Advanced Microeconomics Theory, Applications and New Developments

Advanced Microeconomics presents microeconomic problems in an intuitive way. Using lucid narratives to build on students? initial understanding of economics and economic reality, equations and diagrams are incorporated to provide accessibility to students with a basic level of calculus to reach precise quantitative answers. It covers the standard areas of microeconomics such as consumer theory, producer theory, economics of uncertainty, general equilibrium and markets.

The book also includes new developments such as behavioural economics, prospect and regret theory, public-sector firms, bargaining, signalling games, adverse selection and moral hazard. Real-life applications are given throughout the chapters, clearly showing students how the advanced theory connects to the real world. Each chapter provides a set of exercises for independent problem-solving. Learning is also supported by lists of key terms, chapter summaries and further reading suggestions. Advanced technical materials are presented in optional appendices. Digital supplements include quiz questions, solutions to exercises and instructor materials. The flexible chapter sequencing in the book enables instructors to create their preferred syllabus.

Developing students? intuitive appreciation for the theory as well as mathematical analysis, this is the ideal textbook for microeconomics courses at master?s level (MSc and MRes) and advanced undergraduate level.

1. Budget set 2. Preferences 3. Utility maximisation 4. Expenditure minimisation and duality 5. Critiques of the demand theory and some new developments 6. General equilibrium of an exchange economy 7. Choice under uncertainty 8. Firm theory 9. Perfect competition 10. Monopoly 11. Game theory 12. Bargaining 13. Oligopoly 14. The principal-agent problem 15. Public goods 16. Mathematical appendix

Bibhas Saha is Associate Professor (Reader) in the Department of Economics, Durham University, UK.