Sutton eschews the 'possibility' results of the theoretical product differentiation literature, and instead focusses on robust comparative statics predictions. These predictions are then confronted with a thorough investigation of twenty food and drink product markets in six countries. The result is a unique and informative mixture of theory and evidence.
Robert Porter, Professor of Economics, Northwestern University
A clear, concise blending of theory and empirical analysis. The international comparisons of the industries examined shed new insights into the common and unique organizational characteristics of the industries studied.
Willard F. Mueller, Research Professor, The University of Wisconsin
An excellent piece of empirical work by a leader in industrial organization. Econometric tests and industry studies are carefully guided by sound theory. A must reading for students in the field.
Jean Tirole, Scientific Director at the Institut d'Economie Industrielle, Researcher at CERAS (of the Ecole Nationale des Ponts et Chaussées), and Visiting Professor at MIT
This study represents a simple yet fundamental and deep test of modern game theory models, illustrating the process by which entry and exit bring the population of firms in a market to the equilibrium number in light of that market's mode of competition.
Richard E. Caves
