General Equilibrium and Game Theory

This volume presents Andreu Mas-Colell's influential work on competitive markets and game theory, essential for understanding modern economic modeling.

In General Equilibrium and Game Theory, Andreu Mas-Colell transforms our understanding of competitive markets, price dynamics, and the behavior of market participants. This volume compiles his most significant scholarly works, showcasing the groundbreaking papers that have established him as a leading figure in contemporary economic theory. It serves as an essential resource for anyone interested in mastering the art of economic modeling.

Mas-Colell's contributions are built upon the principles of neoclassical economics, yet they stand out due to their mathematical precision and analytical depth. He challenges traditional notions of general equilibrium theory, arguing that the assumptions of perfect competition and rationality among market participants do not hold in real-world scenarios. His work emphasizes that the law of supply and demand, as well as the existence of equilibrium prices, is not solely reliant on the rational behavior of agents. In collaboration with Sergiu Hart, he also critiques classical game theory's focus on rationality, highlighting the roles of adaptation and learning in the dynamics of repeated games.

Moreover, the book addresses key topics in finance, trade, industrial organization, and welfare economics. Mas-Colell illustrates the remarkable effectiveness of differentiability and linear-space mathematical techniques, while also advocating for the benefits of cooperative game-theory approaches, such as Shapley value theory and the Bargaining Set. General Equilibrium and Game Theory is a significant contribution to economic theory and an invaluable guide for those eager to learn from a master in the field.