Economics of organizations and markets combines insights from two fields in Economics: Organizational Economics and Industrial Economics. Organizational Economics focuses on the organizational design of firms, which includes a firm’s motivation of its personnel, its hiring and firing policy and make or buy decisions. Industrial Organization considers the interaction of firms in markets, including their decisions with respect to price, quantity, quality, product positioning and advertising.
The book consists of six parts. Each part is divided into three chapters and starts with a chapter devoted to game theoretical techniques. The other two chapters of the part will examine applications to Organizational Economics and Industrial Economics respectively. Each chapter in the book contains a case study, which helps the reader to understand the practical side of the game theory analysis. It also motivates the student to take a step further by presenting the results of the empirical tests established in the chapter. This indicates both the strengths and the limits of game theory.
Students at university in the second or third bachelor year in the fields of Economics and Business Economics.