George Stigler and Richard Schmalensee (1968) define industrial economics as “the study of the behavior of firms and industries in the context of the economic environment in which they operate.” They argue that industrial economics is concerned with the “structure, conduct, and performance of firms and industries” and that it “examines the behavior of firms and industries in the context of the economic environment in which they operate.” They further state that industrial economics “focuses on the behavior of firms and industries in the context of the economic environment in which they operate, and the effects of their behavior on the economic welfare of society.”
