‘Advanced Microeconomic Theory’ remains a rigorous, up-to-date standard in microeconomics, giving all the core mathematics and modern theory the advanced student must master.

Long known for careful development of complex theory, together with clear, patient explanation, this student-friendly text, with its efficient theorem-proof organization, and many examples and exercises, is uniquely effective in advanced courses.

New in this edition

• General equilibrium with contingent commodities
• Expanded treatment of social choice, with a simplified proof of Arrow’s theorem and complete, step-by-step development of the Gibbard-Satterthwaite theorem
• Extensive development of Bayesian games
• New section on efficient mechanism design in the quasi-linear utility, private values environment. The most complete and easy to follow presentation of any text.
• Over fifty new exercises.

Essential reading for students at Masters level, those beginning a Ph.D and advanced undergraduates. A book every professional economist wants in their collection.

Table of Contents

Part I. Economic Agents

1. Consumer Theory

2. Topics in Consumer Theory

3. Theory of the Firm

Part II. Markets and Welfare

4. Partial Equilibrium

5. General Equilibrium

6. Social Choice and Welfare

Part III. Strategic Behavior

7. Game Theory

8. Information Economics

9. Auctions and Mechanism Design

Mathematical Appendices

A 1. Sets and Mappings

A2. Calculus and Optimisation