What is a firm? Why do some firms succeed while other firms fail? How do firms behave in competitive markets? Why do governments regulate firm behaviour, and how do they do it? Paul Cashian's Economics, Strategy and the Firm brings together microeconomic theory, transaction cost economics and business strategy to address these and related questions. After developing an integrated theoretical framework that explains why real-world firms manage not just to generate but also sustain profits over time, Cashian then turns to the wide environment in which a firm operates and introduces students to a range of models drawn from economics and business strategy, highlighting their key similarities and differences. Finally, Cashian examines competition policy and shows how it rests on the theory and concepts explained in the book. The book is filled with discussions of real firms in real-world settings so students can see the importance and immediate application of the concepts and models they learn.