Industrial Organization Theory

Industrial Organization Theory studies how businesses operate within markets, focusing on how market structures, competition, and regulation influence their behavior and performance. It examines factors like market concentration, pricing strategies, product differentiation, and barriers to entry, helping us understand why industries behave the way they do. The goal is to analyze and predict how firms interact, how competitive the market is, and how policy changes can promote efficiencies and consumer benefits. Essentially, it provides insights into the strategic decisions of companies and the overall functioning of industries from an economic perspective.