The “old” approach of Industrial Organisation, of which the Harvard approach described above is one articulation, was primarily interested in empirical research. Its representatives were interested in describing firm behaviour by estimating equations that were based on micro data as described above. More theoretically inclined economists tended to describe the “old” industrial organisation as basically atheoretical in nature: science was here misunderstood as consisting of measurement, sound theoretical foundations why certain equations were estimated in the first place were often lacking. Much of this has changed with the advent of game theory in industrial organisation. This is true to such a degree that one can talk of a “new industrial organisation” that is much more theoretically inclined than its predecessor.
Making European Merger Policy More Predictable
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