Preface ix Introduction xi CHAPTER 1 Incentives Matter 1 1.1 Managerial Individualism 2 1.2 Demand Curves 5 1.3 Elasticity 12 Notes 16 CHAPTER 2 Cost and Choice 19 2.1 Opportunity Cost 20 2.2 Diminishing Marginal Returns 22 2.3 The Planning Horizon 26 2.4 Cost vs. Waste 28 Notes 29 CHAPTER 3 Market Exchange 33 3.1 Market Equilibrium 33 3.2 Comparative Statics 36 3.3 Information Economics 41 Notes 44 CHAPTER 4 Prices and Economic Calculation 47 4.1 Entrepreneurship 48 4.2 The Firm 52 4.3 Price Discrimination 54 4.4 The Knowledge Problem 58 4.5 Internal Markets 60 Notes 63 CHAPTER 5 Competition and the Market Process 67 5.1 Market Concentration 67 5.2 Collusion 69 5.3 Market Contestability 72 5.4 Monopoly Power 77 Notes 78 CHAPTER 6 Capital Theory and Recalculation 81 6.1 Microclimate 82 6.2 Unemployment 84 6.3 Recalculation 90 Notes 93 CHAPTER 7 Public Finance 97 7.1 Taxation 97 7.2 Bonds 101 7.3 Banking 104 7.4 Saving 107 7.5 Real Business Cycles 108 7.6 National Income Accounting 109 Notes 112 CHAPTER 8 Monetary Theory 117 8.1 Inflation 118 8.2 Monetary Policy 126 8.3 Monetary Regimes 133 8.4 Macroeconomic Fluctuations 135 Notes 137 CHAPTER 9 Fiscal Policy 141 9.1 The Great Depression 142 9.2 Fiscal Stimulus 144 9.3 Expansionary Fiscal Contractions 150 9.4 Confidence 153 9.5 Laissez-faire 155 9.6 The Phillips Curve 156 Notes 158 CHAPTER 10 International Economics 163 10.1 Globalisation and Trade Theory 164 10.2 Balance of Payments 168 10.3 Foreign Exchange Markets 170 10.4 Currency Regimes 175 Notes 179 CHAPTER 11 Behavioural Economics 183 11.1 Behavioural Anomalies 184 11.2 Market Efficiency 188 Notes 194 CHAPTER 12 Global Prosperity 199 12.1 Growth Theory 199 12.2 Happiness 202 12.3 Economic Freedom 206 12.4 Public Choice Theory 208 12.5 Transition Economics 215 Notes 223 Bibliography 231 Index 000

Markets for Managers helps managers to see markets in a new light, to appreciate how they operate, and to reflect on their results. This important resource shows not only how markets operate but why they are remarkable accomplishments of human interaction. Written in a highly accessible style, Markets for Managers incorporates a diverse and applied perspective in economics and deals in a comprehensive manner with micro- and macroeconomics from a global perspective. Written by Prof. Anthony J. Evans, the book brings to life the major contributions in economics, and some of the most important debates surrounding the topic. This valuable resource offers an understanding of how markets work in the real world, and includes insights on how they fail. Most importantly, Markets for Managers contains information on how managers can employ markets as a management tool – both in terms of internalising the insights into their everyday routines, and in terms of adopting processes that can be applied across the organisation. Evans shows how markets generate social prosperity and how managers can use markets – and the principles on which they rest – to generate value. The book covers the key foundations of economic analysis and shows how to apply them to specific concepts such as economic value added, price discrimination, and value- based pricing. Markets for Managers encompasses the bigger economic picture and includes biographies of famous economists, refers to the seminal books and articles, and highlights the key moments in economic history. Evans offers examples of market failure, such as monopolies, asymmetric information and behavioural anomalies, and explains why these failures can in fact strengthen the case for markets. Managers, financial professionals, and researchers will find Markets for Managers to be a substantial yet approachable guide that fills in some of the holes, and stretches out a broad and serious look at the discipline of economics.