1951.<ref>Liran Einav and [[Jonathan Levin (economist)|Jonathan Levin]], 2010. "Empirical Industrial Organization: A Progress Report", ''Journal of Economic Perspectives'', 24(2), pp. [http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.24.2.145 145–162.]</ref> |
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==See also== |
==See also== |
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*[[Competition policy]] |
*[[Competition policy]] |
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*[[Cournot competition]] |
*[[Cournot competition]] |
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*[[ |
*[[Input–output model]] |
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*[[List of publications in economics#Industrial organization|Important publications in industrial organization]] |
*[[List of publications in economics#Industrial organization|Important publications in industrial organization]] |
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*[[ |
*[[Structure–conduct–performance paradigm]] |
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* Shy, Oz, 1995. ''Industrial Organization: Theory and Applications''. [https://web.archive.org/web/20071227163628/http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=4262 Description] and chapter-preview [https://books.google.com/books?id=tr4CjJ5LlRcC&pg=PR7=gbs_atb links.] MIT Press. |
* Shy, Oz, 1995. ''Industrial Organization: Theory and Applications''. [https://web.archive.org/web/20071227163628/http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=4262 Description] and chapter-preview [https://books.google.com/books?id=tr4CjJ5LlRcC&pg=PR7=gbs_atb links.] MIT Press. |
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* Vives, Xavier, 2001. ''Oligopoly Pricing: Old Ideas and New Tools''. MIT Press. [https://web.archive.org/web/20071016152749/http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=8556 Description] and scroll to chapter-preview [https://books.google.com/books/mitpress?id=le-OE5HMLY8C&printsec=frontcover&cd=1&source=gbs_ViewAPI#v=onepage&q&f=false links.] |
* Vives, Xavier, 2001. ''Oligopoly Pricing: Old Ideas and New Tools''. MIT Press. [https://web.archive.org/web/20071016152749/http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=8556 Description] and scroll to chapter-preview [https://books.google.com/books/mitpress?id=le-OE5HMLY8C&printsec=frontcover&cd=1&source=gbs_ViewAPI#v=onepage&q&f=false links.] |
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* Jeffrey Church & Roger Ware, 2005. "Industrial Organization: A Strategic Approach", (aka [http://homepages.ucalgary.ca/~jrchurch/page4/page4.html IOSA])”, Free Textbook |
* Jeffrey Church & Roger Ware, 2005. "Industrial Organization: A Strategic Approach", (aka [http://homepages.ucalgary.ca/~jrchurch/page4/page4.html IOSA] {{Webarchive|url=https://web.archive.org/web/20161208233721/http://homepages.ucalgary.ca/~jrchurch/page4/page4.html |date=2016-12-08 }})”, Free Textbook |
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* Nicolas Boccard, 2010. "Industrial Organization, a Contract Based approach (aka [http://iocb.info/ IOCB] {{Webarchive|url=https://web.archive.org/web/20150801174648/http://iocb.info/ |date=2015-08-01 }})”, Open Source Textbook |
* Nicolas Boccard, 2010. "Industrial Organization, a Contract Based approach (aka [http://iocb.info/ IOCB] {{Webarchive|url=https://web.archive.org/web/20150801174648/http://iocb.info/ |date=2015-08-01 }})”, Open Source Textbook |
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Latest revision as of 10:43, 25 November 2023
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Major types
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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. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs,[1] 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[2] and monopoly,[3] 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.[4] A third aspect is oriented to public policy related to economic regulation,[5] antitrust law,[6] and, more generally, the economic governance of law in defining property rights, enforcing contracts, and providing organizational infrastructure.[7][8]
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.[9]
The development of industrial organization as a separate field owes much to Edward Chamberlin,[10] Joan Robinson, Edward S. Mason,[11] J. M. Clark,[12] Joe S. Bain[13] and Paolo Sylos Labini, among others.[14][15]
Subareas
[edit]The Journal of Economic Literature (JEL) classification codes are one way of representing the range of economics subjects and subareas. There, Industrial Organization, one of 20 primary categories, has 9 secondary categories, each with multiple tertiary categories.[16] The secondary categories are listed below with corresponding available article-preview links of The New Palgrave Dictionary of Economics Online and footnotes to their respective JEL-tertiary categories and associated New-Palgrave links.
- JEL: L1 – Market Structure, Firm Strategy, and Market Performance[17]
- JEL: L2 – Firm Objectives, Organization, and Behavior[18]
- JEL: L3 – Non-profit organizations and Public enterprise[19]
- JEL: L4 – Antitrust Issues and Policies[20]
- JEL: L5 – Regulation and Industrial policy[21]
- JEL: L6 – Industry Studies: Manufacturing[22]
- JEL: L7 – Industry Studies: Primary Products and Construction[23]
- JEL: L8 – Industry Studies: Services[24]
- JEL: L9 – Industry Studies: Transportation and Utilities[25]
Market structures
[edit]The common market structures studied in this field are: perfect competition, monopolistic competition, duopoly, oligopoly, oligopsony, monopoly and monopsony.
