The purpose of this book is to introduce the empirically-based literatureon contracting and organization to a student audience. This literature derivesfrom the work of R.H. Coase, winner of the Nobel Prize in Economics in 1991. Itincludes studies of a wide range of industries, including aerospace, automotive,electric power generation, fast food, petroleum, coke, soft drink distribution,shoe manufacturing, timber harvesting, transportation, and tuna processing. Moreimportant than any of the specific industries or practices represented is thateach study illustrates important principles of organization that generalize tocommercial transactions in other settings.