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Organizational Management In Industries | Open Access Journals
Arabian Journal of Business and Management Review

Arabian Journal of Business and Management Review

ISSN: 2223-5833

Open Access

Organizational Management In Industries

Industrial organization is a field of economics dealing with the strategic behavior of firms, regulatory policy, antitrust policy and market competition. Industrial organization applies the economic theory of price to industries. Industrial organization is also sometimes referred to as "industrial economy." Economists and other academics who study industrial organization seek to increase understanding of the methods by which industries operate, improve industries contributions to economic welfare, and improve government policy in relation to these industries. The "industrial" in industrial organization refers to any large-scale business activity, such as tourism or agriculture — not just manufacturing. Industrial organization is also sometimes referred to as "industrial economy." The study of industrial organization builds on the theory of the firm, a set of economic theories that describe, explain and attempt to predict the nature of a firm in terms of its existence, behavior, structure and its relationship to the market. In a 1989, economists Bengt Holmstrom and Jean Tirole posed two simple questions for a theory of the firm.

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