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outcomes and payoffs and, 399

players and their actions, 398–399

repeated or one-shot competition,

401–402

sizing up of, 398–402

underlying rules and, 399

Competitive strategy

Apple proprietary platform

strategy, 413–414

bargaining and, 416–417

duration and, 425–426

entry deterrence and, 419–422

first-mover strategy and, 415

high-definition DVD standards

and, 411–413

international mineral lease and,

417–419

limit pricing and, 420–421

market entry and, 414–415

mixed strategies, 439–443

punitive strategy and, 423

repeated competition and,

422–426

reputation and, 422, 424–425

sequential competition and,

417–422

strategic entry barrier and, 421

tit-for-tat and, 424

two-tiered tender offers and,

410–411

Competitor communication, 401

Complementary goods, 83, 352

Complex procurements, 641

Computer solutions, linear

programming and, 730–733

Concentration, oligopoly and,

358–360

Concentration ratios, 353–355

Conditional probabilities, 545

Constant average cost, returns to

scale and, 247

Constant-cost industry, 294

Constant elasticity, 146

Constant returns to scale,

198–199, 242

Constrained optimization, 69–71

Lagrange multipliers and, 70–71

profits from multiple markets and,

69–70

supply commitment and, 69

Consumer experiments, 130

Consumer preferences and demand,

120–127

budget constraint and, 123

consumer’s problem and, 120–126

demand curves and, 126–127

indifference curves and, 120–123

marginal rate of substitution and,

124–126

optimal consumption and,

123–126

price-consumption curve and,

126–127

Consumer surplus, 47, 296

Consumer surveys, 129–131

Contingent contracts, 639–640

Contingent strategies, 422

Continuous variables, multiple-issue

negotiations and, 646–648

Contracts, contingent, 639–640

Controlled market studies

cross-sectional data and,

131–132

time-series data and, 132

Cooperative competitive

situations, 401

Coopetition, 352–353

Coordination

through teams, 599–600

via transfer prices, 600–601

Copyrights, 324, 466

Corporate control market, 612

Corporate culture, 595

Corporate governance reforms,

612–613

Cost, surveys and, 130

Cost advantages, entry barriers

and, 323

Cost allocation, 226–227, 261–262

Cost analysis

allocating costs, 226–227, 261–262

comparative advantage and

international trade, 244–247

cost of production and, 237–247

e-commerce and cost economies,

251–252

economies of scope, 252–253

fixed and sunk costs, 231–234

flexibility and innovation, 254–255

multiple products and, 259–261

opportunity costs and economic

profits, 227–231

optimal decisions and, 255–261

profit maximization with limited

capacity, 234–237

relevant costs and, 227–237

returns to scale, 247–252

shut-down rule and, 257–259

single product and, 255–257

Cost awareness, 589

Cost control incentives, 589

Cost function, 36, 237

Cost-plus contracts, 694

Cost uncertainty, international

business and, 510

Cournot, Augustin, 363

Cournot equilibrium, 364

Credit risks, predicting, 552–554

Cross-price elasticity, 89

Cross-sectional data, 131–132

Customized pricing and

products, 107

D

Data collection

consumer surveys and, 129–131

controlled market studies and,

131–132

uncontrolled market data and,

132–133

Data-driven business, 129

Data mining, 133

Day care, 296–302

Deadweight loss, 328, 448

Decentralization, 598–599

Decision making

alternative exploration and, 9–10

behavioral economics and, 17–18

building a new bridge and, 3

drug prices in Africa and, 15–16

economic view and, 13–18

examples of, 2–6

making choices and, 11–12

market entry and, 3

multinational production and

pricing and, 3

objective determination and, 7–8

oil exploration risks and, 4–5

predicting consequences

and, 10–11

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