Experimental Industrial Organization

Experimental Industrial Organization (EIO) is a branch of economics that uses experiments to study how businesses compete and make decisions in markets. By simulating market conditions in controlled settings, researchers observe how companies and consumers interact, revealing insights into pricing, product differentiation, and market strategies. This approach helps us understand real-world economic behavior, particularly how firms respond to competition and regulations. EIO bridges theoretical economic models and actual market dynamics, providing valuable data that can inform policy and improve market efficiency.