Thoroughly revised according to classroom feedback, Industrial Organization: Markets and Strategies offers an up-to-date and rigorous presentation of modern industrial organization that blends theory with real-world applications and derives implications for firm strategy and competition policy. This comprehensive textbook acquaints readers with the most important models for understanding strategies chosen by firms with market power and shows how such firms adapt to different market environments. The second edition includes new and revised formal models and case studies. Formal models are presented in detail, and analyses are summarized in 'lessons' which highlight the main insights. Theories are complemented by numerous real-world cases that engage students and lead them to connect theories to real situations. Chapters include review questions, exercises, and suggestions for further reading to enhance the learning experience, and an accompanying website offers additional student exercises, as well as teaching slides.

Updated according to classroom feedback, this comprehensive textbook blends theory and formal models with real-world applications and take-away lessons.

Preface to the second edition Preface from the first edition Part I. Getting Started: 1. What is 'Markets and Strategies'? 2. Firms, consumers and the market Part II. Market Power: 3. Static imperfect competition 4. Dynamic aspects of imperfect competition Part III. Sources of Market Power: 5. Product differentiation 6. Advertising and related market strategies 7. Consumer inertia Part IV. Pricing Strategies and Market Segmentation: 8. Group pricing and personalized pricing 9. Menu pricing 10. Intertemporal price discrimination 11. Bundling Part V. Product Quality and Information: 12. Asymmetric information, price and advertising signals 13. Marketing tools for experience goods Part VI. Theory of Competition Policy: 14. Cartels and tacit collusion 15. Horizontal mergers 16. Strategic incumbents and entry 17. Vertically related markets Part VII. R&D and Intellectual Property: 18. Innovation and R&D 19. Intellectual property Part VIII. Networks, Standards and Systems: 20. Markets with network goods 21. Strategies for network goods Part IX. Market Intermediation: 22. Markets with intermediated goods 23. Information and reputation in intermediated product markets Appendix A. Game theory Appendix B. Competition policy Solutions to end-of-chapter exercises Index