Industrial Organization: Markets and Strategies provides an up-to-date account of modern industrial organization that blends theory with real-world applications. Written in a clear and accessible style, it acquaints the reader with the most important models for understanding strategies chosen by firms with market power and shows how such firms adapt to different market environments. It covers a wide range of topics including recent developments on product bundling, branding strategies, restrictions in vertical supply relationships, intellectual property protection, and two-sided markets, to name just a few. Models are presented in detail and the main results are summarized as lessons. Formal theory is complemented throughout by real-world cases that show students how it applies to actual organizational settings. The book is accompanied by a website containing a number of additional resources for lecturers and students, including exercises, answers to review questions, case material and slides.

An innovative graduate textbook that explains modern industrial organization by blending theory with real-world applications.

Part 1. Getting Started 1 What is Markets and strategies? 2 Firms, consumers and the market Part 2. Market Power 3 Static imperfect competition 4 Dynamic aspects of imperfect competition Part 3. Sources of market power 5 Product differentiation 6 Advertising and related marketing strategies 7 Consumer inertia Part 4. Pricing strategies and market segmentation 8 Group pricing and personalized pricing 9 Menu pricing 10 Intertemporal price discrimination 11 Bundling Part 5. Product quality and information 12 Asymmetric information, price and advertising signals 13 Marketing tools for experience goods Part 6. Thoery of competition policy 14 Cartels and tacit collusion 15 Horizontal mergers 16 Strategic incumbents and entry 17 Vertically related markets Part 7. R&D and intellectual property 18 Innovation and R&D 19 Intellectual property Part 8. Networks, standards and systems 20 Markets with network goods 21 Strategies for network goods Part 9. Market intermediation 22 Markets with intermediated goods 23 Information and reputation in intermediated product markets