The economics of industrial organization, as detailed in William Shepherd’s seminal work, explores the conduct and performance of firms in various market structures. Take the telecommunications industry, where firms compete in local markets, influencing prices, service quality, and innovation.
Understanding these dynamics is crucial for policy-makers designing competition laws, regulating mergers, and promoting economic efficiency. Critically, Shepherd’s work formalised the analysis of market power and strategic behavior, revolutionising the field.
