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Martin J. Osborne and Ariel Rubinstein introduce the mathematical models used in microeconomic theory. This expanded second edition develops individual decision-making, economic interaction and the different meanings of equilibrium through definitions, examples and problems.
The first part treats preferences, rational choice, uncertainty, consumers, producers and monopoly. Later parts examine exchange economies, rational expectations and asymmetric information before introducing strategic and extensive games, Nash equilibrium and subgame perfection.
The final chapters address mechanism design, matching, axiomatic analysis and social choice. This is the publisher’s feminine-pronoun version of the textbook; its subject is economic modeling. The first edition appeared in 2020, and the expanded edition presented here was published in 2023.