Areas of study
[edit]Industrial organization investigates the outcomes of these market structures in environments with
- Price discrimination
- Product differentiation
- Durable goods
- Experience goods
- Collusion
- Signalling, such as warranties and advertising.
- Mergers and acquisitions
- Entry and Exit
History of the field
[edit]A 2009 book Pioneers of Industrial Organization traces the development of the field from Adam Smith to recent times and includes dozens of short biographies of major figures in Europe and North America who contributed to the growth and development of the discipline.[26]
Other reviews by publication year and earliest available cited works those in 1970/1937,[14] 1972/1933,[27] 1974,[28] 1987/1937-1956 (3 cites), 1968–9 (7 cites),[29] 2009/c. 1900,[30] and 2010/1951.[31]
See also
[edit]Notes
[edit]- ^ • R. H. Coase, 1937. "The Nature of the Firm", Economica, N.S., 4(16), pp. 386–405.
• _____, 1988. "The Nature of the Firm: Influence", Journal of Law, Economics, & Organization, 4(1), pp. 33–47. Reprinted in The Nature of the Firm: Origins, Evolution, and Development, 1993, O. E. Williamson and S, G. Winter, ed., pp. 61–74.
• _____, 1991. "The Institutional Structure of Production", Nobel Lecture, reprinted in 1992, American Economic Review, 82(4), pp. 713–719.
• Oliver E. Williamson, 1981. "The Economics of Organization: The Transaction Cost Approach", American Journal of Sociology, 87(3), pp. 548–577.
• _____, 2009. "Transaction Cost Economics: The Natural Progression", Nobel Lecture. Reprinted in 2010, American Economic Review, 100(3), pp. 673–90. - ^ George J. Stigler, [1987] 2008. "competition", The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
- ^ • Luigi Zingales, 2008. "corporate governance", The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
• Oliver E. Williamson, 2002. "The Theory of the Firm as Governance Structure: From Choice to Contract", Journal of Economic Perspectives, 16(3), pp. 171–195.
• Frederic M. Scherer and David Ross, 1990. Industrial Market Structure and Economic Performance, 3rd ed. Description and 1st ed. review extract.
• Dennis W. Carlton and Jeffrey M. Perloff, 2004. Modern Industrial Organization, 4th edition, pp. 2–3. Description. - ^ • Frederic M. Scherer and David Ross, 1990. Industrial Market Structure and Economic Performance, 3rd ed. Description and 1st ed. review extract.
• Dennis W. Carlton and Jeffery M. Perloff, 2004. "Modern Industrial Organization, Overview", ch. 5, Handbook of Industrial Organization, Elsevier, v. 1, pp. 259–327. Fudenberg, Drew; Tirole, Jean (1989). "Chapter 5 Noncooperative game theory for industrial organization: An introduction and overview". Handbook of Industrial Organization Volume 1. Vol. 1. pp. 259–327. doi:10.1016/S1573-448X(89)01008-3. ISBN 9780444704344. S2CID 154265880.
• Carl Shapiro, 1989. "The Theory of Business Strategy", RAND Journal of Economics, 20(1), pp. 125–137.
• Kyle Bagwell and Asher Wolinsky (2002). "Game theory and Industrial Organization", ch. 49, Handbook of Game Theory with Economic Applications, v. 3, pp. 1851–1895 Bagwell, Kyle; Wolinsky, Asher (2002). "Chapter 49 Game theory and industrial organization". Handbook of Game Theory with Economic Applications Volume 3. Vol. 3. pp. 1851–1895. doi:10.1016/S1574-0005(02)03012-6. ISBN 9780444894281.
• Martin Shubik, 1987. A Game-Theoretic Approach to Political Economy, Part II. MIT Press. Description. Archived May 3, 2011, at the Wayback Machine - ^ Richard Schmalensee and Robert Willig, eds., 1989. Handbook of Industrial Organization, Elsevier, v. 2, Part 5, Government Intervention in the Marketplace, ch. 22–26, abstract links.
- ^ • Richard A. Posner, 2001. Antitrust Law, 2nd ed. University of Chicago Press. Preview.
• D. L. Rubinfeld, 2001. "Antitrust Policy", International Encyclopedia of the Social & Behavioral Sciences, pp. 553–560. Posner, Richard A. (2009-04-22). Antitrust Law, Second Edition. ISBN 9780226675787. Archived from the original on January 7, 2017. Retrieved April 10, 2017.{{cite book}}: CS1 maint: bot: original URL status unknown (link) - ^ • Avinash K. Dixit, 2008. "economic governance", The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
• Oliver E. Williamson, 1996. The Mechanisms of Governance, "Prologue", pp. 3–20. - ^ • George J. Stigler, 1983. The Organization of Industry, University of Chicago Press. Description and contents links and preview.
