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Tirole Industrial Organization Solution Manual Pdf

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August 1988About MIT Press eBooks Essential Info Table of Contents Preface Introduction The Theory of the Firm 1 What Is a Firm? 2 The Profit-Maximization Hypothesis 3 Supplementary Section: The Principal-Agent Relationship Answers and Hints References I The Exercise of Monopoly Power 1 Monopoly 1.1 Pricing Behavior 1.2 Cost Distortions 1.3 Rent-Seeking Behavior 1.4 Concluding Remarks 1.5 Supplementary Section: Durable Goods and Limits on Monopoly Power Answers and Hints Appendix: A Heuristic Proof of the Coase Conjecture References 2 Product Selection, Quality, and Advertising 2.1 The Notion of Product Space 2.2 Product Selection 2.3 Quality and Information 2.4 Advertising 2.5 Concluding Remarks 2.6 Supplementary Section: Repeat Purchases Answers and Hints References 3 Price Discrimination 3.1 Perfect Price Discrimination 3.2 Multimarket (Third-Degree) Price Discrimination 3.3 Personal Arbitrage and Screening (Second-Degree Price Discrimination) 3.4 Concluding Remarks 3.5 Supplementary Section: Nonlinear Pricing Answers and Hints References 4 Vertical Control 4.1 Linear Prices versus Vertical Restraints 4.2 Externalities and Vertical Control 4.3 Intrabrand Competition 4.4 Interbrand Competition 4.5 Concluding Remarks 4.6 Supplementary Section: Competition-Reducing Restraints Answers and Hints References II Strategic Interaction 5 Short-Run Price Competition 5.1 The Bertrand Paradox 5.2 Solutions to the Bertrand Paradox: An Introduction 5.3 Decreasing Returns to Scale and Capacity Constraints 5.4 Traditional Cournot Analysis 5.5 Concentration Indices and Industry Profitability 5.6 Concluding Remarks Answers and Hints References 6 Dynamic Price Competition and Tacit Collusion 6.1 Conventional Wisdom (Factors Facilitating and Hindering Collusion) 6.2 Static Approaches to Dynamic Price Competition 6.3 Supergames 6.4 Price Rigidities 6.5 Reputation for Friendly Behavior 6.6 Concluding Remarks 6.7 Supplementary Section: Dynamic Games and Tacit Collusion Answers and Hints References 7 Product Differentiation: Price Competition and Non-Price Competition 7.1 Spatial Competition 7.2 Monopolistic Competition 7.3 Advertising and Informational Product Differentiation 7.4 Concluding Remarks 7.5 Supplementary Section: Vertical Differentiation and Monopolistic Competition Answers and Hints References 8 Entry, Accomodation, and Exit 8.1 Fixed Costs: Natural Monopoly and Contestability 8.2 Sunk Costs and Barriers to Entry: The Stackelberg-Spence-Dixit Model 8.3 A Taxonomy of Business Strategies 8.4 Applications of the Taxonomy 8.5 Epilogue: Prices versus Quantities 8.6 Supplementary Section: Strategic Behavior and Barriers to Entry or Mobility Answers and Hints References 9 Information and Strategic Behavior: Reputation, Limit Pricing, and Predation 9.1 Static Competition under Asymmetric Information 9.2 Dynamics: A Heuristic Approach 9.3 Accommodation and Tacit Collusion 9.4 The Milgrom-Roberts Model of Limit Pricing 9.5 Predation for Merger 9.6 Multimarket Reputation 9.7 The "Long Purse" Story 9.8 Concluding Remarks 9.9 Supplementary Section: Darwinian Selection in an Industry Answers and Hints References 10 Research and Development and the Adoption of New Technologies 10.1 Incentives as a Function of the Market Structure: The Value of Innovation 10.2 Introduction to Patent Races 10.3 Welfare Analysis of Patent Races 10.4 Alternative Inducements to R&D 10.5 Strategic Adoption of New Technologies 10.6 Network Externalities, Standardization, and Compatibility 10.7 Concluding Remarks 10.8 Supplementary Section: Patent Licensing and Research Joint Ventures Answers and Hints References 11 Noncooperative Game Theory: A User's Manual 11.1 Games and Strategies 11.2 Nash Equilibrium 11.3 Perfect Equilibrium 11.4 Bayesian Equilibrium 11.5 Perfect Bayesian Equilibrium 11.6 Supplementary Section Answers and Hints References Review Exercises Index Instructor Resources Digital Exam/Desk CopyPrint Exam/Desk CopyAncillary Material The Theory of Industrial Organization Instructor Resources for This Title: Solution Manual About the Author Jean Tirole, the 2014 Nobel Laureate in Economics, is Scientific Director of IDEI (Institut d'Economie Industrielle), Chairman of the Board of TSE (Toulouse School of Economics), and Annual Visiting Professor of Economics at MIT. 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