This updated and substantially revised 2nd edition, like its predecessor, integrates a discussion of the latest theoretical developments with a comprehensive review of empirical work.

This edition presents new discussions about:

• the classical view of the Cournot model
• strategic substituability and complementarity
• representative consumer models of product differentiation
• supply function oligopoly
• the Kreps and Scheinkman model with product differentiation
• the New Empirical Industrial Organization, Solow residual, and event study approaches to the analysis of market power;
• deterministic and stochastic models of research and development
• the resource-based view of the firm

Expanded treatments of:

• Hotelling's spatial model
• oligopoly with quality differentiation
• empirical evidence on entry and exit
• the analysis of firm structure