In this novel introduction to modern microeconomic theory, Samuel Bowles returns to the classical economists' interest in the wealth and poverty of nations and people, the workings of the institutions of capitalist economies, and the coevolution of individual preferences and the structures of markets, firms, and other institutions. Using recent advances in evolutionary gamIn this novel introduction to modern microeconomic theory, Samuel Bowles returns to the classical economists' interest in the wealth and poverty of nations and people, the workings of the institutions of capitalist economies, and the coevolution of individual preferences and the structures of markets, firms, and other institutions. Using recent advances in evolutionary game theory, contract theory, behavioral experiments, and the modeling of dynamic processes, he develops a theory of how economic institutions shape individual behavior, and how institutions evolve due to individual actions, technological change, and chance events. Topics addressed include institutional innovation, social preferences, nonmarket social interactions, social capital, equilibrium unemployment, credit constraints, economic power, generalized increasing returns, disequilibrium outcomes, and path dependency.Each chapter is introduced by empirical puzzles or historical episodes illuminated by the modeling that follows, and the book closes with sets of problems to be solved by readers seeking to improve their mathematical modeling skills. Complementing standard mathematical analysis are agent-based computer simulations of complex evolving systems that are available online so that readers can experiment with the models. Bowles concludes with the time-honored challenge of "getting the rules right," providing an evaluation of markets, states, and communities as contrasting and yet sometimes synergistic structures of governance. Must reading for students and scholars not only in economics but across the behavioral sciences, this engagingly written and compelling exposition of the new microeconomics moves the field beyond the conventional models of prices and markets toward a more accurate and policy-relevant portrayal of human social behavior....
|Title||:||Microeconomics: Behavior, Institutions, and Evolution|
|Number of Pages||:||608 Pages|
|Status||:||Available For Download|
|Last checked||:||21 Minutes ago!|
Microeconomics: Behavior, Institutions, and Evolution Reviews
Uses the fairly recently-developed (1970's) tools of evolutionary game theory (specifically evolutionarily stable strategies) to study more-realistic economic situations than what we normally learn in Econ 101. Bowles demolishes the idea that a frictionless market of independent price-taking utility maximizers even makes sense; he replaces it with a far more dynamic model of humans with realistic psychology. In his treatment, standard von Neumann-Morganstern-Nash game-theoretic equilibria become the *endpoints* of a far more complicated process where institutions evolve. Behavior is defined by institutions; Bowles studies how institutions change behavior, and conversely. One of the most mind-changing books I've read in a long time.
Brilliant and innovative! The thinking we require to move economics forward.