The New Industrial Organization

The New Industrial Organization (NIO) is a concept in economics that studies how industries operate and how firms within those industries interact. It combines insights from game theory, which analyzes strategic decision-making, with real-world market structures. NIO focuses on understanding how firms compete, set prices, and innovate, considering factors like market power and consumer behavior. This approach helps explain various business strategies and the impact of government policies on competition, ultimately guiding better economic outcomes and regulatory decisions.