• Richard Schmalensee, 1988. "Industrial Economics: An Overview", Economic Journal, 98(392), pp. 643–681. Working paper link.
• Handbook of Industrial Organization, Elsevier:- Richard Schmalensee and Robert Willig, ed., 1989. v. 1. Links to description & contents Archived 2012-10-02 at the Wayback Machine & (partial) chapter outlines.
- _____, ed., 1989. v. 2. Links to description & contents Archived 2012-10-02 at the Wayback Machine and chapter outlines.
- Mark Armstrong and Robert Porter, ed., 2007. v. 3. Links to description, chapter-content descriptions Archived 2012-10-02 at the Wayback Machine
- ^ Exemplified in such advanced textbooks as Jean Tirole, 1988, The Theory of Industrial Organization, MIT Press, description and chapter-preview links.
- ^ • Edward Hastings Chamberlin, 1933. The Theory of Monopolistic Competition: A Re-orientation of the Theory of Value, 1965, 8th ed. Harvard University Press.
• R. Rothschild, 1987. "The Theory of Monopolistic Competition: E.H. Chamberlin's Influence on Industrial Organisation Theory over Sixty Years", Journal of Economic Studies, 14(1), pp. 34–54. Abstract.
• William L. Baldwin, 2007. "Edward Hastings Chamberlin", in Pioneers of Industrial Organization, H. W. de Jong, W. G. Shepherd, ed., pp. 199–. - ^ Edward S. Mason, 1939. "Price and Production Policies of Large-Scale Enterprise", American Economic Review, 29(1, Supplement), pp. 61–74.
• _____, 1949. "The Current Status of the Monopoly Problem in the United States", Harvard Law Review, 62(8), pp. 1265–1285.
• _____, 1957. Economic Concentration and the Monopoly Problem, Harvard University Press. Review extract.
• William G. Shepherd, 2007. "Edward S. Mason", in Pioneers of Industrial Organization, H. W. de Jong, W. G. Shepherd, ed. - ^ J.M. Clark, 1940. Toward a Concept of Workable Competition. American Economic Review, Vol. 30, No. 2, Part 1, Jun., pp. 241–256
• William L. Baldwin, 2007. "John Maurice Clark" in Pioneers of Industrial Organization, H. W. de Jong, W. G. Shepherd, ed., pp. 183–186. - ^ • Joe S. Bain, 1956. Barriers to New Competition: Their Character and Consequences in Manufacturing, Harvard University Press. Review extracts [1][2].
• _____, 1959, 2nd ed., 1968. Industrial Organization: A Treatise, John Wiley.
• Richard E. Caves, 2007. "Joe S. Bain", in Pioneers of Industrial Organization, H. W. de Jong, W. G. Shepherd, ed., pp. 224–231. - ^ a b E. T. Grether, 1970. "Industrial Organization: Past History and Future Problems", American Economic Review, 60(2), pp. 83–89.
- ^ Oliver E. Williamson, ed., 1990. Industrial Organization, Edward Elgar. Description Archived 2011-07-22 at the Wayback Machine and article list. Archived 2014-10-24 at the Wayback Machine23 articles, dating from 1937 to 1987.
- ^ A complete list of the JEL Industrial Organization codes is at JEL classification codes#Industrial organization JEL: L Subcategories.
