Includes bibliographical references and index.

Contents: 1. Basic concepts: Introduction -- Economists' view of behaviour -- Exchange of markets -- 2. Managerial economics: Demand -- Production and cost -- Market structure -- Pricing with market power -- Economics of strategy: Creating and capturing value -- Economics of strategy: game theory -- Incentive conflicts and contracts -- 3. Designing organizational architecture: Organizational architecture -- Decision rights; the level of employment -- Decision rights: Bundling tasks into jobs and subunits -- Attracting and retaining qualified employees -- Incentive compensation -- Individual performance evaluation -- Divisional performance evaluation -- 4. 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 -- Index --