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CONTENTS

Preface

Chapter 1 : Introduction to Economic Systems Analysis and Assessment: Cost, Value, and Competition in Information and Knowledge Intensive Systems, Organizations, and Enterprises

1.1 Introduction

1.2 A Framework for Systems Engineering and Management

1.3 Theory of the Firm

1.4 Theory of the Consumer

1.5 The Interaction of the Theories of Firms and Consumers: Microeconomic Models of Economic Activity

1.6 Welfare or Normative Economics

1.7 Program and Project Management Economics

1.8 Contemporary Issues Concerning Information and Information Technology Economics

1.9 Economic Pitfalls in the Engineering of Systems

1.10 Summary

Chapter 2 : Production and the Theory of the Firm

2.1 Introduction

2.2 The Production Function

2.3 Multiproduct Firms and Multiproduct Production Functions

2.4 Classic Theory of the Firm

2.5 Imperfect Competition

2.6 Summary

Chapter 3 : The Theory of the Consumer

3.1 Introduction

3.2 Economic Utility Theory and Its Axioms

3.3 Properties of Utility Functions

3.4 The Fundamental Problem of the Consumer

3.5 Sensitivity and Substitution Effects

3.6 Summary

Chapter 4 : Supply–Demand Equilibria and Microeconomic Systems Analysis and Assessment Models

4.1 Introduction

4.2 Basic Supply–Demand Equilibrium for a Single Good

4.3 General Supply–Demand Equilibrium Conditions

4.4 Extensions to General Equilibrium to Include Market Interdependencies

4.5 Microeconomic Models

4.6 Summary

Chapter 5 : Normative or Welfare Economics, Decisions and Games, and Behavioral Economics

5.1 Introduction

5.2 Pareto Optimality under Perfect Competition Conditions

5.3 External Effects and Imperfect Competition: Public Goods

5.4 External Effects and Imperfect Competition: Nonindependent Production and Consumption

5.5 Welfare Maximization and Social Choice

5.6 Summary

Chapter 6 : Cost–Benefit and Cost–Effectiveness Analyses and Assessments

6.1 Introduction

6.2 The Time Value of Money

6.3 Identification of Costs and Benefits

6.4 The Identification and Quantification of Effectiveness

6.5 Summary

Chapter 7 : Cost Assessment

7.1 Model-Based Parameters for Productivity

7.2 Early Models for Estimation of Costs, Including Effort and Schedule

7.3 The Constructive Cost Model

7.4 Summary

Chapter 8 : Approaches to Investment Valuation

8.1 Microeconomics

8.2 The Investment Problem

8.3 Investment Valuation

8.4 Summary

Chapter 9 : Real Options for Investment Valuation

9.1 Nature of Options

9.2 Option Pricing Theory

9.3 Option Calculator

9.4 Strategic Metrics

9.5 Investment Decision Making

9.6 Value-Centered R&D

9.7 Summary

Chapter 10 : Contemporary Perspectives

10.1 Introduction

10.2 Evolutionary Economics

10.3 Path Dependence and Network Effects

10.4 Intellectual Capital

10.5 Value of Information

10.6 Investing in Humans

10.7 Summary

Index

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