Industrial organization is concerned with the workings of markets and industries, in particular, the way firms compete with each other. It also advises on how to develop public policies to promote competition and enhance consumer welfare.
- What is the market structure in a particular industry? Do firms there have market power? How can we credibly measure it?
- What strategies can firms take to acquire and maintain market power?
- What are the consequences of market power? Can competition policy (antitrust) and/or regulation mitigate its negative consequences?