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Game Theory, Fall 2002

(Complete Item Description)

Abstract:: How should economic agents act when their optimal decisions depend on what they expect other agents to do? We study various models of equilibrium, which correspond to different ways that the agents might make their decisions, and various kinds of gamesstatic games, dynamic games, and games of incomplete information.

Subject:: Social Sciences
Grade Level:: Post-secondary
Collection:: MIT OpenCourseWare

Quantum Microeconomics

(Complete Item Description)

Abstract:: The "quantum" of economics is the optimizing individual. All of economics ultimately boils down to the behavior of such individuals. Microeconomics studies their basic actions and interactions: individual markets, supply and demand, the impact of taxes, monopoly, etc. Macroeconomics then lumps together these individual markets to study national and international issues. In structure this book—which covers only microeconomics—is not unlike a hiking trip. We start out by putting our boots on and getting our gear together: in Part I we study the optimizing individual. Then we set out on our path and immediately find ourselves hacking through some pretty thick jungle: even simple interactions between just two people (Part II) can be very complicated! As we add even more people (in studying auctions, for example), things get even more complicated, and the jungle gets even thicker. Then a miracle occurs: we add even more people, and a complex situation suddenly becomes simple. After hacking through thick jungle, we find ourselves in a beautiful clearing: competitive markets (Part III) are remarkably easy to analyze and understand.

Subject:: Business
Grade Level:: Post-secondary
Collection:: Individual Authors

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