Producers, Consumers, and Partial Equilibrium
- 1st Edition - November 4, 2016
- Author: David Mandy
- Language: English
- Paperback ISBN:9 7 8 - 0 - 1 2 - 8 1 1 0 2 3 - 2
- eBook ISBN:9 7 8 - 0 - 1 2 - 8 1 1 0 2 4 - 9
Producers, Consumers, and Partial Equilibrium provides a systematic and accessible presentation of the full formal details in the core theories of producer and consumer choice un… Read more
Producers, Consumers, and Partial Equilibrium provides a systematic and accessible presentation of the full formal details in the core theories of producer and consumer choice under conditions of price taking; and covers the standard theories of competitive, monopoly, and oligopoly partial equilibrium among these economic actors. The book pulls together foundational content from many classic sources and organizes it in a self-contained format that rigidly adheres to optimization as the central behavioral postulate and analytical tool for economic theory.
The book maintains a sharp focus on the properties of outcomes from optimizing behavior in varying environments. These properties are the refutable hypotheses from each optimization behavioral postulate, and they form the core content of this positive economic theory. In so doing, the book presents and documents the underlying formal structure of the theory with a higher degree of integration and completeness than is typical of Ph.D. textbooks in microeconomics.
- Includes comprehensive, focused and unified coverage of the mathematics required for the core theories of producer and consumer choice, and partial equilibrium
- Presents a generalized envelope theorem as a key source of refutable hypotheses
- Delineates the role of active versus inactive constraints in generating refutable hypotheses
- Discusses convex functions in economic optimization environments
- Presents the full formal details of core producer and consumer and producer theory in a unified and systematic manner
- Emphasizes the refutable hypotheses resulting from behavioral postulates and the completeness (duality) of those hypotheses for the postulated behavior within microeconomics
- Includes end-of-chapter exercises, full index, and an instructor’s solutions manual
- Includes a concordance that matches its chapters with those of major textbooks
Upper-division undergraduates, graduate students, and faculty working in microeconomics who want the full formal mathematics supporting core theories of consumer and producer choice.
- Preface
- Part 1: Optimization
- Introduction
- Chapter 1: Properties of a Maximum
- Abstract
- 1.1 Continuity
- 1.2 Graphs and Continuity
- 1.3 Definite and Semidefinite Matrices
- 1.4 Derivatives
- 1.5 Homogeneity
- 1.6 Envelope Properties
- 1.7 Notes on Properties of Minima
- 1.8 Notes
- 1.9 Exercises
- Chapter 2: Properties of a Maximum Under Active Constraint
- Abstract
- 2.1 Lagrange Multiplier Rule
- 2.2 The “Envelope Theorem” With an Active Constraint
- 2.3 Second Order Condition
- 2.4 Comparative Statics
- 2.5 Notes on Properties of Minima
- 2.6 Notes
- 2.7 Exercises
- Chapter 3: Convex Functions
- Abstract
- 3.1 Continuity and Differentiability
- 3.2 Tangent Planes
- 3.3 Hessian Matrices
- 3.4 Quasiconvex Functions
- 3.5 Notes on Concave Functions
- 3.6 Notes
- 3.7 Exercises
- Part 2: Producers
- Introduction
- Chapter 4: Profit Maximization
- Abstract
- 4.1 Production Sets
- 4.2 Basic Optimization Postulate
- 4.3 Envelope Properties
- 4.4 Additional Properties
- 4.5 Single-Output Profit Maximization
- 4.6 Notes
- 4.7 Exercises
- Chapter 5: Duality of the Profit Maximum
- Abstract
- 5.1 Duality of the Profit Function
- 5.2 Deriving a Profit-Relevant Production Set
- 5.3 Original Versus Derived Production Sets
- 5.4 Duality of the Supply/Demand Correspondence
- 5.5 Notes
- 5.6 Exercises
- Chapter 6: Cost Minimization
- Abstract
- 6.1 Basic Optimization Postulate
- 6.2 Envelope Properties
- 6.3 Additional Properties
- 6.4 Single-Output Cost Minimization
- 6.5 Duality of the Cost Minimum
- 6.6 Recovering the Production From the Cost Function
- 6.7 Duality Between Cost and Profit Functions
- 6.8 Notes
- 6.9 Exercises
- Chapter 7: Cost in Output Markets
- Abstract
- 7.1 Basic Cost Concepts
- 7.2 Returns to Scale and Average Cost
- 7.3 Subadditivity
- 7.4 Elasticities of Substitution and Scale
- 7.5 Short-Run and Long-Run Costs
- 7.6 Supply
- 7.7 Le Châtelier Principle
- 7.8 Notes
- 7.9 Exercises
- Part 3: Consumers
- Introduction
- Chapter 8: Preferences
- Abstract
- 8.1 Rationality
- 8.2 Continuity
- 8.3 Further Axioms
- 8.4 Notes
- 8.5 Exercises
- Chapter 9: Expenditure Minimization
- Abstract
- 9.1 Basic Optimization Postulate
- 9.2 Envelope Properties
- 9.3 Additional Properties
- 9.4 Duality of the Expenditure Minimum
- 9.5 Notes
- 9.6 Exercises
- Chapter 10: Utility Maximization
- Abstract
- 10.1 Basic Optimization Postulate
- 10.2 Additional Properties
- 10.3 Relationship to Expenditure Minimization
- 10.4 Hicks-Slutsky Decomposition
- 10.5 Comparative Statics
- 10.6 Notes
- 10.7 Exercises
- Chapter 11: Duality of the Utility Maximum
- Abstract
- 11.1 Duality of the Indirect Utility Function
- 11.2 Revealed Preference
- 11.3 Integrability
- 11.4 Notes
- 11.5 Exercises
- Chapter 12: Consumer Welfare
- Abstract
- 12.1 Compensating and Equivalent Variations
- 12.2 Deadweight Loss
- 12.3 Aggregate Demand
- 12.4 Notes
- 12.5 Exercises
- Part 4: Partial Equilibrium
- Introduction
- Chapter 13: Perfect Competition
- Abstract
- 13.1 Aggregate Supply
- 13.2 Excess Demand
- 13.3 Equilibrium
- 13.4 Pareto Efficiency
- 13.5 Long-Run Equilibrium
- 13.6 Notes
- 13.7 Exercises
- Chapter 14: Monopoly
- Abstract
- 14.1 Basic Optimization Postulate
- 14.2 Welfare
- 14.3 Regulation
- 14.4 Price Discrimination
- 14.5 Notes
- 14.6. Exercises
- Chapter 15: Oligopoly
- Abstract
- 15.1 Elements of Game Theory
- 15.2 Cournot Oligopoly
- 15.3 Bertrand Duopoly
- 15.4 Stackelberg Leadership
- 15.5 Dominant Firm With a Competitive Fringe
- 15.6 Horizontal Differentiation
- 15.7 Vertical Differentiation
- 15.8 Notes
- 15.9 Exercises
- Index
- Edition: 1
- Published: November 4, 2016
- Language: English
DM
David Mandy
Professor of Economics at the University of Missouri, David Mandy received his Ph.D. from the University of Illinois. He has published in Econometrica, Journal of Economic Theory, Journal of Econometrics, International Economic Review, Economica, Economics Letters, the International Journal of Industrial Organization, and the Journal of Regulatory Economics.
Affiliations and expertise
University of Missouri, Columbia, MO, USARead Producers, Consumers, and Partial Equilibrium on ScienceDirect