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Published in: Review of Industrial Organization 4/2018

16-01-2018

Industrial Organization and the Organization of Industries: Linking Industry Structure to Economic Performance

Author: David B. Audretsch

Published in: Review of Industrial Organization | Issue 4/2018

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Abstract

This paper examines how and why the field of industrial organization generated so much interest and excitement during the era corresponding to publication of the three editions of Scherer’s seminal work, Industrial Structure and Economic Performance. The paper concludes that it was the ability to address the compelling issues of its era confronting public policy that made the academic field of industrial organization not just interesting but also highly relevant and timely. In particular, by analyzing how and why the organization of industries matters for economic performance, along with the various policy approaches available to public policy, under the stewardship of F.M. Scherer, the scholarly field of industrial organization prospered and flourished.

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Footnotes
1
Quoted from Finch (1902, p. 95).
 
2
Peter Flemming, “What is Human Capital?” Aeon, 10 May, 2017, accessed on May 18, 2017 at https://​aeon.​co/​essays/​how-the-cold-war-led-the-cia-to-promote-human-capital-theory.
 
3
Taylor (1911), as cited in Matthew Stewart, “The Management Myth,” Atlantic, June 2006, p. 81.
 
4
Munn v. Illinois, 94 U.S. 113 (1877).
 
5
U.S. v. U.S. Steel Corp., 251 U.S. 417 (1920).
 
6
Quoted from Rosenberg (1992, p. 197).
 
7
For a more updated analysis of trends in aggregate concentration, see White (2002).
 
8
U.S. v. Aluminum Co. of America, 148 F. 2 cl 416 (1945). The second Circuit Court served as a “court of last resort”, or substitute for the U.S. Supreme Court, because several of the justices were disqualified. Thus, the Supreme Court was unable to meet the requisite quorum of six justices to hear the case and instead handed it down to the second Circuit Court.
 
9
Brown Shoe Co. v. U.S., 370 US 294 (196).
 
10
U.S. v. General Dynamic Corp., 415 U.S. 486 (1974).
 
11
Brown Shoe Co. v. U.S., 370 US 294 (1962), p. 345.
 
12
12 See FTC v. Consolidated Foods Corp., 380 U.S. 592 (1965); U.S. v. Falstaff Brewing Corp., 410 U.S. 526 (1973); and FTC v. Proctor & Gamble Co., 386 U.S. 568 (1967).
 
13
FTC complaint against Kellogg, General Mills, General Foods, and Quaker Oats, Docket No. 8883, filed 26 April, 1972. The Quaker Oats Company was eventually dropped from the complaint.
 
14
U.S. v. Arnold Schwinn & Co. et al. 388 U.S. 365 (1967).
 
15
Robert L. Heibroner, “The American Plan,” New York Times Magazine, January 25, 1976, p. 38.
 
16
For additional explanations see Hjalmarsson (1991).
 
17
For further analyses see Klodt (1990) and Geroski and Jacquemin (1985).
 
18
See for example, “There’s no Limit to Google’s Power,” New York Times, April 28, 2016, accessed on May 25, 2017 at https://​www.​nytimes.​com/​roomfordebate/​2016/​04/​28/​is-google-a-harmful- monopoly/theres-no-limit-to-googles-market-power; and “Amazon’s Growing Power in the U.S. Economy,” Forbes, November 30, 2016, accessed on May 25, 2017 at https://​www.​forbes.​com/​sites/​lauraheller/​2016/​11/​30/​amazons-growing-stranglehold-on-the-us- economy/#17842257eb40.
 
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Metadata
Title
Industrial Organization and the Organization of Industries: Linking Industry Structure to Economic Performance
Author
David B. Audretsch
Publication date
16-01-2018
Publisher
Springer US
Published in
Review of Industrial Organization / Issue 4/2018
Print ISSN: 0889-938X
Electronic ISSN: 1573-7160
DOI
https://doi.org/10.1007/s11151-018-9615-2

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