Includes bibliographical references and index.

Contents: Basic concepts: Introduction -- Economists' view of behaviour -- Markets, organisations and the role of knowledge -- Managerial economics: Demand -- Production and cost -- Market structure -- Pricing with market power --Economics of strategy: Game theory -- Incentive conflicts and contracts -- Designing organizational architecture: Organizational architecture -- Decision rights; the level of employment -- decision rights: Bundling tasks into jobs ans subunits -- Attracting and retaining qualified employees -- Incentive compensation -- Individual performance evaluation -- Divisional performance evaluation -- Application of organizational architecture: Corporate governance -- vertical integration and outsourcing -- Leadership: motivating change within organizations -- Understanding the business environment: The economics of regulations -- Ethics and organizational architecture -- Organizational architecture and the process of management innovation.