What is Industrial Organization?

“Industrial organization is concerned with the workings of markets and industries, in particular the ways firms compete with each other” - Luis Cabral

  • We care about all industries and markets
    • Each industry operates in a slightly different way
  • Unit of observation will most commonly be the firm
    • We want to determine the legality of firms actions as it relates to welfare
    • We will develop a measure of economic efficiency
    • We’ll apply simple game theory when needed