Working Paper: NBER ID: w15786
Authors: Liran Einav; Jonathan D. Levin
Abstract: The field of Industrial Organization has made dramatic advances over the last few decades in developing empirical methods for analyzing imperfect competition and the organization of markets. We describe the motivation for these developments and some of the successes. We also discuss the relative emphasis that applied work in the field has placed on economic theory relative to statistical research design, and the possibility that a focus on methodological innovation has crowded out applications. We offer some suggestions about how the field may progress in coming years.
Keywords: No keywords provided
JEL Codes: C8; L0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| market structure (D49) | competition (L13) |
| development of game theory (C72) | understanding of strategic behaviors (L21) |
| estimation of demand elasticities (D12) | understanding of market power (D43) |
| entry and exit dynamics (C69) | understanding of competitive mechanisms (D43) |
| empirical studies focusing on individual industries (L60) | identifying causal relationships (C32) |
| institutional contexts (O17) | clarity of causal inference (D80) |