Industrial organization economics mainly includes three parts: imperfect competition, that is, studying the relationship between various markets; The target, scale and organization of the enterprise; The public policies related to industrial organizations are mainly control and anti-monopoly policies.
imperfect competition
The traditional "structure and performance" paradigm regards market structure, enterprise behavior and market performance as a chain with unilateral influence, emphasizes empirical industry research and uses large samples of various industries for regression. Modern industrial organizations analyze the market structure, enterprise strategic behavior and market performance as joint endogenous variables, emphasizing the dynamic change process of these variables. Recently, the dynamic symmetric information oligopoly model developed by C. Fershtman and A. Pakes emphasizes the influence of collusion ability between enterprises on the motivation of developing and improving products in the market, and further analyzes its influence on product types, prices and quality.
The research of industrial organization economics shows that there is a U-shaped relationship between the scale difference level of enterprises in the industry and market power, that is, with the increase of market concentration, market power first drops and then rises. In addition, under the conditions of endogenous cost and input into the market, the level of market power is measured by establishing two-stage model (the first stage is capacity decision and the second stage is price decision), and the judgment results of the new measurement method are also different.
The competitive behavior of enterprises has always been a key issue in the study of industrial organization economics. The recent industrial organization economics studies how the advertising and technological development of enterprises affect the relationship between market concentration and exogenous factors such as market size and product difference, and the influence of short-term behavior on market concentration and non-price competition in industries with endogenous precipitation costs, that is, those industries with large advertising and technological development.
The study of industrial organization economics on enterprise transformation and flow has penetrated into many important issues in traditional industrial organizations, such as the entry, exit and scale of enterprises. The main results are as follows: (1) In general industries, the average growth rate of small enterprises decreases with the increase of initial scale, but it has nothing to do with enterprises with larger initial scale; (2) In most industries, total entry is far greater than net entry; (3) The initial scale chosen by the entrant not only reflects the market structure, but also reflects the enterprise's judgment on the production capacity; (4) The concentration of manufacturing industry is negatively related to the changes caused by the entry and exit of enterprises, and it is higher than the current liquidity of existing enterprises; (5) Traditional structural barriers to entry not only reflect the number of entrants, but also reflect the survival rate of entrants, and the latter is more important.
The network effect profoundly affects the market structure and the strategic behavior of enterprises, and puts forward new problems to industrial organizations. Industrial organizations have also made progress in analyzing network externalities, such as how manufacturers use product bundling to maintain and create monopoly power in the presence of network externalities, how monopolists choose the pricing of durable goods or new technologies with network externalities, and how manufacturers choose the time for technology development and technology compatibility.
(2) the goal, organization and scale of the enterprise
This part of the industrial organization economics research is combined with corporate finance theory. On the one hand, industrial organization economics studies the influence of external factors such as market structure on the internal structure of enterprises, on the other hand, it also pays attention to the influence of enterprise structure arrangement on the market. Based on the equilibrium model of market structure established by incomplete contract theory, this paper analyzes the influence of the choice of enterprise organization form on the degree of market competition and the efficiency implication of this choice when the investment is completely or partially dedicated. Industrial organization economics pays more and more attention to the influence of enterprise contract environment on enterprise governance structure and performance, which is the other side of studying the influence of enterprise structure and behavior on market structure and performance. At the same time, the market structure is regarded as an important factor affecting the corporate governance structure, such as studying how deregulation affects the changes of corporate governance structure. Of course, the study of corporate governance structure is still the focus of corporate theory research.
(3) Public policy
The public policies discussed in the economics of industrial organization are mainly control measures and anti-monopoly policies aimed at market structure and enterprise behavior. The newly developed control theory emphasizes the information asymmetry between the controller and the controlled enterprise, and establishes an incentive control mechanism. At the same time, because enterprises have more technical information, it is necessary to abandon the rent control of enterprises in order to encourage enterprises to improve production efficiency. In addition, some meaningful empirical analysis provides a strong theoretical basis for evaluating how to design various control means and mechanisms to control institutional relics to avoid the capture of government-controlled interest groups.
With the development of western economy, in addition to the research on traditional regulation and anti-monopoly, industrial organization economics pays more and more attention to deregulation and privatization, and at the same time, a large number of theoretical and empirical research documents on the effects, reasons and methods of privatization and deregulation have appeared.
Excerpted from Economic Trends 200 1.3