Microeconomics with Game Theory

In summary, the conversation is about someone looking for a more advanced textbook on microeconomic theory that also covers game theory. A recommended book is "Microeconomic Theory: Basic Principles and Extensions" by Nicholson and Snyyder, while another reader suggests "The Applied Theory of Price" by Donald N. McCloskey. For a more technical approach, "Microeconomic Analysis" by Varian or "Advanced Microeconomic Theory" by Jehle and Reny are recommended. For game theory, "Game Theory" by Gibbons or "Game Theory: An Introduction" by Tadelis are suggested.
  • #1
coffeejunky
21
0
Hello. I'm currently looking for a textbook which emphasizes microeconomic theory on a more advanced level compared to the mass-marketed books, (e.g. Mankiw, McConell, ...) and a textbook that contains more game theory. Does anyone have suggestions?
 
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  • #3
The Mas-Colell et al. book recommended by jedishrfu is the standard graduate-level micro theory textbook. It is very good, but also very technical. If you main interest is in obtaining a more advanced understanding of the economic principles (rather than of the rigorous mathematical formulation of those principles) then I would recommend

"Microeconomic Theory: Basic Principles and Extensions" by Nicholson and Snyyder

or

"The Applied Theory of Price" by Donald N. McCloskey (this is out of print, but you should be able to find a used copy and it is an excellent, excellent book).

If you do want a graduate-level treatment, but find Mas-Colell et al. to be a little heavy-going then strandard alternatives are

"Microeconomic Analysis" by Varian,
“Advanced Microeconomic Theory” by Jehle and Reny

For game theory, I would go with a specialist book. I think the book "Game Theory" by Gibbons is excellent for this purpose.
 
  • #4
Agree with ubiquitousuk.

Game Theory: An Introduction by Tadelis is good.
 
  • #5


I understand the importance of finding a textbook that covers microeconomics and game theory in a more advanced and comprehensive manner. I would recommend looking into textbooks such as "Microeconomic Theory" by Andreu Mas-Colell, Michael Whinston, and Jerry Green, which covers microeconomic theory in depth and also includes game theory concepts. Another option could be "Game Theory for Applied Economists" by Robert Gibbons, which focuses specifically on the application of game theory in economics. I hope these suggestions help in your search for a suitable textbook.
 

1. What is microeconomics with game theory?

Microeconomics with game theory is a branch of economics that focuses on how individual agents, such as consumers and firms, make decisions in a strategic environment. It uses mathematical models to analyze situations where the outcome of a decision made by one agent depends on the decisions made by other agents.

2. How does game theory apply to microeconomics?

Game theory applies to microeconomics by providing a framework for understanding strategic interactions between individual agents. It helps economists analyze situations where each agent's decision affects not only their own outcome but also the outcomes of other agents.

3. What are the key concepts in microeconomics with game theory?

The key concepts in microeconomics with game theory include strategic interactions, dominant strategies, Nash equilibrium, and game trees. Strategic interactions refer to situations where the decisions of one agent affect the outcomes of other agents. Dominant strategies are those that result in the best outcome for an agent regardless of the decisions made by other agents. Nash equilibrium is a situation where no agent can improve their outcome by unilaterally changing their decision. Game trees are graphical representations of strategic interactions in a game.

4. What are some real-world applications of microeconomics with game theory?

Microeconomics with game theory has many real-world applications, including in industries such as healthcare, finance, and telecommunications. For example, game theory can be used to analyze pricing strategies in healthcare markets or to understand how financial institutions make decisions in a competitive market. It is also used in the study of voting behavior and political decision-making.

5. What are the limitations of microeconomics with game theory?

Microeconomics with game theory has some limitations, such as assuming rational decision-making by all agents and not accounting for human emotions and biases. It also requires a high level of mathematical and analytical skills, making it challenging to apply in some real-world situations. Additionally, game theory may not always accurately predict the outcomes of real-world scenarios due to the complexity and unpredictability of human behavior.

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