Industrial Organization

  1. Market Power and Pricing
    1. Measuring Market Power
      1. Lerner Index
        1. Formula and Calculation
          1. Interpretation
            1. Limitations
            2. Concentration Ratios
              1. Four-Firm Concentration Ratio
                1. Eight-Firm Concentration Ratio
                  1. Uses and Applications
                    1. Limitations
                    2. Herfindahl-Hirschman Index
                      1. Calculation Method
                        1. Interpretation Guidelines
                          1. Policy Applications
                            1. Advantages over Concentration Ratios
                          2. Price Discrimination Theory
                            1. Conditions for Price Discrimination
                              1. Market Power Requirement
                                1. Market Segmentation Ability
                                  1. Prevention of Arbitrage
                                  2. First-Degree Price Discrimination
                                    1. Perfect Price Discrimination
                                      1. Implementation Challenges
                                        1. Welfare Effects
                                          1. Real-World Examples
                                          2. Second-Degree Price Discrimination
                                            1. Non-Linear Pricing
                                              1. Block Pricing
                                                1. Quantity Discounts
                                                  1. Two-Part Tariffs
                                                    1. Fixed Fees
                                                      1. Per-Unit Pricing
                                                      2. Third-Degree Price Discrimination
                                                        1. Group Pricing
                                                          1. Market Segmentation Methods
                                                            1. Observable Characteristics
                                                              1. Welfare Analysis
                                                                1. Common Examples
                                                              2. Advanced Pricing Strategies
                                                                1. Bundling Strategies
                                                                  1. Pure Bundling
                                                                    1. Mixed Bundling
                                                                      1. Product Packages
                                                                        1. Consumer Heterogeneity
                                                                        2. Tying Arrangements
                                                                          1. Complementary Products
                                                                            1. Strategic Motivations
                                                                            2. Peak-Load Pricing
                                                                              1. Demand Fluctuations
                                                                                1. Capacity Constraints
                                                                                  1. Optimal Pricing Rules
                                                                                  2. Predatory Pricing
                                                                                    1. Strategic Motivations
                                                                                      1. Below-Cost Pricing
                                                                                        1. Recoupment Theory

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                                                                                    2. Microeconomic Foundations

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                                                                                    4. Oligopoly Theory and Strategic Interaction