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This updated and substantially revised second edition, like its predecessor, integrates a discussion of the latest theoretical developments with a comprehensive review of empirical work. Designed for upper-level undergraduates and graduates in industrial economics, there are complete treatments of the basic oligopoly models that are the bread and butter of theoretical industrial economics (Cournot, Bertrand, and extensions; horizontal and vertical product differentiation), of models of strategic behavior as well as of the determination of market and firm structure, and of the literatures on collusion, advertising, and the economics of innovation. Stephen Martin also provides a complete review of empirical tests of market performance, from Bain to the 'empirical renaissance' and beyond. contains expanded treatments of: hotelling's spatial model oligopoly with quality differentiation empirical evidence on entry and exit the analysis of firm structurepresents new discussions of: the classical view of the Cournot model strategic substitutability and complementarity representative consumer models of product differentiation the Kreps and Scheinkman model with product differentiation the New Empirical Industrial Organization, Solow residual, and event study approaches to the analysis of market power deterministic and stochastic models of research and developmentWith a more cohesive writing style, reduced size, additional invaluable information, and new problems to solve, the second edition of Advanced Industrial Economics is a key text in industrial economics. For more details and supplementary materials please visit http://www blackwellpublishers.co.uk/martin/ The paperback edition of this book is not available from Blackwell in the US or Canda