In its Fourth Edition, this textbook explores how economic activity is organised from a new institutional economics perspective. Using transactions costs as a continuing theme, the book delivers the necessary skills to understand the evolution of organisational forms and the strengths and weaknesses of different varieties of private and public governance. The importance of entrepreneurship is emphasised throughout. Public policy concerning competition, regulation and the public utilities is used to illustrate the involvement of subjective judgements about transactions costs in all types of...

In its Fourth Edition, this textbook explores how economic activity is organised from a new institutional economics perspective. Using transactions costs as a continuing theme, the book delivers the necessary skills to understand the evolution of organisational forms and the strengths and weaknesses of different varieties of private and public governance. The importance of entrepreneurship is emphasised throughout. Public policy concerning competition, regulation and the public utilities is used to illustrate the involvement of subjective judgements about transactions costs in all types of...