Industrial Organization.
Fall semester 2009-2010
Prof. Xavier Martinez-Giralt
I. Introduction
Boone, J., 2008, A new way to measure competition, Economic Journal, 118: 1245-1261.
CPB, 2000, Publishers caught in the Web?, CPB working paper No 119.
CPB, 2006, Measuring competition in The Netherlands, CPB Memorandum.
Encaoua, D., and A. Jacquemin, 1980, Degree of Monopoly, Indices of Concentration and Threat of Entry, International Economic Review, 21: 87-105.
Geroski, P.A., 1998, Thinking creatively about markets, International Journal of Industrial Organization, 16: 677-695.
Hennesy, D.A. and H. Lapan, 2007, When different market concentration indices agree, Economics Letters, 95: 234-240.
Langenfeld, J., J.T. Tomlin, D.A. Weiskopf, and G. Giozov, 2008, Hicks-Marshall conditions and defining antitrust markets for intermediate goods, mimeo.
Lerner, A.P., 1934, The Concept of Monopoly and the Measurement of Monopoly Power, Review of Economic Studies, 1: 157-175.
Martin, S., 2001, Notes on the Rose-Panzar statistic, mimeo.
II. Static Oligopoly Pricing
• General References
Friedman, J.W., 1977, Oligopoly and the Theory of Games, Amsterdam, North-Holland, chapters 2,3,4.
Gabszewicz, J.J. and J.F. Thisse, 1986, Spatial competition and the Location of firms, in Location Theory. Fundamentals of Pure and Applied Economics, vol. 5, edited by J. Lesourne and H. Sonnenschein, Chur, Harwood Academic Publishers, pp. 1-71.
Greenhut, M.L., G. Norman and C.-S. Hung, 1987, The Economics of Imperfect Competition. A Spatial Approach, Cambridge, Cambridge University Press, chapters 2,3,5.
Martin, S., 2002, Advanced Industrial Economics, Oxford, Blackwell.
Mas Colell, A., M.D. Whinston and J.R. Green, 1995, Microeconomic Theory, New York, Oxford University Press, chapter 12c.
Shapiro, C., 1989, Theories of Oligopoly Behavior, in Handbook of Industrial Organization, edited by R. Schmalensee and R.D. Willig, Amsterdam, North-Holland, pp. 329-414.
Tirole, J., 1988, The Theory of Industrial Organization, Cambridge, Mas., The MIT Press, chapters 5,7.
Vives, X., 1999, Oligopoly Pricing: Old Ideas and New Tools, Cambridge, Mass., The MIT Press, chapters 4-7.
• Homogeneous Product
Quantity competition
Boyer, M., and M. Moreaux, 1983, Consistent vs, Non-Consistent Conjectures in Duopoly Theory: Some Examples, The Journal of Industrial Economics, 32: 97-110.
Bresnahan, T. F., 1981, Duopoly Models with Consistent Conjectures, American Economic Review, 71: 934-945.
Long, N.V., and A. Soubeyran, 2000, Existence and Uniqueness of Cournot Equilibrium: a Contraction Mapping Approach, Economics Letters, 67: 345-348.
Maskin, E., and J. Tirole, 1987, A Theory of Dynamic Oligopoly III: Quantity Competition, European Economic Review, 31: 947-968.
Novshek, W., 1985, On the Existence of Cournot Equilibrium, Review of Economic Studies, 52: 86-98.
Perry, M. K., 1982, Oligopoly and Consistent Conjectural Variations, The Bell Journal of Economics, 13: 197-205.
Roberts, J. and H. Sonnenschein, 1977, On the Foundations of the Theory of Monopolistic Competition, Econometrica, 45: 101-113.
Sen, D., 2004, The Kinked Demand Curve Revisited, Economics Letters, 84: 99-105.
Szidarovsky, F. and S. Yakowitz, 1977, A New Proof of the Existence and Uniqueness of the Cournot Equilibrium, International Economic Review, 18: 787-789.
Vives, X., 1989, Cournot and the Oligopoly Problem, European Economic Review, 33: 503-514.
Price Competition
Baumol, W.J., J. Panzar and R.D. Willig, 1986, On the Theory of Perfectly Contestable Markets, in New Developments in the Analysis of Market Structure edited by J.E. Stiglitz and G.F. Matthewson, Cambridge, Mass., The MIT Press.
Boccard, N., and X. Wauthy, 2000, Bertrand Competition and Cournot Outcomes: Further Results, Economics Letters, 68: 279-285.
Chowdhury, P.R., 2005, Bertrand-Edgeworth duopoly with linear costs: A tale of two paradoxes, Economics Letters, 88: 61-65.
Davidson, C. and R. Deneckere, 1986, Long-Run Competition in Capacity, short-Run Competition in Price, and the Cournot Model, The Rand Journal of Economics, 17: 404-415.
Doyle, Jr., J.J., E. Muehlegger, and K. Samphantharak, 2008, Edgeworth Cycles revisited, NBER Working paper 14162.
