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Industrial Organization: Contemporary Theory and Empirical Applications, 5th Edition




Industrial Organization: Contemporary Theory and Empirical Applications, 5th Edition

Lynne Pepall, Dan Richards, George Norman

ISBN: 978-1-118-54550-8 December 2013 736 Pages


Pepall's Industrial Organization: Contemporary Theory and Empirical Applications, 5th Edition offers an accessible text in which topics are organized in a manner that motivates and facilitates progression from one chapter to the next. It serves as a complete, but concise, introduction to modern industrial economics.

The text uniquely uses the tools of game theory, information economics, contracting issues, and practical examples to examine multiple facets of industrial organization. The fifth edition is more broadly accessible, balancing the tension between making modern industrial analysis accessible while also presenting the formal abstract modeling that gives the analysis its power. The more overtly mathematical content is presented in the Contemporary Industrial Organization text (aimed at the top tier universities) while this Fifth Edition will less mathematical (aimed at a wider range of four-year colleges and state universities.

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About the Authors v

Preface to the Fifth Edition vii

Part One Foundations 1

1 Industrial Organization: What, How, and Why 2

2 Basic Microeconomics 19

3 Market Structure and Market Power 47

4 Technology and Cost 64

Part Two Monopoly Power in Theory and Practice 91

5 Price Discrimination and Monopoly: Linear Pricing 92

6 Price Discrimination and Monopoly: Nonlinear Pricing 119

7 Product Variety and Quality Under Monopoly 142

8 Commodity Bundling and Tie-In Sales 173

Part Three Strategic Interaction and Basic Oligopoly Models 213

9 Static Games and Cournot Competition 214

10 Oligopolistic Price Competition 242

11 Dynamic Games and First and Second Movers 264

Part Four Anticompetitive Behavior and Antitrust Policy 283

12 Entry Deterrence and Predation 284

13 Predatory Conduct: More Recent Developments 316

14 Price Fixing, Repeated Games, and Antitrust Policy 349

Part Five Contractual Relations Between Firms 385

15 Horizontal Mergers 386

16 Vertical and Conglomerate Mergers 427

17 Vertical Price Restraints 459

18 Non-Price Vertical Restraints 486

Part Six Non-Price Competition 515

19 Advertising, Market Power, and Information 516

20 Research and Development 548

21 Patents and Patent Policy 578

Part Seven Networks, Auctions, and Strategic Policy Commitment 611

22 Network Issues 612

23 Auctions: Basic Theory and Applications 637

24 Strategic Commitments and International Trade 661

Answers to Practice Problems 677

Index 695

  • Empirical Applications in each chapter doubles the amount of empirical content from the previous edition.
  • Flexible Pedagogical Approach:  Content and material can be covered using either calculus or a non-calculus approach.
  • New chapter on strategic interaction as it applies to international competition and the scope this introduces for strategic trade policies.
  • The two chapters on price-fixing and anti-trust policy vis-à-vis collusion (Chapter 14 and 15 in 4th edition) are streamlined and combined into one chapter.
  • The two chapters on advertising (Chapter 20 and 21 in 4th edition) are streamlined and combined into one chapter. 
  • Provides a comprehensive guide to industrial organization in the imperfect market conditions of the real world.
  • The most accessible text conveying the vitality and relevance of industrial organization—both in theory and practice.
  • Discussion of a single empirical study in each chapter.
  • End-of-chapter summaries, problems, references, in addition to many appendices, all integrated within the text.