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The first and only text for managerial economics to be organized around Oliver Williamson's basic paradigm, TRANSACTIONS AND STRATEGIES: ECONOMICS FOR MANAGERS takes a modern approach to managerial economics that is uniquely suited to today's business students. Organized around the idea that transactions are the fundamental unit of economics and that their governance by markets, contracts, or organizations is the most important economic question for businesses to cope with, this revolutionary text brings the course materials for managerial economics up to date with the theory and practice of the field. The first half of the text covers the familiar economic theory of markets when transactions are standardized while the second half focuses on contracts, risk and asymmetric information, and organizational design. Vivid examples found in each chapter highlight important concepts and help your students become informed business decision makers.

Robert J. Michaels,

Robert J. Michaels is a Professor of Economics at California State University, Fullerton, and Daniel Haan Research Fellow in Law and Economics. He is also an independent consultant to the electricity and natural gas industries. He holds an A.B. from the University of Chicago and a Ph.D from the University of California, Los Angeles, both in economics. His past positions include Staff Economist at the Institute for Defense Analyses and Senior Advisor to Hagler Bailly Consulting (now PA Consulting). He is an Adjunct Scholar at the Texas Public Policy Foundaton, the Cato Institute, the Institute for Energy Research and the National Center for Policy Analysis. His research on electricity and gas restructuring, measuring and constraining market power, vertical integration, and renewable energy requirements has appeared in industry and scholarly journals including Public Utilities Fortnightly, The Electricity Journal, Regulation, Antitrust Bulletin, Review of Industrial Organization, and Energy Law Journal. He is also Co-Editor of Contemporary Economic Policy, a peer-reviewed journal of the Western Economic Association. He has advised state commissions, electric utilities, power marketers, natural gas producers, pipelines, public interest groups, and governments on regulatory and antitrust matters. He has testified before the Federal Energy Regulatory Commission, the California Public Utilities Commission, the Illinois Commerce Commission, and the U.S. House Subcommittee on Energy and Power.
  • NOBEL PRIZE-WINNING PARADIGM. This is the first and only text for managerial economics to be organized around the basic paradigm originated by Oliver Williamson (2009 Nobel Prize Winner in Economics): that transactions are the fundamental unit of economics, and that their governance by markets, contracts or organizations is the most important economic question for businesses to cope with.
  • REAL-WORLD RELEVANCE. The author devotes two entire chapters to the economics of contracts and risk and information in contracts. This coverage is crucial to today's business decision-makers and is not typically found in other managerial texts.
  • GLOBAL PERSPECTIVE. Vivid Introductions and What's Next sections frame each chapter's content with business examples from a variety of industries and nations to underscore the critical importance of transactions and strategy in business decision-making. Questions include: who operates the biggest machine in the world; what is the most reliable determinant of whether patients being treated for heart attack will live or die; what can a satellite photo of the African continent tell us about the costs of transactions?
  • CHECKPOINT QUESTIONS. Checkpoint questions at key intervals throughout the chapters ask students to recall important points and gauge how well they are mastering the basic chapter concepts.
  • DISCUSSION POINTS. For Further Thought questions throughout the chapters pose questions of greater computational difficulty or ask readers to consider a more open-ended question for discussion.
1 Reasoning with Economics: Models and Information.
2 Transactions and Institutions: The Building Blocks.
3 Markets.
4 Cost and Production.
5 Extreme Markets I: Perfect Competition.
6 Extreme Markets II: Monopoly.
7 Between the extremes: Interaction and Strategy.
8 Competition and Strategy.
9 Beyond Markets; Property and Contracts.
10 The Economics of Contracts.
11 Risk and Information in Contracts.
12 Organizations in Concept and Practice.
13 Organizational Design.
14 Vertical Relationships.
15 Employment Relationships.
16 Time, Risk and Options.
17 Conflict, Negotiation and Group Choice.
Aplia is an online learning solution that increases student engagement with automatically graded assignments and detailed explanations.

This Cengage solution can be seamlessly integrated into most Learning Management Systems (Blackboard, Brightspace by D2L, Canvas, Moodle, and more) but does require a different ISBN for access codes. Please work with your Cengage Learning Consultant to ensure the proper course set up and ordering information. For additional information, please visit the LMS Integration site.

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