The Theory of Industrial Organization

by Tirole, Jean

• ISBN13: 9780262200714
• ISBN10: 0262200716
• Format: Hardcover
• Copyright: 1988-08-26
• Publisher: The MIT Press

Summary

The Theory of Industrial Organizationis 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. Jean Tirole is a Professor of Economics at MIT

Author Biography

Jean Tirole, the 2014 Nobel Laureate in Economics, is Scientific Director of IDEI (Institut d'Economie Industrielle), Chairman of the Board of TSE (Toulouse School of Economics), and Annual Visiting Professor of Economics at MIT.

Table of Contents

Preface	p. xi
Introduction	p. 1
The Theory of the Firm	p. 15
The Exercise of Monopoly Power
Monopoly	p. 65
Product Selection, Quality, and Advertising	p. 95
Price Discrimination	p. 133
Vertical Control	p. 169
Strategic Interaction
Short-Run Price Competition	p. 209
Dynamic Price Competition and Tacit Collusion	p. 239
Product Differentiation: Price Competition and Non-Price Competition	p. 277
Entry, Accommodation, and Exit	p. 305
Information and Strategic Behavior: Reputation, Limit Pricing, and Predation	p. 361
Research and Development and the Adoption of New Technologies	p. 389
Noncooperative Game Theory: A User's Manual	p. 423
Review Exercises	p. 460
Index	p. 473
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