| Article ID: | iaor201111371 |
| Volume: | 36 |
| Issue: | 3 |
| Start Page Number: | 285 |
| End Page Number: | 292 |
| Publication Date: | Dec 2011 |
| Journal: | Journal of Productivity Analysis |
| Authors: | Raa Thijs |
| Keywords: | organization |
In this paper I interrelate productivity analysis and the theory of industrial organization. A proposition proves that an industrial organization is efficient if and only if it is supportable in the entry‐proofness sense. Industrial performance is decomposed in efficiency and technical change terms as well as an industrial organization component. The performance measure is shown to be consistent with the Solow residual and Malmquist productivity indices for its components are provided.