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Preface | |
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The Basics of Industrial Organization | |
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Introduction | |
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Two Approaches to the Study of Industrial Organization | |
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Static versus Dynamic Models | |
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Theory and Empiricism | |
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Government and Industrial Organization | |
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The Global Economy and Industrial Organization | |
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General Approach of This Book | |
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Summary | |
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The Firm and Its Costs | |
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The Neoclassical Firm | |
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The Theory of the Firm | |
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The Structure of Modern Firms | |
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The Profit-Maximizing Output Level | |
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Cost Concepts: Single-Product Firms | |
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Cost Concepts: Multiproduct Firms | |
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Summary | |
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Competition and Monopoly | |
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The Economics of Perfect Competition | |
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Introduction to Welfare Economics | |
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The Economics of Monopoly | |
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Welfare Comparison | |
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Present Value and Discounting | |
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Antitrust Policy Toward Monopolization | |
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Summary | |
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Market Structure | |
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Concentration in Individual Markets | |
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Entry and Exit | |
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Mergers | |
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Summary | |
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Monopoly Practices | |
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Dominant-Firm Price Leadership Model | |
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Contestable Markets: A Check on Market Power? | |
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Network Economics | |
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Summary | |
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Market Power and Performance: The Empirical Evidence | |
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Structure-Conduct-Performance | |
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Statistical Tools Used to Test the SCP Paradigm | |
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Measurement Issues | |
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Measures of Market Structure | |
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Early Structure-Conduct-Performance Studies | |
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Econometric Studies | |
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Effects of Other Elements of Market Power on Profits | |
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Conceptual Problems with SCP Studies | |
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Prices and Concentration | |
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An Alternative Approach: Sunk Costs and Market Concentration | |
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The New Empirical Industrial Organization | |
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Summary | |
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Modern Industrial Organization: Game Theory and Strategic Behavior | |
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Game Theory: A Framework for Understanding Oligopolistic Behavior | |
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What Is Game Theory? | |
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Simple Zero-Sum Games | |
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The Information Structure of Games | |
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Prisoner's Dilemma Games | |
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Repeated Games | |
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Games of Mixed Strategies | |
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Sequential Games | |
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Summary | |
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The Development of Oligopoly Theory | |
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Models Based on Quantity Determination | |
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The Stackelberg Model | |
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The Bertrand Model | |
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Summary | |
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Collusion: The Great Prisoner's Dilemma | |
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The Prisoner's Dilemma Revisited | |
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Another Strategy for Maintaining Effective Collusion: Trigger Price Strategies | |
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Collusive Agreements as Viewed by One Firm in a Cartel | |
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Factors Affecting the Ease or Difficulty of Effective Collusion | |
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Antitrust Policy Toward Collusion | |
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Summary | |
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Cartels in Action | |
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Attempted Methods of Achieving Effective Collusion | |
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How Successful Are the Solutions? | |
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Summary | |
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Oligopoly Behavior: Entry and Pricing to Deter Entry | |
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Limit Pricing | |
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Predatory Pricing | |
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Summary | |
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Details of the Kreps and Wilson Predatory Pricing Model | |
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Oligopoly Behavior: Entry and Nonpricing Strategies to Deter Entry | |
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Excess Capacity | |
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Raising Rivals' Costs | |
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Learning by Doing | |
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Product Proliferation | |
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Empirical Evidence on the Use of Price and Nonprice Strategies to Deter Entry | |
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Summary | |
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Product Proliferation Revisited | |
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Business Practices | |
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Product Differentiation and Advertising | |
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Forms of Product Differentiation | |
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Theoretical Analysis of Product Differentiation | |
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The Social Benefits and Costs of Advertising | |
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Advertising and Market Structure | |
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Advertising as a Barrier to Entry | |
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Strategic Advantages of Heavily Advertised Brands | |
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Product Differentiation and Increased Competition | |
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Empirical Evidence | |
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Summary | |
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Technological Change and Research and Development | |
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Schumpeter and the Process of "Creative Destruction" | |
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The Process of Technological Change | |
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The Relationship Between Market Structure, Firm Size, and Technological Advance | |
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The Impact of Firm Size | |
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Empirical Evidence | |
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The Economics of the Patent System | |
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Patents, Intellectual Property Rights, and the Law | |
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Summary | |
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Game Theory and Patent Races | |
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Price Discrimination | |
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Types of Price Discrimination | |
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Two-Part Tariffs, Tying, and Bundling | |
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Distribution Effects of Price Discrimination | |
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Effect on Competition | |
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Antitrust: Price Discrimination and the Robinson-Patman Act | |
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Summary | |
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The Welfare Implications of Price Discrimination with Nonlinear Demand | |
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Vertical Integration and Vertical Relationships | |
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Vertical Relationships as a Solution to Economic Problems | |
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Alternative Methods of Achieving Joint Profit Maximization | |
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The Competitive Effects of Vertical Relationships | |
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Antitrust: Public Policy Toward Vertical Restraints of Trade and Group Boycotts | |
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Summary | |
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The Problem of Input Substitution | |
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Regulation and Deregulation | |
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The Rationale for Regulation: Traditional Public Utility Regulation | |
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The Workings of American Regulation | |
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Efficiency Problems Associated with Rate of Return Regulation | |
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The Spread of Regulation into Other Markets | |
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The Movement from Regulation to Deregulation | |
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Summary | |
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Glossary | |
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Answers to Odd-Numbered Problems | |
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Index | |
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Credits | |