Industrial Economics Application Examples

This chapter provides a collection of problems with detailed solutions from the domain of industrial economics dealing with the competitive behavior of companies on markets. The examples cover topics like competition on price (e.g. Bertrand-competition), market share (e.g. Cournot competition and advertising), strategic incentives for investment (e.g. R&D and technical standards), incentive mechanisms for compensation as well as implications of market regulation (e.g. lobbying and anti-competitive behavior such as cartels).