I look forward with great anticipation to read the latest (third) edition of Martin Ricketts' book on the economics of business enterprise. The original edition, which I discovered in a Coventry based second hand bookshop in the mid‐1980s, has provided me with many hours of pleasurable discovery. The much improved and expanded second edition (1993) brought with it a wealth of new knowledge in a somewhat neglected area of academic interest. I am glad to say that the latest edition of the book is yet another step forward towards a better and deeper understanding of the conceptual and contextual aspects of business enterprises.
This sizeable volume is usefully divided into three parts.
- 1.
Basic Concepts
- 2.
The Structure of Economic Organisations
- 3.
Public Policy and Economic Organisation.
Each part is further subdivided into interlinking sections and subsections, and the reader can choose, amongst a rich and well‐designed knowledge structure, what to read and in which order to approach the book. Even though I do not possess an in‐depth working knowledge of economics, I found this book easy to read and consider it a useful addition to my personal library. As with the previous two editions, I have opted for a “cover to cover” approach rather than a focused reading of those section and subsections that most appealed to me. No doubt, I will return to it, in the near future, for a more targeted use as a reference book to support my research and teaching activities. As such, this volume lends itself admirably to both “knowledge” as well as “reference” usage, and for my money I would definitively consider it a good investment.
In the first part and across five sections, the author deals with what he considers the basics of business enterprises. Although obviously targeted at the novice readers, the first two sections offer a rich and fertile ground for a thorough grounding in the important aspects of economics that relate to the theory of the firm. The third section is dedicated to the entrepreneur and much of it provides background data and contrasting views on both entrepreneur and entrepreneurial firm. The next two sections dwell upon property rights and issues relating to principal and agent theories. In part two, the analysis focuses on the structure of economic organisations. Across seven sections, the reader is introduced to hierarchies, integration, corporate governance, for‐ and non‐profit economic activities as well as the evolution of economic organisations. The third part is wholly dedicated to the impact of public policy on economic organisations. The three sections of the final part provide a very useful overview on the role of the state in an economy and the debate on public versus private enterprises. Further useful knowledge can be gained on various aspects of economic regulation and the impact of organisational structure upon competition.
In a short book review such as this, it proved difficult to do justice to the contribution this sizeable volume makes to the specialist literature. I sincerely hope that readers might benefit from this succinct overview of its contents and be tempted to peruse it themselves. The book would make useful reading for academics, researchers, undergraduate and postgraduate students as well as other interested parties, including policy makers, practitioners and consultants. I would wholeheartedly recommend it as a well‐written and authoritative text on a very important and fast growing topic of academic interest.
