contains expanded treatments of:
hotelling′s spatial model
oligopoly with quality differentiation
empirical evidence on entry and exit
the analysis of firm structure
presents new discussions of:
the classical view of the Cournot model
strategic substitutability and complementarity
representative consumer models of product differentiation
the Kreps and Scheinkman model with product differentiation
the New Empirical Industrial Organization, Solow residual, and event study approaches to the analysis of market power
deterministic and stochastic models of research and development
With a more cohesive writing style, reduced size, additional invaluable information, and new problems to solve, the second edition of Advanced Industrial Economics is a key text in industrial economics.
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The paperback edition of this book is not available from Blackwell in the US or Canda
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:.
Cournot in his Own Words.
The Classical Oligopoly Theory Formulation.
Comparative Statistics: The Number of Firms.
3. Foundations of Oligopoly Theory II:.
Cournot Duopoly as a Static Game.
Static versus Dynamic? (Nash versus Cournot?).
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.
4. Foundations of Oligopoloy Theory III:.
Vertical Product Differentiation.
The Relation between Models of Horizontal and Vertical Differentiation.
5. Early Empirical Studies of Structure Conduct Performance Relationships:.
Bain and the Critics.
Early Econometric Work.
6. Debates over Interpretation and Specification:.
Market Power versus Efficiency.
Measurement Issues in the Diagnosis of Market Power.
Firm Effects versus Industry Effects.
7. Empirical Studies of Market Performance:.
Avoiding Cost Data I: NEIO.
Avoiding Cost Data II: The Solow Residual.
Price Versus Rate of Return.
The Persistence of Profits.
Not the Last Word.
8. Strategic Behavior: Investment in Entry Deterrence:.
Raising Rivals′ Costs.
Advertising and Limit Pricing.
The Dorfman Steiner Condition and Generalizations.
Advertising as a Signal of Quality.
Welfare Consequences of Advertising.
The Duration of Advertising Effects.
The Advertising Response to Entry.
10. Collusion and Noncooperative Collusion:.
Noncooperative Collusion in a Static Model.
Noncooperative Collusion in Repeated Games.
Empirical Studies of Collusion.
11. Market Structure, Entry, and Exit:.
The Measurement of Seller Concentration.
Entry Conditions and Market Structure.
Product Differentiation as a Barrier to Entry.
Empirical Studies of Market Structure.
Empirical Studies of Entry and Exit.
12. Firm Structure, Mergers, and Joint Ventures:.
Why are There Firms?.
Vertical Mergers and Vertical Foreclosure.
Diversification and Conglomerate Mergers.
The Market for Corporate Control.
Joint Ventures and Equity Interests.
13. Vertical Restraints:.
Incentives to Impose Vertical Restraints.
14. Research and Development:.
Empirical Studies of R & D.
Index of Names.
Index of Subjects.
"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.
As a teaching tool, there is much to admire in the book as well: many of the issues are given a histroical perspective so that students can better appreciate the direction in which both the theory and the empirical work has progressed.
Martin also provides a wealth of material on the book′s website, including an extended discussion of the theory of contestable markets as well as a solutions manual." Times Higher Education Supplement, October 2002