Harvard School

The Harvard School or School of Thought at Harvard Business School is an approach to industrial economics research .

As part of the Harvard School approach, represented by Joe Bain , John Maurice Clark and William J. Baumol , among others , industries are examined from a descriptive-analytical or action-theoretical perspective, with potential competition being assumed to be the main determinant of good performance ( market result ) becomes. In contrast to the Chicago School , it can be perfectly acceptable for representatives of the Harvard School if the market result is achieved through potential competition. Above-average profits of individual companies are based on the one hand on high market shares due to market concentration and on the other hand on the protection of the market structure through market barriers . However, recent studies have refuted the relationship between market share and concentration.

See also : Chicago School (Economics)  and Austrian School

Bibliography

• Bain, Joe S .: Barriers to New Competition , 5th ed. 1971, Cambridge: Harvard University Press 1956
• Bain, Joe S .: Industrial Organization , 2nd ed., New York: John Wiley 1968
• Baumol, William J .; Panzar, John C .; Willig, Robert D .: Contestable Markets and the Theory of Industry Structure , New York 1982
• Clark, John Maurice: Competition as a dynamic Process , Westport / Con .: Greenwood 1961