Providing a unified structure for analyzing theories and empirical discusses the empirical and theoretical implications of transaction cost analysis, game theory, contestability and information economics. The text is completely revised to include international trade material, a more game theoretic approach, new material on oligopoly and strategic behaviour, up-to-date examples, policies and legal issues, and more teaching aids (key questions at the beginning of each chapter, a new section with definitions of all the key words, definitions of key variables and listing of key equations).