Summary of Economics of Strategy 6th edition, Besanko et al.
Asterisk Means example
(Q) means Question
Associations between paragraphs
Chapter 2: The Horizontal Boundaries of the Firm
Important concepts in economy:
- Horizontal bounda
1. It has been said that Porter's five-forces analysis turns antirust law on its head. What do
you think this means?
The framework of Porter's doesn't take the role of the Government into account while in reality
the government as a regulator can affect t
1. Describe the vertical chain for the production of motion pictures (film). Describe the
extent of vertical integration of the steps in this chain.
(Production - distribution - consumption)
- Major studios/Independent production companies (wr
1. What is the Property Rights Theory of the firm? Is this theory consistent with the theories of
vertical integration describe in chapter 3?
The property rights theory of the firm proposes that integration determines the ownership an
1. Why are the Cournot and Bertrand models considered static? What aspects of real world
behavior might be missing in static models?
Because they assume firms to behave simultaneously
Cournot (Bertrand) assumptions
Firms have market power, i.e. each firms
1. Why are the concepts of own(?) and cross-price elasticities of demand essential to
competitor identification and market defenition?
Cross-price elasticities is the case when products of different firms are substitutes. It states what
happens with the d
Organisation and Timing
Key Steps For NPD Success
Ensure NPD goals and objectives:
Fit with strategy
Are adequately resourced
Are well prioritised
Copyright 2006 Biz/ed
Sales and Marketing
Research and Development
Finance and Accounts
Introduction to Strategy and
Department of Economics/USE
Chair of Strategy, Organisation, & Governance
Notes for lecture of 13 November 2013
Professor Hans Schenk
ECB2SO: The team
The Chair: Strategy, O
Strategic Positioning for Competitive Advantage
Indentifying important concepts for competitive advantage in a market. The chapter is divided in
1) Defining competitive advantage (firm must create more value than its rivals);