Industrial Organisation: An Analysis of Competitive Markets

by Lipczynski, John; Wilson, John O. S.

• ISBN13: 9780273646204
• ISBN10: 0273646206
• Format: Paperback
• Copyright: 2001-03-01
• Publisher: Trans-Atlantic Pubns

Table of Contents

Preface	ix
Acknowledgements	xi
1 Industrial organisation: an introduction	1	(13)
1.1 Introduction	1	(1)
1.2 Competition analysis	2	(4)
1.3 Approaches to industrial organisation	6	(5)
1.4 Structure of the book	11	(1)
Key terms	12	(1)
Questions for discussion	12	(1)
Further reading	13	(1)
2 Oligopoly	14	(35)
2.1 Introduction	14	(5)
2.2 Classical models	19	(7)
2.3 Models of mutual interdependence	26	(9)
2.4 Game theory	35	(8)
2.5 Conclusions	43	(1)
Key terms	43	(1)
Case studies	43	(5)
Questions for discussion	48	(1)
Further reading	48	(1)
3 Collusion	49	(54)
3.1 Introduction	49	(1)
3.2 Collusive action and collusive forms	50	(5)
3.3 Collusive institutions	55	(7)
3.4 Economic models of cartels	62	(11)
3.5 Factors encouraging firms to seek cartel solutions	73	(4)
3.6 Market variables conducive to cartel formation	77	(6)
3.7 Pressures on cartel stability	83	(15)
3.8 Conclusions	98	(1)
Key terms	98	(1)
Case studies	99	(3)
Questions for discussion	102	(1)
Further reading	102	(1)
4 Concentration	103	(35)
4.1 Introduction	103	(1)
4.2 Classification of industries	104	(4)
4.3 Measurement of concentration	108	(7)
4.4 Trends in concentration	115	(1)
4.5 Determinants of concentration	116	(17)
4.6 Conclusions	133	(1)
Key terms	133	(1)
Case studies	134	(3)
Questions for discussion	137	(1)
Further reading	137	(1)
5 Barriers to entry	138	(27)
5.1 Introduction	138	(2)
5.2 Classification of entry barriers	140	(1)
5.3 Structural barriers	141	(5)
5.4 Entry-deterring strategies	146	(5)
5.5 Contestable markets	151	(2)
5.6 Market dynamics and entry	153	(1)
5.7 Empirical evidence on entry	154	(3)
5.8 Conclusions	157	(1)
Key terms	158	(1)
Case studies	158	(6)
Questions for discussion	164	(1)
Further reading	164	(1)
6 Market structure and profitability: a review of the empirical evidence	165	(23)
6.1 Introduction	165	(1)
6.2 Measurement of profitability	166	(5)
6.3 The Structure-Conduct-Performance model revisited	171	(1)
6.4 Empirical tests of the SCP approach: a selective review	172	(7)
6.5 Dynamic views of competition	179	(6)
6.6 Conclusions	185	(1)
Key terms	186	(1)
Questions for discussion	186	(1)
Further reading	186	(2)
7 Advertising	188	(36)
7.1 Introduction	188	(1)
7.2 Determinants of advertising expenditures and intensity	189	(4)
7.3 Theory of monopolistic competition	193	(5)
7.4 Information and quality	198	(1)
7.5 Informative and persuasive advertising	199	(5)
7.6 Advertising and the competitive environment	204	(9)
7.7 Advertising and prices	213	(5)
7.8 Conclusions	218	(1)
Key terms	218	(1)
Case studies	218	(5)
Questions for discussion	223	(1)
Further reading	223	(1)
8 Innovation	224	(46)
8.1 Introduction	224	(3)
8.2 Diffusion	227	(6)
8.3 Patents	233	(5)
8.4 The returns to industrial research and development	238	(3)
8.5 Investment in innovation	241	(5)
8.6 Schumpeter, industrial structure and innovation	246	(6)
8.7 Empirical work	252	(7)
8.8 European innovation	259	(4)
8.9 Conclusions	263	(1)
Key terms	263	(1)
Case studies	264	(4)
Questions for discussion	268	(1)
Further reading	269	(1)
9 Vertical relationships	270	(44)
9.1 Introduction	270	(1)
9.2 Vertical integration	271	(8)
9.3 Vertical integration and monopoly power	279	(5)
9.4 Empirical evidence on vertical integration	284	(4)
9.5 Agency and vertical relationships	288	(6)
9.6 Vertical restraints	294	(14)
9.7 Conclusions	308	(1)
Key terms	309	(1)
Case studies	309	(4)
Questions for discussion	313	(1)
Further reading	313	(1)
10 Diversification	314	(33)
10.1 Introduction	314	(2)
10.2 Reasons for diversification	316	(11)
10.3 Corporate coherence	327	(3)
10.4 Focus and deconglomeration	330	(2)
10.5 Empirical evidence	332	(8)
10.6 Conclusions	340	(1)
Key terms	340	(1)
Case studies	340	(5)
Questions for discussion	345	(1)
Further reading	345	(2)
11 Competition policy	347	(32)
11.1 Introduction	347	(1)
11.2 A critique of monopolies	348	(7)
11.3 Competition policy: theoretical framework	355	(3)
11.4 Competition policy: legal framework	358	(13)
11.5 Conclusions	371	(1)
Key terms	372	(1)
Case studies	372	(6)
Questions for discussion	378	(1)
Further reading	378	(1)
12 Privatisation and regulation	379	(33)
12.1 Introduction	379	(2)
12.2 Natural monopoly and public ownership	381	(4)
12.3 Privatisation	385	(5)
12.4 Regulation of utilities	390	(9)
12.5 Franchising and competitive tendering	399	(7)
12.6 Conclusions	406	(1)
Key terms	406	(1)
Case studies	406	(5)
Questions for discussion	411	(1)
Further reading	411	(1)
Appendix Regression analysis	412	(10)
Glossary	422	(9)
Bibliography	431	(30)
Index	461