October 1, 1997

An analytical framework of industrial organisation for policy analysis

This paper discusses an analytical framework of industrial organization and a guide for policy analysis. It is mainly addressed to policy makers entrusted with competition policy, industrial policy and regulatory reform in particular markets.

The analytical framework contains a taxonomy of several IO theories that consider relations between competitors, suppliers and customers on a market. It highlights firm behavior that results from or induce market imperfections. The guide for policy analysis then points to the potential role for policy to remove these market distortions and improve dynamic welfare. See also the article Detecting relevant policy issues on competition and regulation in CPB Report 1997/4.

Authors

Harold Creusen