Economics of strategy

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 option theory of investment, and updated coverage of diversification.

Highlights on 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 Forces 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 (Chapters 12-14).
• Fascinating examples bring the economic models to life. Many of the examples involve businesses outside of the United States.

Authors : D. Besanko ; D. Dranove; M. Shanley; S. Schaefer

Contents

• Introduction: Strategy and economics
• Primer: Economic concepts for strategy

• Firm boundaries
  • The Evolution of the Modern Firm
  • The Horizontal Boundaries of the Firm: Economies of Scale and Scope
  • The Vertical Boundaries of the Firm
  • Organizing Vertical Boundaries: Vertical Integration and Its Alternatives
  • Diversification

• Market and competitive analysis
  • Competitors and Competition
  • Strategic Commitment
  • The Dynamics of Pricing
  • Rivalry Entry and Exit
  • Industry Analysis

• Strategic position and dynamics
  • Strategic Positioning for Competitive Advantage
  • Sustaining Competitive Advantage
  • The Origins of Competitive Advantage: Innovation, Evolution, and Environment
  • Agency and Performance Measurement

• Internal organization
  • Incentives and firms
  • Strategy and structure
  • Environement, power, and culture
  • Strategy and the general manager

• Glossary
• Name index
• Subject index