e-book
Managerial Economics and Business Strategy
Thanks to feedback from users around the world, Managerial Economics and Business
Strategy remains the top selling managerial text in the market. I am grateful to
all of you for allowing me to provide this updated and improved product. Before
highlighting some of the new features of the seventh edition, I would like to stress
that the fundamental goal of the book—providing students with the tools from
intermediate microeconomics, game theory, and industrial organization that they
need to make sound managerial decisions—has not changed.
This book begins by teaching managers the practical utility of basic economic
tools such as present value analysis, supply and demand, regression, indifference
curves, isoquants, production, costs, and the basic models of perfect competition,
monopoly, and monopolistic competition. Adopters and reviewers also praise the
book for its real-world examples and because it includes modern topics not contained
in any other single managerial economics textbook: oligopoly, penetration
pricing, multistage and repeated games, foreclosure, contracting, vertical and horizontal
integration, networks, bargaining, predatory pricing, principal–agent problems,
raising rivals’ costs, adverse selection, auctions, screening and signaling,
search, limit pricing, and a host of other pricing strategies for firms enjoying market
power. This balanced coverage of traditional and modern microeconomic tools
makes it appropriate for a wide variety of managerial economics classrooms. An
increasing number of business schools are adopting this book to replace (or use
alongside) managerial strategy texts laden with anecdotes but lacking the microeconomic
tools needed to identify and implement the business strategies that are
optimal in a given situation.
This seventh edition of Managerial Economics and Business Strategy has been
thoroughly updated but retains all of the content that made previous editions successful.
The basic structure of the textbook is unchanged.
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