This course applies tools from microeconomics, game theory, industrial organization, and theory of the firm to analyze business decisions. It focuses on how firms can anticipate and influence their rivals' competitive behavior, and the impact this has on profitability. Classes combine case analysis and discussions with lectures. Topics include efficient production, pricing, product design, commitment, firm structure and boundaries, network effects, and entry and exit. The course is designed for students who are comfortable with the material in 33001.