Economic Systems Analysis and Assessment
Intensive Systems, Organizations,and Enterprises
Published on 25. February 2011
500 pages
978-1-118-01547-6 (ISBN)
Description
An Authoritative Introduction to a Major Subject in SystemsEngineering and Management
This important volume fills the need for a textbook on thefundamentals of economic systems analysis and assessment,illustrating their vital role in systems engineering and systemsmanagement. Providing extensive coverage on key topics, it assumesno prior background in mathematics or economics in order tocomprehend the material.
The book is comprised of five major parts:
* Microeconomics: a concise overview that covers production andthe theory of the firm; theory of the consumer; market equilibriaand market imperfections; and normative or welfare economics,including imperfect competition effects and consumer and producersurplus
* Program Management Economics: discusses economic valuation ofprograms and projects, including investment rates of return;cost-benefit and cost-effectiveness analysis; earned valuemanagement; cost structures and estimation of program costs andschedules; strategic and tactical pricing issues; and capitalinvestment and options
* Cost Estimation: reviews cost-estimation technologies involvingprecedented and unprecedented development, commercial-off-the-shelf(COTS) software, software reuse, application generators, andfourth-generation languages
* Strategic Investments in an Uncertain World: addressesalternative methods for valuation of firms including SternStewart's EVA, Holt's CFROI, and various competingmethodologies
* Contemporary Perspectives: covers ongoing extensions to theoryand practice that enable satisfactory treatment of the increasingreturns to scale, network effects, and path-dependent issuesgenerally associated with contemporary ultra-large-scaletelecommunications and information networks
Also discussed in this comprehensive text are normative orwelfare economics and behavioral economics; COCOMO I and II andCOSYSMO as examples of a cost model; and options-based valuationmodels and valuation of information technology intensiveenterprises.
Economic Systems Analysis and Assessment serves as anideal textbook for senior undergraduate and first-year graduatecourses in economic systems analysis and assessment, as well as avaluable reference for engineers and managers involved withinformation technology intensive systems, professional economists,cost analysts, investment evaluators, and systems engineers.
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Andrew P. Sage | William B. Rouse
Economic Systems Analysis and Assessment
Intensive Systems, Organizations,and Enterprises
Book
04/2011
Wiley
€152.50
Shipment within 10-20 days
Software
03/2011
Wiley
€176.35
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Persons
Andrew P. Sage, PhD, is University Professor and First American Bank Professor at George Mason University in Fairfax, Virginia. He is a Fellow of the IEEE, the American Association for the Advancement of Science, and International Council on Systems Engineering (INCOSE). The winner of numerous awards, Dr. Sage is the editor of the Wiley Series in Systems Engineering and Management and the founding editor of the INCOSE journal Systems Engineering. He is a member of the National Academy of Engineering. William B. Rouse, PhD, is the Executive Director of the Tennenbaum Institute at the Georgia Institute of Technology, and a faculty member in the School of Industrial and Systems Engineering and the College of Computing. A former CEO of two innovative software companies, he has four decades of experience in research, education, engineering, management, and marketing. Dr. Rouse has written hundreds of articles and book chapters and has authored many books. He is a member of the National Academy of Engineering and a fellow of several professional societies.
Content
PREFACE.
Chapter 1 Introduction to Economic Systems Analysis andAssessment: Cost, Value, and Competition in Information andKnowledge Intensive Systems, Organizations, andEnterprises.
1.1 Inroduction.
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 the Firms and Consumers:Microeconomic Models of Economic Activity.
1.6 Welfare or Normative Economics.
1.7 Program and Program Management Economics.
1.8 Contemporary Issues Concerning Information andInformation Technology Economic.
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 ProductionFunctions.
2.4 Classical 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 Property 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 SystemsAnalysis 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 MarketInterdependencies.
4.5 Microeconomics Models.
4.6 Summary.
Chapter 5 Normative or Welfare Economics, Decisions andGames, and Behavioral Economics.
5.1 Introduction.
5.2 Pareto Optimality Under Perfect Competitive Conditions.
5.3 External Effects and Imperfect Competition-Public Goods.
5.4 External Effects and Imperfect Competition-NonindependentProduction and Consumption.
5.5 Welfare Maximization and Social Choice.
5.6 Summary.
5.7 Selected Bibliography.
Chapter 6 Cost-Benefit and Cost-Effectiveness Analysis andAssessments.
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 A Guide to Cost-Benefit Analysis.
Chapter 7 Cost Assessment.
7.1 Model-Based Parameters for Productivity.
7.2 Early Models for Estimation of Costs, Including Effort andSchedule.
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 INVESTMENTVALUATION.
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.
