Covering the broad sweep of modern economics and strategy research, this comprehensive book broke new ground in its original edition by applying modern economic principles to study the firm's strategic position. Completely updated and revised, this new edition integrates recent insights from the theory of the firm, industrial organization, and strategy research, while building upon a strong theoretical and empirical foundation familiar to academics working in economics and strategy. New co-author, Scott Schaefer adds his expertise on organizational economics. It includes new chapters on performance evaluation and strategic fit. Hundreds of examples ground theory in the everyday activities of the firm and show how the economic principles of strategy actually work. It is a unique, modern treatment of topics.