Microeconomics for Managers, 2nd Edition

by David M. Kreps

Overview

A thoroughly revised new edition of a leading textbook that equips MBA students with the powerful tools of economics

This is a thoroughly revised and substantially streamlined new edition of a leading textbook that shows MBA students how understanding economics can help them make smarter and better-informed real-world management decisions. David Kreps, one of the world’s most influential economists, has developed and refined Microeconomics for Managers over decades of teaching at Stanford’s Graduate School of Business. Stressing game theory and strategic thinking and driven by in-depth, integrated case studies, the book shows future managers how economics can provide practical answers to critical business problems.

• Focuses on case studies and real companies, such as Amazon, Microsoft, General Motors, United Airlines, and Xerox
  
• Covers essential topics for future managers—including price discrimination, Porter’s five forces, risk sharing and spreading, signaling and screening, credibility and reputation, and economics and organizational behavior
  
• Features an online supplement (available at micro4managers.stanford.edu) for students that provides solutions to the problems in the book, longer caselike exercises, review problems, a calculus review, and more
  

Product Details

ISBN-13:	9780691182698
Publisher:	Princeton University Press
Publication date:	01/29/2019
Edition description:	New Edition
Pages:	520
Product dimensions:	7.30(w) x 10.00(h) x 1.40(d)

About the Author

David M. Kreps is the Adams Distinguished Professor of Management, Emeritus, at Stanford University's Graduate School of Business. A leading economic theorist, he is past recipient of the John Bates Clark Medal, the John J. Carty Award for the Advancement of Science, the Erwin Plein Nemmers Prize in Economics, and the CME Group-MSRI Prize in Innovative Quantitative Applications. He is a Distinguished Fellow of the American Economic Association and a member of the National Academy of Sciences. Among his many books are The Motivation Toolkit: How to Align Your Employees' Interests with Your Own, Microeconomic Foundations I: Choice and Competitive Markets (Princeton), Strategic Human Resources (with James Baron), A Course in Microeconomic Theory (Princeton), and Game Theory and Economic Modelling.

Table of Contents

Preface to the Second Edition vii

Part I The Economics of Relationships

1 The Economics of Relationships (and Porter's Five Forces) 3

2 Noncooperative Game Theory 8

3 Reciprocity and Collusion 48

4 Credibility and Reputation 71

5 Transaction-Cost Economics 96

Part II Pricing with Market Power

6 Marginal Cost Equals Marginal Revenue 123

7 Mark-Up Pricing and Elasticity 155

8 Price Discrimination 175

9 Channels of Distribution and Double Marginalization 196

Part III Bang for the Buck: Optimization Under Constraint

10 The Utility-Maximizing Consumer 219

11 Technology and Cost Minimization 247

12 Multiperiod Production and Cost 267

Part IV Competitive Markets

13 The Most Famous Picture in Economics 293

14 Competitive Firms in Competitive Markets 306

15 The Invisible Hand 334

16 Taxes, Subsidies, Administered Prices, and Quotas 353

17 Externalities 377

Part V Uncertainty and Information

18 The Expected-Utility Model 399

19 Risk Sharing and Spreading: Securities and Insurance Markets 428

20 Hidden Information: Adverse Selection, Signaling, and Screening 446

21 Hidden Action: Moral Hazard and Incentives 468

Index 489