This is Volume 3 of the Handbook of Industrial Organization series (HIO). Volumes 1 & 2 published simultaneously in 1989 and many of the chapters were widely cited and appeared on graduate reading lists. Since the first volumes published, the field of industrial organization has continued to evolve and this volume fills the gaps. While the first two volumes of HIO contain much more discussion of the theoretical literature than of the empirical literature, it was representative of the field at that time. Since then, the empirical literature has flourished, while the theoretical literature has continued to grow, and this new volume reflects that change of emphasis. Thie volume is an excellent reference and teaching supplement for industrial organization or industrial economics, the microeconomics field that focuses on business behavior and its implications for both market structures and processes, and for related public policies.

Key Features

*Part of the renowned Handbooks in Economics series *Chapters are contributed by some of the leading experts in their fields *A source, reference and teaching supplement for industrial organizations or industrial economists


Professionals, consultants, academics and graduate students in the field of industrial organization.

Table of Contents

Chapter 1. Recent Developments in the Theory of Regulation (Mark Armstrong and David Sappington) This chapter can be viewed as a successor to the chapter by David Baron in the original HIO, and to a lesser extent those by Ronald Braeutigam and by Roger Noll. Relative to the Baron chapter, this chapter focuses more on practical regulatory policies and on multi-firm regulation. Chapter 2. The Economic Analysis of Advertising (Kyle Bagwell) This chapter discusses advertising, which received a brief treatment only in passing in the first two HIO volumes. More generally, this chapter fills a larger gap, as we know of no thorough modern survey of this large literature. Chapter 3. Empirical Models of Entry and Market Structure (Steven Berry and Peter Reiss) This chapter describes empirical models of entry and exit that infer aspects of firms’ competitive environment from the number of competitors in a market. The focus is on within industry comparisons, say for example on differences across separate geographical markets for the same product. Chapter 4. A Framework for Applied Dynamic Analysis in IO (Ulrich Doraszelski and Ariel Pakes) As theoretical dynamic models increase in complexity, in order to reflect a wide variety of possible economic environments, it has become increasingly difficult to obtain analytic characterizations of equilibrium outcomes. This chapter surveys methods for deriving numerical solutions in such games. With increases in computer processing speed and memory, it has become possible to analyze a richer set of environments, and to revisit issues such as mergers, where long run effects on entry and investment may be paramount. Applications of these numerical solution methods have just begun to be introduced in the empirical analysis of dynamic oligopoly games, and we believe that some important advances


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© 2007
North Holland
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About the editors

Mark Armstrong

Affiliations and Expertise

University College, London, UK

Robert Porter

Affiliations and Expertise

Northwestern University, Evanston, IL, USA


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