The following
outline is provided as an overview of and topical guide to industrial organization:
Industrial organization
In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. Industrial organization adds real-world complications to the per ...
– describes the behavior of firms in the marketplace with regard to production, pricing, employment and other decisions. Issues underlying these decisions range from classical issues such as
opportunity cost
In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives. Assuming the best choice is made, ...
to neoclassical concepts such as
factors of production
In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, goods and services. The utilised amounts of the various inputs determine the quantity of output according to the rela ...
.
Overview
* a field of
economics
Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services.
Economics focuses on the behaviour and interac ...
that studies:
** the
strategic behavior of
firms
** the structure of
markets
***
Perfect competition
In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In Economic model, theoret ...
***
Monopolistic competition
Monopolistic competition is a type of imperfect competition such that there are many producers competing against each other but selling products that are differentiated from one another (e.g., branding, quality) and hence not perfect substi ...
***
Oligopoly
An oligopoly () is a market in which pricing control lies in the hands of a few sellers.
As a result of their significant market power, firms in oligopolistic markets can influence prices through manipulating the supply function. Firms in ...
***
Oligopsony
***
Monopoly
A monopoly (from Greek language, Greek and ) is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic Competition (economics), competition to produce ...
***
Monopsony
In economics, a monopsony is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers. The Microeconomics, microeconomic theory of monopsony assume ...
** and the interactions between them
Concepts
Production side of Industry:
*
Production theory
**
productive efficiency
**
factors of production
In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, goods and services. The utilised amounts of the various inputs determine the quantity of output according to the rela ...
** total, average, and marginal product curves
**
marginal productivity
**
isoquants &
isocosts
** the
marginal rate of technical substitution
*
Production function
In economics, a production function gives the technological relation between quantities of physical inputs and quantities of output of goods. The production function is one of the key concepts of mainstream economics, mainstream neoclassical econ ...
**inputs
**
diminishing returns to inputs
**the stages of production
**shifts in a production function
*
Economic rent
In economics, economic rent is any payment to the owner of a factor of production in excess of the costs needed to bring that factor into production. In classical economics, economic rent is any payment made (including imputed value) or bene ...
**
classical factor rents
**
Paretian factor rents
*
Production possibility frontier
Production may refer to:
Economics and business
* Production (economics)
* Production, the act of manufacturing goods
* Production, in the outline of industrial organization, the act of making products (goods and services)
* Production as a stat ...
** what production levels are possible given a set of resources
** the trade-off between various input combinations
** the
marginal rate of transformation
Cost side of Industry:
*
Cost theory
**Different types of
cost
Cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it i ...
s
***
opportunity cost
In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives. Assuming the best choice is made, ...
***
accounting cost or historical costs
***
transaction cost
***
sunk cost
***
marginal cost
**The
isocost line
*
Cost-of-production theory of value
In economics, the cost-of-production theory of value is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it. The cost can comprise any of the factors of production (incl ...
*
Long-run cost and production functions
**
long-run average cost
**long-run production function and
efficiency
Efficiency is the often measurable ability to avoid making mistakes or wasting materials, energy, efforts, money, and time while performing a task. In a more general sense, it is the ability to do things well, successfully, and without waste.
...
**returns to scale and isoclines
**
minimum efficient scale
**plant capacity
*
Economies of density
**
Economies of scale
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of Productivity, output produced per unit of cost (production cost). A decrease in ...
***the efficiency consequences of increasing or decreasing the level of production.
**
Economies of scope
***the efficiency consequences of increasing or decreasing the number of different types of products produced, promoted, and distributed.
**
Network effect
In economics, a network effect (also called network externality or demand-side economies of scale) is the phenomenon by which the Value (economics), value or utility a user derives from a Goods, good or Service (economics), service depends on th ...
***the effect that one user of a good or service has on the value of that product to other people.
*
Optimum factor allocation
**
output elasticity of
factor costs
**
marginal revenue product
**marginal resource cost
*
Pricing
Pricing is the Business process, process whereby a business sets and displays the price at which it will sell its products and services and may be part of the business's marketing plan. In setting prices, the business will take into account the ...
and various aspects of the pricing decision
**
Transfer pricing
Transfer pricing refers to the rules and methods for pricing transactions within and between enterprises under common ownership or control. Because of the potential for cross-border controlled transactions to distort taxable income, tax authorit ...
***selling within a multi-divisional company
**
Joint product pricing
***price setting when two products are linked
**
Price discrimination
Price discrimination (differential pricing, equity pricing, preferential pricing, dual pricing, tiered pricing, and surveillance pricing) is a Microeconomics, microeconomic Pricing strategies, pricing strategy where identical or largely similar g ...
***different prices to different buyers
***types of price discrimination
**
Yield management
**
Price skimming
***price discrimination over time
**
Two-part tariff
A two-part tariff (TPT) is a form of price discrimination wherein the price of a product or service is composed of two parts – a lump-sum fee as well as a per-unit charge. In general, such a pricing technique only occurs in partially or fully ...
s
***charging a price composed of two parts, usually an initial fee and an ongoing fee
**
Price points
***the effects of a non-linear demand curve on pricing
**
Cost-plus pricing
***a
markup is applied to a cost term in order to calculate price
***
cost-plus pricing with elasticity considerations
***cost plus pricing is often used along with
break even analysis
**
Rate of return pricing
*** calculate price based on the required rate of return on investment, or rate of return on sales
*
Profit maximization
**determining the optimum price and quantity
**the totals approach
**marginal approach of production
People
*
Antoine Augustin Cournot
Antoine Augustin Cournot (; 28 August 180131 March 1877) was a French philosopher and mathematician who contributed to the development of economics.
Biography
Antoine Augustin Cournot was born on August 28, 1801 in Gray, Haute-Saône. He ent ...
*
Heinrich Freiherr von Stackelberg
Heinrich Freiherr von Stackelberg (October 31, 1905 – October 12, 1946) was a German economist who contributed to game theory and industrial organization and is known for the Stackelberg leadership model.
Stackelberg became a member of the Nazi ...
*
Jean Tirole
*
Joseph Bertrand
*
William Baumol
See also
External links
Industrial Organization Society
{{Outline footer
Industrial organization
In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. Industrial organization adds real-world complications to the per ...
Industrial organization
In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. Industrial organization adds real-world complications to the per ...
*
Pricing
Production economics