Hoernig, S., 2007, Bertrand Oligopoly and Sharing Rules, Economic Theory, 31: 573-585.
Kopel, M., and C. Löffler, 2008, Commitment, First-mover, and Second-mover Advantage, Journal of Economics, 94: 143-166.
Kreps, D. and J. Scheinkman, 1983, Quantity Pre-Commitment and Bertrand Competition Yield Cournot Outcomes, Bell Journal of Economics, 37, 463-476.
Maskin, E., 1986, The Existence of Equilibrium with Price-Setting Firms, American Economic Review, Papers and Proceedings, 382-386.
Maskin, E., and J. Tirole, 1988, A Theory of Dynamic Oligopoly II: Price Competition, Kinked Demand Curves and Edgeworth Cycles, Econometrica, 56, 571-599.
Vives, X., 1993, Edgeworth and the Modern Oligopoly Theory, European Economic Review, 37: 463-476.
Price-Quantity Competition
Dasgupta, P. and E. Maskin, 1986, The Existence of Equilibrium in Discontinuous Economic Games, I: Theory, and II: Applications, Review of Economic Studies, 53: 1-26 and 27-42.
Friedman, 1.W., 1988, On the Strategic Importance of Prices vs. Quantities, RAND Journal of Economics, 19: 607-622.
Grossman, S., 1981, Nash Equilibrium and the Industrial Organization of Market with Large Fixed Costs, Econometrica. 49: 1149-1172.
Hart, O.D., 1982, Reasonable Conjectures, STICERD, London School of Economics.
Judd, K., 1996, Cournot vs. Bertrand: A Dynamic Resolution, mimeo.
• Differentiated Product
Cournot and Bertrand
Cheng, L., 1985, Comparing Cournot and Bertrand Equilibria: A Geometric Approach, The Rand Journal of Economics, 15: 146-151.
Judd, K.L., 1996, Cournot vs Bertrand: A Dynamic Resolution, mimeo.
Singh, A. and X. Vives, 1984, Price and Quantity Competition in a Differentiated Duopoly, The Rand Journal of Economics, 16: 546-554.
Monopolistic competition
Dixit, A. and J.E. Stiglitz, 1977, Monopolistic Competition and Optimum Product Diversity, American Economic Review, 67: 297-308.
Hart, O. D., 1985, Monopolistic Competition in the Spirit of Chamberlin: a General Model, Review of Economic Studies, 52: 529-546.
Hart, O. D., 1985, Monopolistic Competition in the Spirit of Chamberlin: Special Results, The Economic Journal, 95: 889-908.
Spence, A. M., 1976, Product Selection, fixed Costs and Monopolistic Competition, Review of Economic Studies, 43: 217-235.
Horizontal and Vertical differentiation
d’Aspremont, C., J.J. Gabszewicz and J.F. Thisse, 1979, On Hortelling’s ‘Stability in Competition’, Econometrica, 47: 1045-1050.
Gabszewicz, J.J. and J.F. Thisse, 1986, On the Nature of Competition with Differentiated Products, The Economic Journal, 96: 160-172.
Gabszewicz, J.J. and J.F. Thisse, 1979, Price Competition, quality and Income Disparities, Journal of Economic Theory, 20: 340-359.
Garella, P.G., and L. Lambertini, 1999, Good vs, bad Characteristics in Vertical Differentiation, Economics Letters, 65: 245-248.
Ishida, J., and N. Matsushima, 2004, a Noncooperative Analysis of a Circular City Model, Regional Science and Urban Economics, 34: 575-589
Novskek, W., 1980, Equilibrium in Simple Spatial (or Differentiated Products) Models, Journal of Economic Theory, 22: 313-326.
Salop, S., 1979, Monopolistic Competition with Outside Goods, The Bell Journal of Economics, 10: 141-156.
Shimizu, D., 2002, Product Differentiation in spatial Cournot Markets, Economics Letters, 76: 317-322.
Tabuchi, T., and J.F. Thisse, 1995, Asymmetric Equilibria in Spatial Competition, International Journal of Industrial Organization, 13: 213-227.
III. Entry and Exit
• Entry conditions and market structure
Suzumura, K., and K. Kiyono, 1987, Entry Barriers and Economic Welfare, Review of Economic Studies, 54: 157-167.
von Weizsacker, C.C., 1980, A Welfare Analysis of Barriers to Entry, Bell Journal of Economics, 11: 399-420.
• Product differentiation
Bagwell, K., 1990, Informational Product Differentiation as a Barrier to Entry, International Journal of Industrial Organization, 8: 207-223.
Farrell, J., 1986, Moral Hazard as an Entry Barrier, Rand Journal of Economics, 17: 440-449.
Gotz, G., 2005, Endogenous Sequnetial entry in a Spatial Model Revisited, International Journal of Industrial Organization, 23: 249-261
Neven, D.J., 1987, Endogenous Sequential Entry in a Spatial Model, International Journal of Industrial Organization, 5: 419-434.
