An Authoritative Introduction to a Major Subject in Systems
Engineering and Management
This important volume fills the need for a textbook on the
fundamentals of economic systems analysis and assessment,
illustrating their vital role in systems engineering and systems
management. Providing extensive coverage on key topics, it assumes
no prior background in mathematics or economics in order to
comprehend the material.
The book is comprised of five major parts:
* Microeconomics: a concise overview that covers 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
* Program Management Economics: discusses 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
* Cost Estimation: reviews cost-estimation technologies involving
precedented and unprecedented development, commercial-off-the-shelf
(COTS) software, software reuse, application generators, and
fourth-generation languages
* Strategic Investments in an Uncertain World: addresses
alternative methods for valuation of firms including Stern
Stewart's EVA, Holt's CFROI, and various competing
methodologies
* Contemporary Perspectives: covers ongoing extensions to theory
and practice that 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
Also discussed in this comprehensive text are normative or
welfare economics and behavioral economics; COCOMO I and II and
COSYSMO as examples of a cost model; and options-based valuation
models and valuation of information technology intensive
enterprises.
Economic Systems Analysis and Assessment serves as an
ideal textbook for senior undergraduate and first-year graduate
courses in economic systems analysis and assessment, as well as a
valuable reference for engineers and managers involved with
information technology intensive systems, professional economists,
cost analysts, investment evaluators, and systems engineers.
