The introduction to industrial organisation theory, together with applications and nontechnical evaluations of the legal system and antitrust legislation, are all included in this upper-level undergraduate text. It bridges the gap between current non-theoretical texts written for undergraduates and highly technical texts written for graduate students by employing the modern approach without placing a heavy emphasis on the inherent mathematical generality in many of the arguments. The book is applicable to master's degrees as well, and advanced graduate students will find it to be a useful resource for understanding contemporary industrial organisation. The procedure is thorough and exacting. Various models of all commonly used market structures, strategic marketing tools, compatibility and standards, advertising, R&D, as well as more traditional themes are taken into consideration in versions that are greatly simplified from the originals while maintaining the original concepts.Shy first defines the issues that industrial organization addresses and then develops the tools needed to attack the basic questions. He begins with perfect competition and then considers imperfectly competitive market structures including a wide variety of monopolies, and all forms of quantity and price competitions. The last chapter provides a helpful feature for students by showing how various theories may be related to particular industries but not to others.Topics include: the basics needed to understand modern industrial organization; market structure (monopoly, homogenous products, differentiated products); mergers and entry; research and development; economics of compatibility and standards; advertising; quality and durability; pricing tactics; marketing tactics; management, compensation, and information; price dispersion and search theory; and special industries.