Advanced Industrial Economics
by Stephen Martin
- 2nd Edition
- USA Blackwell Publishers 2002
- xvii, 533 pages; Illustrations: 25 cm.
TABLE OF CONTENTS Preface. 1. Introduction:.
The Scope of the Field.
Theory Versus Empiricism.
Barriers to Entry and the Structure–Conduct–Performance.
A Decade of High Theory.
An Outline of the Book.
2. Foundations of Oligopoly Theory I:.
Introduction.
Cournot in his Own Words.
The Classical Oligopoly Theory Formulation.
Best-Response Functions.
Existence.
Stability.
Comparative Statistics: The Number of Firms.
Limiting Behavior.
Conclusion.
3. Foundations of Oligopoly Theory II:.
Introduction.
Cournot Duopoly as a Static Game.
Static versus Dynamic? (Nash versus Cournot?).
Conjectural Variations.
The Coefficient of Cooperation.
Representative Consumer Models of Product Differentiation.
Cournot with Product Differentiation.
Bertrand with Product Differentiation.
Prices versus Quantities.
Supply Function Oligopoly.
Two-stage Capacity-constrained Competition.
Conclusion.
Problems.
4. Foundations of Oligopoloy Theory III:.
Hotelling.
Beyond Hotelling.
Vertical Product Differentiation.
The Relation between Models of Horizontal and Vertical Differentiation.
Conclusion.
Problems.
5. Early Empirical Studies of Structure–Conduct–Performance Relationships:.
Introduction.
Bain and the Critics.
Early Econometric Work.
Summary.
6. Debates over Interpretation and Specification:.
Introduction.
Market Power versus Efficiency.
Measurement Issues in the Diagnosis of Market Power.
Identification.
Firm Effects versus Industry Effects.
Conclusion.
Problems.
7. Empirical Studies of Market Performance:.
Introduction.
Conjectures.
Time Series.
Avoiding Cost Data I: NEIO.
Avoiding Cost Data II: The Solow Residual.
Validity Checks.
Event Studies.
Price Versus Rate of Return.
The Persistence of Profits.
Not the Last Word.
8. Strategic Behavior: Investment in Entry Deterrence:.
Introduction.
Excess Capacity.
Switching Costs.
Raising Rivals' Costs.
Predatory Pricing.
Limit Pricing.
Advertising and Limit Pricing.
Animal Farm.
"This is an outstanding textbook. It covers practically anything one would ever want to include in a lecture course in Advanced IO, and it does so with the perfect blending of rigorous theory and advanced empirical analysis." Gianni De Fraja, University of York, and CEPR "Stephen Martin's book is a marvellous effort. No other text provides such a comprehensive and updated overview of the literature of modern industrial economics. I wholeheartedly recommend it for graduate courses in the subject or as a reference for any professional economist.... The feature that most distinguishes Advanced Industrial Economics from competitors is the extended treatment of the literature on empirical tests of market structure and performance. This was long overdue, and Martin has to be commended for introducing new generations of students to empirical work int his field.