Description: Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature over the past ten years and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S. Bain and his successors.
Review Quotes: " An excellent piece of empirical work by a leader in industrial organization. Econometric tests and industry studies are carefully guided by sound theory. A must reading for students in the field." --Jean Tirole, Scientific Director at the Institut d'Economie Industrielle, Researcher at CERAS (of the Ecole Nationale des Ponts et Chaussé es), and Visiting Professor at MIT.