To operate as a successful manager requires an economic way of thinking, in particular a clear focus on efficiency and the working of markets. The "Economics of Organizations and Strategy" integrates business strategy within an economics framework, to give an economic perspective on areas of business such as organizational behaviour, marketing, finance, human resources and operations management. The book opens with an in-depth treatment of key microeconomic theories and concepts. It then builds on these introductory topics to show how a firm's external business environment influences and constrains strategy formulation and behaviour, before moving on to analyse the firm as an organization. Drawing on microeconomic theories and concepts, variations in management structures are explained; for example, decision making hierarchies, reward systems and organizational boundaries. Its key features include: coverage of European competition policy, integration of economic and game theoretic models to demonstrate strategic conflict and cooperation, up-to-date business examples to demonstrate the application of theory in a 'real-world' context, exercises that encourage students to work through business problems relevant to a prospective management role, and a clear writing style that presents complex ideas in an accessible manner.