Market Theory Redefines Industry Dynamics, Shifts Focus to Supply-Demand Relationships
The article discusses the concept of market theory, which looks at both supply and demand in industries. Traditional industrial organization theory focuses mainly on suppliers, while market theory considers the relationship between supply and demand. This is important for understanding how industries perform over time. Market theory is different from traditional price theory because it focuses on market structures and processes as time goes on, rather than just on prices and quantities of output.