Industrial Organization

row of houses

What is the demand for new homes during a recession? How much are consumers willing to pay for the latest iPhone? IO economists can estimate demand for a particular industry and willingness to pay for goods by analyzing consumer behavior. They also model the structure, behavior, and performance of firms within their respective markets. Theoretical and empirical work in this field investigates issues surrounding auctions, market entry, monopolies, price discrimination, organization, and vertical market structures.