A graduate course in microeconomic analysis, geared towards those parts of the subject that are of primary importance in the Management area. The first section focuses on competition between firms, using standard game theoretic models. This leads to a general treatment of market competition by reference to the concept of firms’ capabilities. The next section traces the basis of firms’ capabilities to the set of elements of know-how possessed by the individuals comprising the firm, and by the mode of internal organization of those individuals. The analysis draws on the several strands in the modern literature on the theory of the firm. The final section of the course deals with the link between strategy and structure, and with the formulation of strategies in environments characterized by complexity and uncertainty.