The fourth edition of this textbook in managerial economics has been revised and updated and the expanded topics reflect changes in the literature since the previous edition, including transactions cost analysis, contracting and incentives, and strategic decision theory. Managerial Economics, fourth edition has been designed for ease of use by European students and lecturers and is core reading for those studying the economic theory behind business management and the business environment in which firms operate. It includes emphasis on European examples of real world business situations, boxed case studies relating theory to practice and European Union regulatory practice. The end of the book includes questions to accompany individual chapters and further reading lists.