The Interaction between Game Theory and Theoretical Industrial Economics

James Friedman

Scottish Journal of Political Economy, 1992, vol. 39, issue 4, 353-73

Abstract: This paper considers the impact of game theory on economics and of economics on game theory, particularly with reference to the ways that industrial economics has been affected. Some old, pre-game theory oligopoly models of P. Sweezy, H. Stackelberg, and E. H. Chamberlin are revisited and analyzed from a game theoretic standpoint. Then some recent work is examined in which the game theoretic influence is evident. After that the "folk theorem" and its relationship to industrial economics is considered. Finally, some guesses are offered concerning the future directions that theoretical industrial organization should take and the relationship of game theory to these directions. Copyright 1992 by Scottish Economic Society.

Date: 1992
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Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

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