Essential Microeconomics

Essential Microeconomics is designed to help students deepen their understanding of the core theory of microeconomics.

John G. Riley (Author)

9780521827478, Cambridge University Press

Hardback, published 10 September 2012

710 pages, 229 b/w illus. 17 tables
26 x 18.3 x 4 cm, 1.4 kg

'Unlike an encyclopedia, this book brilliantly focuses on the essence by developing three basic concepts (constrained optimization, supporting prices, and comparative statics) for both general equilibrium and game theory and then applying them to problems involving time, uncertainty, and asymmetric information that emerge in various fields, such as macroeconomics, finance, and mechanism design.' Joseph Tao-yi Wang, National Taiwan University

Essential Microeconomics is designed to help students deepen their understanding of the core theory of microeconomics. Unlike other texts, this book focuses on the most important ideas and does not attempt to be encyclopedic. Two-thirds of the textbook focuses on price theory. As well as taking a new look at standard equilibrium theory, there is extensive examination of equilibrium under uncertainty, the capital asset pricing model, and arbitrage pricing theory. Choice over time is given extensive coverage and includes a basic introduction to control theory. The final third of the book, on game theory, provides a comprehensive introduction to models with asymmetric information. Topics such as auctions, signaling and mechanism design are made accessible to students who have a basic rather than a deep understanding of mathematics. Examples and diagrams are used to illustrate issues as well as formal derivations.

1. Prices and optimization
2. Consumers
3. Equilibrium and efficiency in an exchange economy
4. Firms
5. General equilibrium
6. Dynamic optimization
7. Uncertainty
8. Equilibrium in financial markets
9. Strategy
10. Games with asymmetric information
11. Incentive compatibility and mechanism design
12. Auctions and public good
Appendix A. Mathematical foundations
Appendix B. Mappings of vectors
Appendix C. Optimization.

Subject Areas: Microeconomics [KCC], Economic theory & philosophy [KCA], Economics [KC]