Full Description
This graduate textbook explores key microeconomic concepts to provide insight into financial markets, comparative economic development, and political institutions. Theoretical concepts are accompanied by historical and real life case studies to highlight the evolution of institutions and the solutions to market failures. General mathematical models are presented in a practical and clear manner and can be applied to problem solving scenarios. Key dilemmas relating to monopolies, institutional design, economic policy, power in society, and the rule of law are also discussed.
This multidisciplinary book aims to provide a real world understanding of microeconomics and game theory, enabling readers to review policy and institutional requirements. It will be relevant to students and policymakers interested in institutional economics, the political economy, financial economics, and economic governance.
Contents
1. The State Monopoly on Violence.- 2. Market Failures and Institutions.- 3. Innovation and the Capitalist Revolution.- 4. Monopoly Power and Competition.- 5. Who Pays for Fixed Costs?.- 6. Insurance versus Incentives.- 7. Reputations and Implicit Contracts.- 8. Adverse Selection.- 9. Property Rights and the Rule of Law.- 10. Distributional Conflict and Democracy.- 11. Mathematical Appendix.- 12. Index of Variables.
