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Instructor’sManualfor
IndustrialOrganizationTheoryandApplications
byOzShy
TheMITPress
Cambridge,MassachusettsLondon,England
Copyrightoc1995–2004OzShy.Allrightsreserved.
ThemanualwastypesetbytheauthorusingtheTEX2εdocumentpreparationsoftwarebyLeslieLamport(aspecialversionofDonaldKnuth’sTEXprogram)duringthemonthsfromSeptember1995toNovember1995whileIwasvisitingtheEconomicsDepartmentoftheUniversityofMichigan.Allthe?guresarealsodrawninTEXusingsoftwarecalledTEXcaddevelopedbyGeorgHorn,whichcanbedownloadedfromvariousmainframes.
Version1.0[Draft20],(1995):Preparedforthe?rstprintingofthe?rsteditionbkman21.tex?rstdrafttobepostedontheWeb(2000/07/07)
(paralleltothe5thPrintingofthebook)v.24(2004/04/14):6.1.d,6.1.e
Thisversion:bkman24.tex2004/04/1417:36
Contents
TotheInstructorv
2BasicConceptsinNoncooperativeGameTheory1
3Technology,ProductionCost,andDemand7
4PerfectCompetition9
5TheMonopoly11
6MarketsforHomogeneousProducts17
7MarketsforDiferentiatedProducts25
8Concentration,Mergers,andEntryBarriers29
9ResearchandDevelopment33
10TheEconomicsofCompatibilityandStandards35
11Advertising37
12Quality,Durability,andWarranties39
13PricingTactics:Two-PartTarifandPeak-LoadPricing43
14MarketingTactics:Bundling,Upgrading,andDealerships45
15Management,Compensation,andRegulation49
16PriceDispersionandSearchTheory51
17MiscellaneousIndustries53
TotheInstructor
BeforepIanningthecourse,IurgetheinstructortoreadcarefuIIythePrefaceofthebookthatsuggestsdiferentwaysoforganizingcoursesfordiferentIeveIsofstudentsandaIsoprovidesaIistofcaIcuIus-freetopics.
ThegoaIsofthismanuaIare:
?Toprovidetheins
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