A Helicopter Tour of Some Underlying Issues in Empirical Industrial Organization

This review considers conceptual issues underlying empirical work on markets. It is divided in three parts. The first part reviews the analysis of demand and equilibrium retail markets then recent advances that require different assumptions: where adverse selection moral hazard may be important, vertical with bargaining, wherein a centralized allocation mechanism replaces prices. second cost production. simultaneity production function estimation distinction between revenue- quantity-generating functions its implications for markups, as well fixed costs product repositioning. concludes by considering arise due to complexity market dynamics appropriate ways dealing them.