Industrial Organization: Contemporary Theory and Empirical Applications (Paperback, 5, Revised)

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

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iv Contents

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 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