• Strategic investment
Dixit, A., 1980, The role of Investment in Entry-Deterence, Economic Journal, 90: 95-106.
Fudenberg, D., and J. Tirole, 1984, The Fat-Cat Effect, the Puppy-Dog Ploy, and the Lean and Hungry Look, American Economic Review, 74: 361-366.
Kreps, D.M., and J. Scheinkman, 1983, Quantity Precommitment and Bertrand competition yield Cournot Outcomes, Bell Journal of Economics, 14: 326-337.
Spence, A.M., 1977, Entry, Capacity, Investment and Oligopolistic Pricing, Bell Journal of Economics, 8: 534-544.
• Predatory Pricing
Kreps, D.M., and R. Wilson, 1982, Reputation and Imperfect Information, Journal of Economic Theory, 27: 253-279.
Milgrom, P., and J. Roberts, 1982, Predation, Reputation and Entry Deterrence, Journal of Economic Theory, 27: 280-312.
Selten, R., 1978, The Chain Store Paradox, theory and Decision, 9: 127-159.
• Limit Pricing
Bain, J.S., 1949, A Note on Pricing in Monopoly and Oligopoly, American Economic Review, 39: 448-469.
Milgrom, P., and J. Roberts, 1982, Limit Pricing and Entry under Incomplete Information, Econometrica, 50: 443-466.
• Exit
Frank, M.Z., 1988, An Intertemporal Model of Industrial Exit, Quarterly Journal of Economics, 103: 333-344.
Fudenberg, D., and J. Tirole, 1986, A Theory of Exit in Duopoly, Econometrica, 54: 943-960.
Ghemawat, P. and B. Nalebuff, 1985, Exit, Rand Journal of Economics, 16: 184-194.
IV. Collusion
• Static games
Capuano, C., 2005, Abuse of Competitive Fringe, Fondazione Enrico Mattei, Nota di Lavoro 91.2005
d’Aspremont, C., A. Jacquemin, J.J. Gabszewicz, and A. Weymark, 1983, On the Stability of Collusive Price Leadership, Canadian Journal of Economics, 16: 17-25.
d’Aspremont, C., and J.J. Gabszewicz, 1986, On the Stability of Collusion, in New Developments in the Analysis of Market Structure, edited by J.E. Stiglitz and G.F. Mathewson, Cambridge (Mass.), The MIT Press, 243-261.
Donsimoni, M.P., 1985, Stable Heterogenous Cartels, International Journal of Industrial Organization, 3: 451-467.
Donsimoni, M.P., N.S. Economides, and H.M. Polemarchakis, 1986, Stable Cartels, International Economic Review, 27: 317-327.
Ma, T-Ch., 2005, The Collusive Equilibrium in a Quantity-Setting Supergame: An application to Taiwan's flour industry, Review of Industrial Organization, 27: 107-124.
Selten, R., 1973, A Simple Model of Imperfect Competition where four are Few and Six are Many, International Journal of Game Theory, 2: 141-201.
Shaffer, G., 1995, Stable Cartels with a Cournot Fringe, Southern Economic Journal. 61: 744-754.
Weikard, H.P., 2005, Cartel Stability under an Optimal Sharing rule, Nota di Lavoro 77.2005, Fondazione Enrico Mattei, Milano.
• Repeated games
Abreu, D., D. Pearce, and E. Stacchetti, 1986, Optimal Cartel Equilibria with Imperfect Monitoring, Journal of Economikc Theory, 39: 251-269.
Friedman, J.W., 1971, A Non-Cooperative Equilibrium for Supergames, Review of Economic Studies, 38: 1-12.
Friedman, J.W., 1985, Cooperative Equilibria in Finite Horizon Noncooperative Supergames, Journal of Economic Theory, 35: 390-398.
Harrington, J.E. Jr, 1991, The Joint Profit Maximization as a Free-entry Equilibrium Outcome, European Economic Review, 35: 1087-1101.
• Price Wars
Green, E.J. and R.H. Porter, 1984, Noncooperative Collusion under Imperfect Price Information, Econometrica, 52: 87-100.
Porter, R.H., 1983, Optimal Cartel Trigger Strategies, Journal of Economic Theory, 29: 313-318.
Porter, R.H., 1983, A Study of Cartel Stability: the Joint Executive Committee, 1880-1886, Bell Journal of Economics, 14: 301-314.
• Facilitating practices
Albaek, S., P. Mollgaard, and P.B. Overgaard, 1997, Government-assisted Oligopoly Coordination? A concrete Case, Journal of Industrial Economics, 45: 429-443.
Bernheim, B.D., and M.D. Whinston, 1985, Common Marketing Agency as a Device for Facilitating Collusion, Rand Journal of Economics, 16: 260-281.
Salop, S.C., 1986, Practices that (credibly) Facilitate Oligopoly Co-ordination, in New Developments in the Analysis of Market Structure, edited by J.E. Stiglitz and G.F. Mathewson, Cambridge (Mass.), The MIT Press, 265-294.