Thanks to feedback from users around the world, Managerial Economics and Business Strategy remains the top selling managerial text in the market and I am grateful to all of you for allowing me to provide this updated and improved product. Before highlighting some of the new features of the sixth edition, I would like to stress that the fundamental goal of the book—providing students with the tools from intermediate microeconomics, game theory, and industrial organization that they need to make sound managerial decisions—has not changed.

This book begins by teaching managers the practical utility of basic economic tools such as present value analysis, supply and demand, regression, indifference curves, isoquants, production, costs, and the basic models of perfect competition, monopoly, and monopolistic competition. Adopters and reviewers also praise the book for its real-world examples and because it includes modern topics not contained in any other single managerial economics textbook: oligopoly, penetration pricing, multistage and repeated games, foreclosure, contracting, vertical and horizontal integration, networks, bargaining, predatory pricing, principal–agent problems, raising rivals' costs, adverse selection, auctions, screening and signaling, search, limit pricing, and a host of other pricing strategies for firms enjoying market power. This balanced coverage of traditional and modern microeconomic tools makes it appropriate for a wide variety of managerial economics classrooms. An increasing number of business schools are adopting this book to replace (or use alongside) managerial strategy texts laden with anecdotes but lacking the microeconomic tools needed to identify and implement the business strategies that are optimal in a given situation.

This sixth edition of Managerial Economics and Business Strategy retains all of the content that made previous editions a success, but adds a number of new class-tested features. These include enhanced pedagogical features such as chapter learning objectives, new and updated inside business applications, additional end-of-chapter problems, better prose, and updated data.

While all material has been updated and improved where appropriate, the basic structure of the textbook is unchanged.