JEAN TIROLE, MARKET POWER AND THE NEW INDUSTRIAL ORGANIZATION

Abstract

We make a twin analysis of Jean Tirole, the Nobel prize of Economics 2014, e The 2014’s Nobel prize in Economics to Jean Tirole, an author so central for outlining the analytical frontier of modern industrial organization (IO), gives the opportunity for a comprehensive reassessment of this IO. This retrospective starts with the initial studies about oligopoly, moving to studies that lead to the establishment of the IO, and culminates in the new theoretical framework for strategies and incentives under private information. The retrospective goes interwoven with Tirole’s work and pays heed to the impact of these ideas upon recent economic thought. Upon considering applied fields, we focus on international trade, and discuss potentials and pitfalls of a deductive science.