This Third Edition of Besanko, Dranove, Shanley, and Schaefer’s highly acclaimed text blends economic theory with the latest thinking on strategy. The result is an innovative and highly effective framework for understanding the strategic activities within a firm. Offering in-depth, modern coverage of a broad range of topics, the Third Edition features expanded material on personnel economics, revised treatment of culture and power, in-depth coverage of competition in markets with network effects, detailed discussion of the opinion theory of investment, and updated coverage of diversification. Highlights of the third edition : Presents economic principles without overemphasizing the math. Rigorous treatment of organizational topics such as structure and culture enables you to experience the full scope of strategic thinking. The authors use Porter’s Five Focus as a tool for organizing industry analysis, building on the coverage of industrial organization and game theory. The text also considers the Value Net, another tool for organizing industry analysis. Includes coverage of make or buy decisions (Chapters 2-4) and benefit and cost advantage and sustaining advantage (Chapter 12-14). Fascinating examples bring the economic models to life. Many of the examples involve businesses outside the United States.