Industrial Organization: Theory and Practice blends a rigorous theoretical introduction to industrial organization with empirical data, real-world applications and case studies. The book also supports students with a range of problems and exercises, and definitions of key terms and concepts. This balanced approach, which enables students to apply theoretical tools, has earned this book its ranking as one of the leading undergraduate texts in its field.

For the fifth edition, relevant data, tables, empirical examples and case studies have been updated to reflect current trends and topics, in the most complete reorganization since the second edition. Further changes include:

  • all public policy topics have been placed in the last section, making it simpler to use for courses that emphasize theory or public policy;
  • an entirely new chapter on international trade and industrial organization;
  • a new chapter on mergers;
  • a separate section on antitrust;
  • a companion website with PowerPoint slides and other supplements.

This comprehensive book bridges the gap between economic theory and real-world case studies in an accessible, logical manner, making it the ideal undergraduate text for courses on industrial organization.

part I|125 pages

The Basics of Industrial Organization

chapter Chapter 1|10 pages


chapter Chapter 2|36 pages

The Firm and Its Costs

chapter Chapter 3|27 pages

Competition and Monopoly

chapter Chapter 4|31 pages

Market Structure

chapter Chapter 5|17 pages


part II|85 pages

Foundational Models of Industrial Organization

chapter Chapter 6|23 pages

Game Theory

A Framework for Understanding Oligopolistic Behavior

chapter Chapter 7|36 pages

The Development of Theory

chapter Chapter 8|23 pages

Monopoly Practices

part III|306 pages

Models of Conduct and Performance

chapter Chapter 9|39 pages

Price Discrimination

chapter Chapter 10|35 pages

Product Differentiation

chapter Chapter 11|32 pages


chapter Chapter 12|34 pages

Vertical Integration and Vertical Relationships

chapter Chapter 13|38 pages


The Great Prisoner’s Dilemma

chapter Chapter 14|36 pages

Oligopoly Behavior

Entry and Pricing to Deter Entry

chapter Chapter 15|46 pages

Oligopoly Behavior

Entry and Nonpricing Strategies to Deter Entry

chapter Chapter 16|42 pages

Technological Change and Research and Development

part IV|157 pages

Public Policy and Globalization Issues

chapter Chapter 17|19 pages


The Laws and Policy Toward Market Power

chapter Chapter 18|21 pages



chapter Chapter 19|19 pages



chapter Chapter 20|16 pages


Price Discrimination

chapter Chapter 21|21 pages


Public Policy Toward Vertical Restraints of Trade and Group Boycotts

chapter Chapter 22|24 pages

International Economics and Industrial Organization

chapter Chapter 23|31 pages

Regulation and Deregulation