The Theory of Industrial Organization is the first primary text to treat the newindustrial organization at the advanced-undergraduate and graduate level. Rigorously analytical andfilled with exercises coded to indicate level of difficulty, it provides a unified and moderntreatment of the field with accessible models that are simplified to highlight robust economic ideaswhile working at an intuitive level.To aid students at different levels, each chapter is dividedinto a main text and supplementary section containing more advanced material. Each chapter openswith elementary models and builds on this base to incorporate current research in a coherentsynthesis.Tirole begins with a background discussion of the theory of the firm. In part I hedevelops the modern theory of monopoly, addressing single product and multi product pricing, staticand intertemporal price discrimination, quality choice, reputation, and vertical restraints.In partII, Tirole takes up strategic interaction between firms, starting with a novel treatment of theBertrand-Cournot interdependent pricing problem. He studies how capacity constraints, repeatedinteraction, product positioning, advertising, and asymmetric information affect competition ortacit collusion.

He then develops topics having to do with long term competition, including barriersto entry, contestability, exit, and research and development. He concludes with a "game theoryuser's manual" and a section of review exercises.Jean Tirole is a Professor of Economics atMIT.