The Economics Of Market Power – Industrial Organization Economics

Abstract

Industrial Organization as a branch of Economics concerned with the conduct of Firms which operates in Imperfect Markets.IO as a discipline is involved in study of those factors and strategies which helps the firms to achieve superior performance or competitive advantage. Since the emphasis of IO remains on the rivalry conditions which exist in markets hence much of the study of IO is the theory of Business Strategy. Industrial Organization is all about the way in which the firms in the markets compete with each other.IO is concerned with behavior of Firms in the Non Perfectly Competitive Markets. Market Power exists because of the existence of Imperfect Competition.