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The Nature of Industry


Headline: Microsoft Puts Halt to Intuit Merger

I.

Introduction

II.

Market Structure

A.

Firm Size

B.

Industry Concentration

1.

Measures of Industry Concentration

2.

The Concentration of U.S. Industry

3.

Limitations of Concentration Measures

1.

Global Markets

2.

National, Regional, and Local Markets

3.

Industry Definitions and Product Classes

C.

Technology

D.

Demand and Market Conditions

E.

Potential for Entry

III.

Conduct

A.

Pricing Behavior

B.

Integration and Merger Activity

1.

Vertical Integration

2.

Horizontal Integration

3.

Congl omerate Mergers

C.

Research and Development

D.

Advertising

IV.

Performance

A.

Profits

B.

Social Welfare

V.

The Structure-Conduct-Performance Paradigm

A.

The Causal View

B.

The Feedback Critique

C.

Relation to the Five Forces Framework

VI.

Overview of the Remainder of the Book

A.

Perfect Competition

B.

Monopoly

C.

Monopolistic Competition

D.

Oligopoly

VII.

Answering the Headline

VIII.

Summary

IX.

Key Terms and Concepts

X.

Conceptual and Computational Questions

XI.

Problems and Applications

XII.

Case-Based Exercises

XIII.

Selected Readings











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