Models in Microeconomic Theory / Martin J. Osborne, Ariel Rubinstein.

Format:

Book

Author/Creator:

Osborne, Martin J., author.

Rubinstein, Ariel, author.

Language:

English

Physical Description:

1 electronic resource (362 p.)

Other Title:

Models in Microeconomic Theory

Place of Publication:

Open Book Publishers 2020

Language Note:

English

Summary:

"Models in Microeconomic Theory covers basic models in current microeconomic theory. Part I (Chapters 1-7) presents models of an economic agent, discussing abstract models of preferences, choice, and decision making under uncertainty, before turning to models of the consumer, the producer, and monopoly. Part II (Chapters 8-14) introduces the concept of equilibrium, beginning, unconventionally, with the models of the jungle and an economy with indivisible goods, and continuing with models of an exchange economy, equilibrium with rational expectations, and an economy with asymmetric information. Part III (Chapters 15-16) provides an introduction to game theory, covering strategic and extensive games and the concepts of Nash equilibrium and subgame perfect equilibrium. Part IV (Chapters 17-20) gives a taste of the topics of mechanism design, matching, the axiomatic analysis of economic systems, and social choice. The book focuses on the concepts of model and equilibrium. It states models and results precisely, and provides proofs for all results. It uses only elementary mathematics (with almost no calculus), although many of the proofs involve sustained logical arguments. It includes about 150 exercises. With its formal but accessible style, this textbook is designed for undergraduate students of microeconomics at intermediate and advanced levels. "

Contents:

Intro

Personal note

Preface

Part I Individual behavior

1 Preferences and utility

1.1 Preferences

1.2 Preference formation

1.3 An experiment

1.4 Utility functions

Problems

Notes

2 Choice

2.1 Choice and rational choice

2.2 Rationalizing choice

2.3 Property alpha

2.4 Satisficing

2.5 The money pump argument

2.6 Evidence of choices inconsistent with rationality

3 Preferences under uncertainty

3.1 Lotteries

3.2 Preferences over lotteries

3.3 Expected utility

3.4 Theory and experiments

3.5 Risk aversion

7 Monopoly

7.1 Basic model

7.2 Uniform-price monopolistic market

7.3 Discriminatory monopoly

7.4 Implicit discrimination

Part II Equilibrium

8 A jungle

8.1 Model

8.2 Equilibrium

8.3 Pareto stability

8.4 Equilibrium and Pareto stability in a jungle

8.5 Which allocations can be obtained by a social planner who controls the power relation?

8.6 Externalities

9 A market

9.1 Model

9.2 Existence and construction of a market equilibrium

9.3 Equilibrium and Pareto stability

9.4 Uniqueness of market equilibrium

Problems

13 Equilibrium with prices and expectations

13.1 Distributing customers among bank branches

13.2 Asymmetric information and adverse selection

13.3 A fishing economy

14 A market with asymmetric information

14.1 Introductory model

14.2 Labor market with education

Part III Game theory

15 Strategic games

15.1 Strategic games and Nash equilibrium

15.2 Basic examples

15.3 Economic examples

15.4 Existence of Nash equilibrium

15.5 Strictly competitive games

15.6 Kantian equilibrium

15.7 Mixed strategies

10 An exchange economy

10.1 Model

10.2 Competitive equilibrium

10.3 Existence of a competitive equilibrium

10.4 Reopening trade

10.5 Equilibrium and Pareto stability

10.6 The core

10.7 Competitive equilibrium based on demand functions

10.8 Manipulability

10.9 Edgeworth box

11 Variants of an exchange economy

11.1 Market with indivisible good and money

11.2 Exchange economy with uncertainty

12 A market with consumers and producers

12.1 Production economy

12.2 An economy with capital and labor

4 Consumer preferences

4.1 Bundles of goods

4.2 Preferences over bundles

4.3 Monotonicity

4.4 Continuity

4.5 Convexity

4.6 Differentiability

5 Consumer behavior

5.1 Budget sets

5.2 Demand functions

5.3 Rational consumer

5.4 Differentiable preferences

5.5 Rationalizing a demand function

5.6 Properties of demand functions

6 Producer behavior

6.1 The producer

6.2 Output maximization

6.3 Profit maximization

6.4 Cost function

6.5 Producers' preferences

Notes

Notes:

Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/legalcode

Description based on online resource; title from PDF title page (Open Book Publishers website ; viewed on 2020-04-17)

ISBN:

1-78374-894-X

Access Restriction:

Unrestricted online access