Jeffery David Whippo Explains His Views on Industrial Organization and Competition

Jeffery David Whippo Explains His Views on Industrial Organization and Competition Jeffery David Whippo shares his views on industrial organization and competition. He describes the extent to which markets are competitive. Industrial Organization is the area of economics that studies the markets as institutions, the state of competition and strategic interaction among firms, the industrial policy and the business decisions firms make within the market framework.

Industrial organization draws upon contributions from a variety of fields of economic inquiry including game theory, information theory, organization theory, agency theory, and transaction cost analysis, as well as the related field of strategic management.

According to Jeffery, it is concerned with the working of markets and industries. It emphasizes on the study of the firm strategies that are characteristic of market interaction including price competition, product positioning, advertising, research and development, and so forth. Overall, it is concerned with the intermediate case of competition between a few firms.

Jeffery D Whippo states that there are various forms of industrial organizations which are based on production and selling environment economists group industries into market structures.

These forms include pure competition, monopoly, oligopoly, and monopolistic.

He talks about monopolistic competition industry; market companies compete against one another based on product innovation and differentiation opposed to price. There are many firms, each selling slightly differentiated products that are not perfect substitutes for one another. Besides, a monopolistically competitive firm can raise its price without driving away every customer.