 Industrial Organization. In economics, industrial organization or industrial economy is a field that builds on the theory of the firm by examining the structure of hand. Therefore, the boundaries between firms and markets. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition. It analyzes determinants of firm and market organization and behavior as between competition and monopoly, including from government actions. There are different approaches to the subject. One approach is descriptive in providing an overview of industrial organization, such as measures of competition and the size concentration of firms in an industry. A second approach uses micro-economic model to explain internal firm organization and market strategy, which includes internal research and development along with issues of internal reorganization and renewal. The third aspect is oriented to public policy as to economic regulation, antitrust law and, more generally, the economic governance of law in defining property rights, enforcing contracts, and providing organizational infrastructure. The subject has a theoretical side and a practical side. According to one textbook, on one plane the field is abstract, a set of analytical concepts about competition and monopoly. On a second plane the topic is about real markets, teeming with the excitement and trauma of struggles among real firms shared, W, 1985, 1. The extensive use of game theory in industrial economics has led to the export of this tool to other branches of micro-economics, such as behavioral economics and corporate finance. Industrial organization has also had significant practical impacts on antitrust law and competition policy. The development of industrial organization as a separate field goes much to Edward Chamberlain, Joan Robinson, Edward S. Mason, J. M. Clark, Joe S. Payne and Paolo Salas-Leibnay, among others. Assessments of the subject have differed over time. The crevice to a related research volume in 1972 remarked on whether industrial organization that all is not well with this in this once flourishing field is regularly apparent. The response came 15 years later, TOAS verdict is that industrial organization is alive and well and the queen of applied micro-economics.