1. Microeconomics. We provide a concise overview of classic microeconomics including production and the theory of the firm; theory of the consumer; market equilibria and market imperfections; and normative or welfare economics, including imperfect competition effects and consumer and producer surplus. Chapters 2 to 5 contain this presentation. We also discuss some behavioral economics issues in this part, particularly in Chapter 5. These chapters are as follows:

• Chapter 1: Introduction to Economic Systems Analysis and Assessment
• Chapter 2: Production and the Theory of the Firm
• Chapter 3: The Theory of the Consumer
• Chapter 4: Supply–Demand Equilibria and Microeconomic Systems Analysis and Assessment Models
• Chapter 5: Normative or Welfare Economics, Decisions and Games, and Behavioral Economics

2. Program Management Economics. We discuss economic valuation of programs and projects including investment rates of return, cost–benefit and cost–effectiveness analysis, earned value management, cost structures and estimation of program costs and schedules, strategic and tactical pricing issues, and capital investment and options. There is one lengthy chapter in this part:

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

3. Cost Estimation. Cost estimation technologies involve precedented and unprecedented development, commercial off-the-shelf (COTS) software, software reuse, application generators, and fourth-generation languages. Contemporary cost estimation methods are evaluated in terms of openness of underlying models, platform requirements, data required as inputs, output, and accuracy of estimates provided by the models. COCOMO I and II, and COSYSMO are examples of a cost model, function point cost estimation models. Cost is estimated for systems of systems engineering. There is a single chapter in this part:

• Chapter 7: Cost Assessment

4. Strategic Investments in an Uncertain World. The final part of our economic systems analysis and assessment efforts is concerned with valuation of major investments such as technology portfolios and large-scale capacity expansions, as well as mergers and acquisitions. Here we provide a chapter that addresses alternative methods for valuation of firms including Stern–Stewart’s EVA, Holt’s CFROI, and various competing methodologies. Chapter 9 considers option-based valuation models including classic real option models (Black–Scholes) and extensions for multistage options with more robust portfolio assumptions. Valuation of information technology intensive enterprises is also addressed. Overall, this part provides a discussion of valuation methods for managing strategic investments in an uncertain world:

• Chapter 8: Approaches to Investment Valuation
• Chapter 9: Real Options for Investment Valuation

5. Extensions to the Work. There are many extensions possible to economic systems analysis and assessment. There are needed extensions to the classic microeconomics of economic systems analysis and assessment to enable satisfactory treatment of the increasing returns to scale, network effects, and path-dependent issues generally associated with contemporary ultra-large-scale telecommunications and information networks. Investing in the training and education, safety and health, and work productivity of humans is another very important issue. In our concluding chapter of this work, we present a very brief discussion of these issues:

• Chapter 10: Contemporary Perspectives