Articles by Anindya Sen

Domestic firms in India which once enjoyed the benefit of sheltered markets are increasingly facing competition from global giants in the 1990s. Whatever route Indian firms take to deal with competition from MNCs, it is imperative for them to keep track of global strategies of these firms. Often the strategies undertaken at the local level are only part of the global strategies, because it is difficult for any firm to allow significant differences in approach in different markets. After the second coming of the international varieties of Cola drinks, the market has witnessed a highprofile tussle between the global giants - Coca-Cola and PepsiCo. This tussle and the respective problems faced by the two firms in the Indian market are extremely instructive. This paper argues that the events in the Indian soft drinks market can only be explained with reference to the global fight between Coke and Pepsi and their respective global strategies. Moreover, these two firms are so dissimilar that their relative successes and failures can throw light on some of the important issues in industrial organisation.

Anindya Sen Entry strategies are the flip side of entry deterrence strategies. While existing firms would like to discourage entry, new firms are attracted into an industry precisely by the success of incumbents in keeping out competition and earning super-normal profits. It is shown in this paper that a prospective entrant can choose between various modes of entry. The entrant also has to decide on the scale of entry. While entry is a one-shot proposition, the process of entry itself and the various considerations that determine entry have dynamic connotations that can be ignored only at the peril of endangering the long-term viability of the new enterprise.

Industrial Concentration and Performance by Uma S Kambhampati; Oxford University Press, Delhi, 1996; pp xii + 212, Rs 395.
THE industrial sector in most nations plays a major role in determining the rate and nature of growth. In India, organised industry in the private sector was for a long time strait-jacketed by the licensing regime. The macro-objectives of the successive plans were sought to be achieved through a system of licences, controls and incentives to the small- scale sector. In line with this 'macro- mindset', only sporadic investigations were carried out on the structure, conduct and performance of Indian industries This has led to a situation where macro-policies - even policies specifically targeted at the industrial sector have been formulated with very little knowledge of actual industry- level conditions.

Demystifying Game Theory Anindya Sen Game Theory and Economic Modelling by David M Kreps; Clarendon Press, Oxford, Rs 130.
THE 1970s have seen the rediscovery of game theory and the marriage of game theory with the economics of uncertainty and information has given birth to a very large body of work. However, these developments in game theory have bypassed many academicians, even in the economics profession, and those who did not pick up game theory have remained deeply., suspicious of the theory. In recent years, a number of books on game theory have become available, as well as some quite useful chapters devoted to game theory in various books, like Tirole's The Theory of Industrial Organisation and the first volume of the Handbook of Industrial Organisation. But this material is usually accessible only to the technically sophisticated reader. Kreps has now written a book which attempts to provide the uninitiated with sufficient insights to make independent judgments on game theory. The book makes no prior technical demands on its reader, though it requires careful reading. Throughout the book, Kreps employs numerous examples to illustrate his points and sometimes give the reader a flavour of those arguments that cannot be developed fully within the limitations of the book. He takes pains to highlight both the achievements and failures of game theory. Since he has been at the forefront in the development of both concepts and applications, Kreps is in a unique position to come to the defence of game theory, and also act as the Devil's advocate.