Microeconomics (Behavioral, Institutional, and Evolutionary)

Author: (American) Bowles, Paul, translated by Jiang Ting et al.
Publisher:
Publish Date: 2006-12-01
Features: In this highly creative modern microeconomic theory work, Sam Bowles returns to the themes of classical economists: the wealth and poverty of nations and peoples; the functioning of capitalist economic systems; and the coevolution of the structure of markets, firms, and other institutions with individual preferences. Using new research findings in evolutionary game theory, contract theory, behavioral experiments, and dynamic process models, Bowles develops a comprehensive theory to explain: How do economic institutions shape individual behavior? How do institutions evolve under the influence of individual actions, technological change, and events? This book highlights the following themes: institutional innovation, social preferences, non-market social interactions, social capital, equilibrium unemployment, credit constraints, economic power, universal increasing returns, non-equilibrium outcomes, and path dependence. Each chapter begins with some empirical puzzles or historical anecdotes and is explained through models. At the end of the book, there are exercises for readers to solve, which helps improve their mathematical modeling skills. To further supplement standard mathematical analysis, the book provides computer simulations of complex evolutionary systems, which are agent-based and suitable for online operation, allowing readers to experiment with the models in the book. Bowles asserts that the challenge of "making rules right" must be tested by time, which provides a relative evaluation of markets, nations, and communities, and sometimes also evaluates some collaborative governance structures. This work reflects a great deal of the author's effort and demonstrates the transcendence of new microeconomics over traditional price and market models, offering a more accurate and policy-relevant characterization of human social behavior.