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Experiments in Industrial Organization

In: Recent Developments in the Theory of Industrial Organization

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  • John D. Hey

Abstract

This chapter overviews the application of experimental methods in the field of industrial organization (IO). It begins by making the case for the use of such methods in this important field, arguing that experimental methods give a unique opportunity to the IO theorist to test theories under controlled conditions which exactly reproduce the theoretical environment in the laboratory. Some broader methodological points are also made. The chapter then gives an overview of past and present experimental work in industrial organization and demonstrates that such work has provided important insight into key theories and concepts in tO. A number of illustrations are given, both past and potential. The chapter concludes by discussing those areas of industrial organization which have not yet benefitted by exposure to experimental investigation but which could fruitfully be so exposed, and by arguing that such investigation could ultimately lead to a transformation in the way theorists view the field of IO.

Suggested Citation

  • John D. Hey, 1992. "Experiments in Industrial Organization," Palgrave Macmillan Books, in: Alfredo Monte (ed.), Recent Developments in the Theory of Industrial Organization, chapter 3, pages 58-76, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-11771-0_4
    DOI: 10.1007/978-1-349-11771-0_4
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