Includes bibliographical references and index.

Introduction -- Economist's view of behavior -- Markets, organizations, and the role of knowledge -- 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 -- Organizational architecture -- Decision rights : the level of empowerment -- Decision rights : bundling tasks into jobs and subunits -- Attracting and retaining qualified employees -- Incentive compensation -- Individual performance evaluation -- Divisional performance evaluation capstone case study on organizational architecture : Arthur Anderson LLP -- Corporate governance -- Vertical integration and outsourcing -- Leadership : motivating change within organizations -- Understanding the business environment : the economics of regulation -- Ethics and organizational architecture -- Organizational architecture and the process of management innovation.