There are different approaches to the subject. One approach is
descriptive in providing an overview of industrial organization, such as
measures of competition and the size-concentration of firms in an industry. A second approach uses microeconomic
models to explain internal firm organization and market strategy, which
includes internal research and development along with issues of
internal reorganization and renewal. A third aspect is oriented to public policy as to economic regulation, antitrust law,
and, more generally, the economic governance of law in defining
property rights, enforcing contracts, and providing organizational infrastructure.
The subject has a theoretical side and a practical side. According to
one textbook: "On one plane the field is abstract, a set of analytical
concepts about competition and monopoly. On a second plane the topic is
about real markets, teeming with the excitement and drama of struggles
among real firms" (Shepherd, W.; 1985; 1).
The extensive use of game theory in industrial economics has led to the export of this tool to other branches of microeconomics, such as behavioral economics and corporate finance. Industrial organization has also had significant practical impacts on antitrust law and competition policy.
The development of industrial organization as a separate field owes much to Edward Chamberlin,Edward S. Mason, J. M. Clark,and particularly Joe S. Bainamong others.
Assessments of the subject have differed over time. The preface to a related research volume in 1972 remarked on Whither industrial organization?: "That all is not well with this in this once flourishing field is readily apparent."A response came 15 years later: "[T]oday's verdict is that industrial
organization is alive and well and the queen of applied microeconomics."
Well-conducted, and with good health status.
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