Review of Industrial Organization 19: 383–405, 2001.
© 2001 Kluwer Academic Publishers. Printed in the Netherlands.
Do American and European Industrial Organization
Austrian Institute of Economic Research, Vienna, Austria
School of Economics, Georgia Institute of Technology, Atlanta, Georgia, U.S.A.
DENNIS C. MUELLER
Department of Economics, University of Vienna, Austria
Department of Food Economics, University of Kiel, Germany
Abstract. This paper compares results from two surveys among American and European indus-
trial organisation (IO) economists on various IO and broader economic issues. Although differences
between the two groups are generally rather small, some systematic differences seem to exist. These
differences are more pronounced when judgments about the efﬁcacy of government policies and the
workings of the market are concerned than when judgments about methodology and the present and
future state of the IO ﬁeld are concerned. American IO economists tend to exhibit more conﬁdence
in the market’s capability to allocate resources than their European counterparts.
Key words: Europe and U.S.A., industrial organisation economists, survey.
JEL Classiﬁcations: L0, D0.
One of the differences between Americans and Europeans that is most noticeable
– at least to an economist – concerns attitudes toward government and government
intervention in market processes. As a broad generalization, Europeans are more
likely to favor state ownership of enterprise, subsidies for enterprise, government
regulations of competition including price ceilings and ﬂoors, vertical restrictions
on trade and even cartel agreements as ways for solving “market failures” and
improving social welfare. These differences are evident in both the rhetoric and
ideologies of Europeans and European politics, and in the policies in place. For ex-
ample, rent controls have never been common in the United States and today have
almost completely disappeared, while they are alive and well across the capitals of
Corresponding author: Dennis C. Mueller, Department of Economics, BWZ, University of
Vienna, Brünnerstr. 72, A-1210 Vienna. E-mail: email@example.com