ECO 631 studies the economics of organizations and the economics of strategy. The first half of the course applies transactions costs and principal-agent theories to study the internal organization of the firm. Topics to be covered include the boundaries of the firm, corporate governance, choice of production process, and internal incentive systems. The second half of the course applies economic tools to the analysis of firm strategy. Topics to be covered include basic cost and demand conditions, economies of scale and scope, product differentiation, entry, exit and mobility conditions, price discrimination and commodity bundling, vertical control, and rivalry and strategy. Basic tools of game theory and asymmetric information are integral parts of this course.