Prices & Quantities: Fundamentals of Microeconomics
Cambridge University Press
Rakesh V. Vohra offers a unique approach to studying and understanding intermediate microeconomics by reversing the conventional order of treatment, starting with topics that are mathematically simpler and progressing to the more complex. The book begins with monopoly, which requires single variable rather than multivariable calculus and allows students to focus clearly on the fundamental trade-off at the heart of economics: margin versus volume. Imperfect competition and the contrast with monopoly follows, introducing the notion of Nash equilibrium. Perfect competition is addressed toward the end of the book, and framed as a model of non-strategic behavior by firms and agents. The last chapter is devoted to externalities, with an emphasis on how one might design competitive markets to price externalities and linking the difficulties to the problem of efficient provision of public goods. Real-life examples engage the reader while encouraging them to think critically about the interplay between model and reality.
- Exposes students to tangible applications up-front by moving from concrete mathematical concepts and problems to ones that are more abstract
- Draws on real-life anecdotes, such as Amazon and Hachette's struggle over eBook pricing models
- Covers essential topics with more substantive applications in order to be suitable for semester-long courses