Microeconomic Foundations II: Imperfect Competition, Information, and Strategic Interaction

by David M. Kreps

Overview

A cutting-edge introduction to key topics in modern economic theory for first-year graduate students in economics and related fields

Volume II of Microeconomic Foundations introduces models and methods at the center of modern microeconomic theory. In this textbook, David Kreps, a leading economic theorist, emphasizes foundational material, concentrating on seminal work that provides perspective on how and why the theory developed. Because noncooperative game theory is the chief tool of modeling and analyzing microeconomic phenomena, the book stresses the applications of game theory to economics. And throughout, it underscores why theory is most useful when it supports rather than supplants economic intuition.

• Introduces first-year graduate students to the models and methods at the core of microeconomic theory today
• Covers an extensive range of topics, including the agency theory, market signaling, relational contracting, bilateral bargaining, auctions, matching markets, and mechanism design
• Stresses the use—and misuse—of theory in studying economic phenomena and shows why theory should support, not replace, economic intuition
• Includes extensive appendices reviewing the essential concepts of noncooperative game theory, with guidance about how it should and shouldn’t be used
• Features free online supplements, including chapter outlines and overviews, solutions to all the problems in the book, and more

Product Details

ISBN-13:	9780691250144
Publisher:	Princeton University Press
Publication date:	05/23/2023
Pages:	800
Product dimensions:	7.00(w) x 10.00(h) x (d)

About the Author

David M. Kreps is the Adams Distinguished Professor Emeritus of Management at Stanford University’s Graduate School of Business. He is a Distinguished Fellow of the American Economic Association, a fellow of the Econometric Society and the American Academy of Arts and Sciences, and a member of the National Academy of Sciences. His books include Microeconomic Foundations I: Choice and Competitive Markets (Princeton), Microeconomics for Managers (Princeton), The Motivation Toolkit: How to Align Your Employees’ Interests with Your Own, and The Black-Scholes-Merton Model as an Idealization of Discrete-Time Economies.

What People are Saying About This

From the Publisher

“This is a brilliant account of the modern theory of imperfect competition, information economics, and strategy by a legendary expositor who has also made many of the seminal contributions. His critical commentary is especially valuable and will be mulled over by students and experts alike.”—Dilip Abreu, New York University

“A masterclass. This important book not only teaches the key material; it also shows how David Kreps—universally acclaimed as one of the leading economic theorists of his generation—thinks about doing economics.”—Paul Klemperer, University of Oxford

“David Kreps has a comprehensive command of the subject and rare pedagogical skills. The result is a reference text for serious students who are ready to work their way into the material for an interior view of the essence of each model. As the details are elucidated, the big picture is never lost.”—David G. Pearce, New York University

“This book allows serious students and scholars of economics to understand thoroughly the foundations of current economic theory. I don’t know anyone else who could have produced such a masterpiece.”—Ariel Rubinstein, Tel Aviv University