Managerial Economics and Organizational ArchitectureThis approach to managerial economics takes models from recent economic research and applies them to the internal structure of the firm. After teaching basic applied economics, the authors look inside the firm and apply this analysis to management decision making. The general model used for this application is organizational architecture, which consists of three aspects of corporate organization: the assignment of decision rights within the company; methods of rewarding individuals; and the structure of systems to evaluate the performance of both individuals and business units. These three elements must balance in an organization. |
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Managerial Economics and Organizational Architecture James A. Brickley,Clifford W. Smith,Jerold L. Zimmerman No preview available - 2004 |
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Airbus analysis assets average cost behavior benefits Boeing Chapter choice choose compensation competitive consumers contracting costs corporate cost curves customers decentralization decision rights demand curve discuss economic effects efficient effort employees Enron equilibrium evaluation example expected factors Figure firm firm's function given important incentive problems income increase indifference curve individual industry input instance investment isocost isoquant labor long-run average cost lower managerial managers manufacturing marginal cost marginal product marginal revenue maximize Merrill Lynch million motivate Nash equilibrium opportunity cost optimal organization organizational architecture output owners payoffs percent performance potential profits purchase quantity reduce regulation returns to scale risk sell shareholders slope Source specific knowledge strategy suppliers supply tickets tion total cost trade transactions transfer price units utility Wal-Mart Wall Street Journal