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THE HANDBOOK OF INDUSTRIAL ORGANIZATION is mistitled. At the very least, the volumes produced by Richard Schmalensee and Robert Willig and their cadre of authors are a Two-hand book. Indeed, given the weight of each volume, it would be more appropriate to call the product a Two-arm book. (This is not to be confused with the two-armed bandit of probability theory and consumer search theory, although those aware of the $157 price tag might question whether I have too quickly dismissed the latter appellation.) The substantial product admirably achieves the goal the editors articulate: "Our purpose has been to provide reasonably comprehensive and up-to-date surveys of recent developments and the state of knowledge in the major areas of research in this field as of the latter part of the 1980's, written at a level suitable for use by non-specialist economists and students in advanced graduate courses." The two volumes of the Handbook will indeed " serve as a source, reference, and teaching supplement for industrial organization (or industrial economics)." "

Directions and Trends in Industrial Organization: A Review Essay on the Handbook of Industrial Organization