What is Industrial Organization?

“Industrial organization is concerned with the workings of markets and industries, in particular the ways firms compete with each other” - Luis Cabral

• We care about all industries and markets
  • Each industry operates in a slightly different way
• Unit of observation will most commonly be the firm
  • We want to determine the legality of firms actions as it relates to welfare
  • We will develop a measure of economic efficiency
  • We’ll apply simple game theory when needed