Covering the broad sweep of modern economics and strategy research, this comprehensive book broke new ground in its original edition by applying modern economic principles to study the firm's strategic position. Completely updated and revised, this new edition integrates recent insights from the theory of the firm, industrial organization, and strategy research, while building upon a strong theoretical and empirical foundation familiar to academics working in economics and strategy.
New co-author Scott Schaefer adds his expertise on organizational economics
New chapters on performance evaluation and strategic fit
Hundreds of examples ground theory in the everyday activities of the firm and show how the economic principles of strategy actually work
A unique, modern treatment of topics

From the Back Cover

DISCOVER THE ART OF STRATEGIC THINKING

This Third Edition of Besanko, Dranove, Shanley, and Schaefer’s highly acclaimed text blends economic theory with the latest thinking on strategy. The result is an innovative and highly effective framework for understanding the strategic activities within a firm.

Offering in-depth, modern coverage of a broad range of topics, the Third Edition features expanded material on personnel economics, revised treatment of culture and power, in-depth coverage of competition in markets with network effects, detailed discussion of the opinion theory of investment, and updated coverage of diversification.

HIGHLIGHTS OF THE THIRD EDITION

Presents economic principles without overemphasizing the math.
Rigorous treatment of organizational topics such as structure and culture enables you to experience the full scope of strategic thinking.
The authors use Porter’s Five Focus as a tool for organizing industry analysis, building on the coverage of industrial organization and game theory. The text also considers the Value Net, another tool for organizing industry analysis.
Includes coverage of make or buy decisions (Chapters 2-4) and benefit and cost advantage and sustaining advantage (Chapter 12-14).
Fascinating examples bring the economic models to life. Many of the examples involve businesses outside the United States.

"About this title" may belong to another edition of this title.

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