Economics of Organizations and Markets, 1st revised edition

How do employees respond to incentives? Which applicant is most attractive

when several apply to fill a job vacancy? Why and how do governments intervene

in markets?

Finding the right answers to these and other questions is of great importance

for managers and policy makers who want to fully understand the economics of

organizations and markets. Organizations and markets are vital institutions in all

modern societies.

This book examines how organizations and markets work and

how managers and governments can intervene to let them work better. Questions

like the above will be examined by applying tools from microeconomics – including

game theory, information

economics, and contract theory.

Economics of Organizations and Markets is aimed at students of economics

as well as of business. The text discusses how those tools can be applied to build

quantitative models that can provide convincing theory about the way organizations

and markets are organized. The insights obtained from the models will be

valuable to the professional careers of students.

This book contains the following key features: step-by-step analysis of quantitative

models, numerous real-world illustrations of the theory, a discussion of

the main features of European competition law, and end-of-chapter exercises that

are closely related to the models analyzed in the main text. In addition, each chapter

contains an in-depth case study which shows that the issues discussed in the

chapter are not just of theoretical interest but that they are relevant for decision

making in practice.

Sander Onderstal is associate professor in Industrial Organization

and Experimental Economics at the Faculty of

Economics and Business of the University of Amsterdam.

He has published broadly in international journals on subjects

like auctions, public procurement, incentive contracts,

experimental economics, and charitable fundraising.