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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 | |