Managerial Economics

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This new version of the text first published in 1989 stays true to the aims of the first two editions. It provides a clear introduction to Managerial Economics for students who have no previous background in economic analysis and at the same time develops the analysis to a level that is appropriate for second or third year undergraduates or for postgraduate students who are taking the subject for the first time. The text shows how economic analysis can be of relevance to business decision-making without making pretentious and unjustified claims for its practical application. As the boundaries between economic analysis and other business disciplines have become blurred, and as economics has made an increasing contribution to the study of marketing and business strategy, so it becomes possible to link the different subjects. This text includes material on: * 'The marketing mix' and decisions associated with it. * Game theory. * The evolving contribution of economics to the analysis of business strategy - from Porter's work on the structural analysis of industries to the resource-based perspective. * Network industries and the information economy. * Transactions cost analysis and its applications. This book is primarily directed towards second and third year undergraduate students of business, management or accounting, who have already completed a basic introductory course in economics. However, it does not assume any prior knowledge and can also be used as a first introduction to managerial economics for postgraduate or post-experience students.