Volume : VII, Issue : VI, June - 2017

Industrial organization

Khushboo Gupta

Abstract :

Industrial organization is concerned with the workings of markets and industries, in particular the way firms compete with each other. The main reason for considering industrial organization as a separate subject is its emphasis on the study of the firm strategies that are characteristic of market interaction: price competition, product positioning, advertising, research and development, and so forth. Four aspects of market structure have attracted the interest of students of industrial organization. These are : (a)   Firm Boundaries – Vertical integration occurs when a number of sequential production stages are organized within a single firm instead of each stage corresponding to a separate firm.   (b)  Seller Concentration – Seller concentration is a measure of the number and size distribution of firms. Industrial organization attempts to identify the factors that influence or determine seller concentration.     (c)   Product Differentiation – Product differentiation exists when products produced by different firms are not viewed as perfect substitutes by consumers. Alternatively, products are not homogeneous, but heterogeneous.   (d)  Conditions of Entry – The conditions of entry refer to the ease with which new firms can enter a market.  

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Khushboo Gupta, Industrial organization, INDIAN JOURNAL OF APPLIED RESEARCH : Volume‾7 | Issue‾6 | June‾2017

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