Economics of Strategy / Edition 4

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Overview

Sound strategic management is dependent on a set of business principles that apply to all sectors of the economy. Besanko, Dranove, Shanley, and Schaefer'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 circumstances.

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

Economics 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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Editorial Reviews

From the Publisher
“…the book seeks to supply an economic lens for viewing the broad sweep of the strategic activities of the firm.” (Times Higher Education Supplement, Thursday 28th February 2008)
Booknews
Details both the external market environment of firms and their internal organization, for MBA students, advanced undergraduates, students in executive programs, and practicing managers. After a primer on economic concepts for strategy, four sections address the boundaries of the firm; competitive strategy from the perspective of industrial organization economies; strategic positioning and dynamics; and topics associated with internal organization. Boxes illustrate economic models with cases from real companies. Annotation c. Book News, Inc., Portland, OR (booknews.com)
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Product Details

  • ISBN-13: 9780471679455
  • Publisher: Wiley, John & Sons, Incorporated
  • Publication date: 8/7/2006
  • Edition description: REV
  • Edition number: 4
  • Pages: 632
  • Product dimensions: 8.33 (w) x 10.18 (h) x 1.05 (d)

Meet the Author

David Besanko, PhD, is the Alvin J. Huss Distinguished Professor of Management and Strategy at the Kellogg School of Management at Northwestern University. He received his PhD in Managerial Economics and Decision Sciences and his AB in Political Science from Ohio University. He has received grants from the National Science Foundation and from the Citicorp Behavioral Science Research Council to support this research.
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Table of Contents

Introduction Strategy and Economics 1

Pt. 1 Economic Foundations of Strategy

1 Basic Microeconomic Principles 11

2 Economies of Scale and Scope 41

3 Agency and Coordination 73

4 The Power of Principles: A Historical Perspective 97

Pt. 2 Firm Boundaries

5 The Vertical Boundaries of the Firm 119

6 Organizing Vertical Boundaries: Vertical Integration and Its Alternatives 150

7 Diversification 175

Pt. 3 Market and Competitive Analysis

8 Competitors and Competition 205

9 Strategic Commitment 238

10 The Dynamics of Pricing Rivalry 264

11 Entry and Exit 299

12 Industry Analysis 327

Pt. 4 Strategic Position and Dynamics

13 Strategic Positioning for Competitive Advantage 359

14 Sustaining Competitive Advantage 410

15 The Origins of Competitive Advantage: Innovation, Evolution, and the Environment 441

Pt. 5 Internal Organization

16 Performance Measurement and Incentives in Firms 469

17 Strategy and Structure 507

18 Environment, Power, and Culture 536

Glossary 563

Index 573

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  • Anonymous

    Posted March 31, 2007

    for economists and managers

    This is neither a book on microeconomics nor on management: its a cross-over. Its an economic treatment of management strategy, i.e. using economic reasoning and analysis for strategic purposes. You dont need any prior studies in economics besides general introductory studies, say a first year course. Its is not mathematical so you dont need that prerequisite either. It is not a 'how-to' book on either strategy nor management, it mainly adds some theoretical flesh to the bones of practical management, and makes you see business strategy from an economist's perspective. Thus it is most suited to economics and/or management students. Additionally, it is reader-friendly and well done.

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