Economics of Strategy

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9780470484838: Economics of Strategy

In today's global recession, strong management of firms and organizations are of the utmost importance. Best-selling Economics of Strategy focuses on the key economic concepts students must master in order to develop a sound business strategy. Bringing economic theory and strategic analysis to life in an engaging and uniquely modern way, Besanko et al. have collaborated for over 15 years to build an introductory business course that combines basic concepts from economic theory of the firm and industrial organization with ideas from modern strategy literature.

The newly revised 5th edition offers more real-world applications to make materials studied in undergraduate Managerial Economics, Business Strategy, and Industrial Organization courses relevant. Armed with general principles, today's students—tomorrow's future managers—will be prepared to adjust their firms' business strategies to the demands of the ever-changing environment.

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From the Publisher:

Designed to engage and challenge students, this comprehensive book applies modern economic principles to study a firm's strategic position. The first section focuses on a company's boundaries, economics, transactions costs, economies of scale and scope and diversification. The second part deals with industrial organization economics such as market structure and dynamic price competition and concludes with four detailed industry analyses. The third segment covers strategic positioning and dynamics. The final section offers topics associated with internal organization. Contains hundreds of examples to illustrate how the economic principles of strategy apply to the actual business world.

From the Back Cover:

Follow the fundamentals of strategy.

Sound strategic management is dependent on a set of business principles that apply to all sectors of the economy. Besanko, Dranove, Shanley, and Schaeffer’s highly acclaimed Economics of Strategy, now in its Fifth Edition, gives you grounding in those fundamental strategic concepts that will serve you throughout your career, in any economic circumstance.

This book focuses on the economic principles that form the building blocks of strategy and details the tools you’ll need to perform comprehensive analysis of a firm’s economic strategy. This Fifth Edition features new and expanded discussion of topics, such as:

  •  Demand, costs, pricing, and game theory
  • Economies of scale, a concept fundamental to competition, entry, positioning and sustainability
  • The interface between the theory of the firm, organization design, and business strategy
  • Incentives—vital for understanding integration and organization structure
  • The boundaries of the firm
  • Positioning and sustaining advantage
  • Competition

New examples, drawn from real-world cases from the eighteenth century to present day, use the lens of business history to illustrate how these principles play out in the actual corporate arena.

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David Besanko, David Dranove,Mark Shanley,Scott Schaefer
ISBN 10: 0470484837 ISBN 13: 9780470484838
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