- ^ JEL: L10 – General
JEL: L11 – Production, Pricing, and Market structure; Size Distribution of Firms
JEL: L12 – Monopoly; Monopolization Strategies
JEL: L13 – Oligopoly and Other Imperfect Markets
JEL: L14 – Transactional Relationships; Contracts and Reputation; Networks
JEL: L15 – Information and Product Quality; Standardization and Compatibility
JEL: L16 – Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
JEL: L17 – Open Source Products and Markets - ^ JEL: L20 – General
JEL: L21 – Business Objectives of the Firm
JEL: L22 – Firm Organization and Market Structure
JEL: L23 – Organization of Production
JEL: L24 – Contracting Out; Joint Ventures; Technology licensing
JEL: L25 – Firm Performance: Size, Diversification, and Scope
JEL: L26 – Entrepreneurship - ^ JEL: L31 – Nonprofit Institutions; NGOs
JEL: L32 – Public enterprises; Public-Private Enterprises
JEL: L33 – Comparison of Public and Private Enterprises; Privatization; Contracting out - ^ JEL: L40 – General
JEL: L41 – Monopolization; Horizontal Anticompetitive Practices
JEL: L42 – Vertical Restraints; Resale Price Maintenance; Quantity Discounts
JEL: L43 – Legal Monopolies and Regulation or Deregulation
JEL: L44 – Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations - ^ JEL: L51 – Economics of Regulation
JEL: L52 – Industrial Policy; Sectoral Planning Methods
JEL: L53] – Enterprise Policy - ^ JEL: L61 – Metals and Metal Products; Cement; Glass; Ceramics
JEL: L62 – Automobiles; Other Transportation Equipment
JEL: L63 – Microelectronics; Computers; Communications Equipment
JEL: L64 – Other Machinery; Business Equipment; Armaments
JEL: L65 – Chemicals; Rubber; Drugs; Biotechnology
JEL: L66 – Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
JEL: L67 – Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather
JEL: L68 – Appliances; Other Consumer Durables - ^ JEL: L71 – Mining, Extraction, and Refining: Hydrocarbon Fuels
JEL: L72 – Mining, Extraction, and Refining: Other Nonrenewable Resources
JEL: L73 – Forest Products
JEL: L74 – Construction
JEL: L78 – Government Policy - ^ JEL: L80 – General
JEL: L81 – Retail and Wholesale Trade; e-Commerce
JEL: L82 – Entertainment; Media (Performing Arts, Visual Arts, Broadcasting, Publishing, etc.)
JEL: L83 – Sports; Gambling; Recreation; Tourism
JEL: L84 – Personal, Professional, and Business Services
JEL: L85 – Real Estate Services
JEL: L86 – Information and Internet Services; Computer Software
JEL: L87 – Postal and Delivery Services
JEL: L88 – Government Policy - ^ JEL: L91 – Transportation: General
JEL: L92 – Railroads and Other Surface Transportation
JEL: L93 – Air transportation
JEL: L94 – Electric utilities
JEL: L95 – Gas Utilities; Pipelines; Water Utilities
|JEL: L96 – Telecommunications
JEL: L97 – Utilities: General
JEL: L98 – Government Policy - ^ Henry W. de Jong and William G. Shepherd, ed., 2007. Pioneers of Industrial Organization. Cheltenham, UK: Elgar. Description and content links and preview. Archived August 7, 2011, at the Wayback Machine
- ^ James W. McKie, 1972. "Industrial Organization: Boxing the Compass", ch. 1 in V. R. Fuchs, ed., Policy Issues and Research Opportunities in Industrial Organization, NBER, pp. 1-15.
- ^ Almarin Phillips and Rodney E. Stevenson, 1974. "The Historical Development of Industrial Organization", History of Political Economy, 6(3), pp. 324–342. In Papers from the First Conference of the History of Economics Society. Citation.
- ^ Timothy F. Bresnahan and Richard Schmalensee, 1987. "The Empirical Renaissance in Industrial Economics: An Overview", Journal of Industrial Economics, 35(4), pp. 371–378.
- ^ Lefteris Tsoulfidis, 2009. "Between Competition and Monopoly", Competing Schools of Economic Thought, ch. 9, pp. 213–42. Springer
- ^ Liran Einav and Jonathan Levin, 2010. "Empirical Industrial Organization: A Progress Report", Journal of Economic Perspectives, 24(2), pp. 145–162.
References
[edit]- Tirole, Jean (1988). The Theory of Industrial Organization, MIT press.
- Belleflamme, Paul & Martin Peitz, 2010. Industrial Organization: Markets and Strategies. Cambridge University Press. Summary and Resources
- Cabral, Luís M. B., 2000. Introduction to Industrial Organization. MIT Press. Links to Description and chapter-preview links.
- Shepherd, William, 1985. The Economics of Industrial Organization, Prentice-Hall. ISBN 0-13-231481-9
- Shy, Oz, 1995. Industrial Organization: Theory and Applications. Description and chapter-preview links. MIT Press.
- Vives, Xavier, 2001. Oligopoly Pricing: Old Ideas and New Tools. MIT Press. Description and scroll to chapter-preview links.
- Jeffrey Church & Roger Ware, 2005. "Industrial Organization: A Strategic Approach", (aka IOSA Archived 2016-12-08 at the Wayback Machine)”, Free Textbook
- Nicolas Boccard, 2010. "Industrial Organization, a Contract Based approach (aka IOCB Archived 2015-08-01 at the Wayback Machine)”, Open Source Textbook
Journals
[edit]- The RAND Journal of Economics
- International Journal of the Economics of Business and issue preview links
- International Journal of Industrial Organization and issue-preview links
- Journal of Industrial Economics, Aims and Scope, and issue-preview links.
- Journal of Law, Economics, and Organization and issue-preview links.
- Review of Industrial Organization
External links
[edit]Quotations related to Industrial organization at Wikiquote
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