How geoge stigler and schmalensee 1968 defines industral economics
To understand how George Stigler and Joseph Schmalensee defined industrial economics in their 1968 book "Industrial Organization: Theory and Applications," we can look at some key concepts they presented.
Industrial economics is a branch of economics that focuses on the behavior and performance of firms within industries and markets. Stigler and Schmalensee provide a theoretical and empirical framework to study various aspects of industrial economics.
In their book, they define industrial economics as the study of how firms make production and pricing decisions, how markets are structured, and how firms interact within these markets. They analyze the nature of competition, market power, and strategic behavior among firms.
Stigler and Schmalensee's approach to industrial economics is based on the concept of "perfect competition" as a benchmark and then examining deviations from this ideal state. They explore topics such as market structure, barriers to entry, economies of scale, pricing strategies, and the role of government regulations.
To get a deeper understanding of their theory and approach, it is recommended to read their book "Industrial Organization: Theory and Applications," as it provides comprehensive insights into the subject. Further research and exploration of academic articles and studies in the field of industrial economics can also enhance understanding and knowledge.