Theorists in the field of industrial organization economics are beginning to develop formal models that are in many ways consistent with the assumptions and concepts of Alderson's general theory of marketing. This article evaluates Alderson's concepts of market heterogeneity, transactions, organized behavior systems, and sorting functions as they may relate to the recent work of organization economics theorists. An extended example is presented comparing Alderson's theory with Kenney and Klein's (1983) conclusions concerning block booking marketing arrangements. The new work in industrial organization economics may provide a framework for further conceptualization and justification of Alderson's general theory by marketing scholars.
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