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 option theory of investment and updated coverage of diversification.