Economics and Consumer Behavior

Features

• Cover Type: Paperback with 464 pages
• Published by: Cambridge University Press May 30, 1980
• Written in: English
• ISBN 10 Number: 0521296765
• ISBN 13 Number: 978-0521296762
• Book Dimensions: 8.9 x 5.9 x 0.9 inches
• Weighs: 1.2 pounds

Product Description
The idea of duality has proved to be a powerful device in modern work on the economics of consumer behaviour. The authors have used duality to provide an integrated and accessible treatment of this subject. The book focuses on applications of the theory to welfare economics and econometric analysis. The book begins with four chapters that provide a self-contained presentation of the basic theory and its use in applied econometrics. These chapters also include elementary extensions of the theory to labour supply, durable goods, the consumption function, and rationing. The rest of the book is divided into three parts. In the first of these the authors discuss restrictions on choice and aggregation problems. The next part consists of chapters on consumer index numbers; household characteristics, demand, and household welfare comparisons; and social welfare and inequality. The last part extends the coverage of consumer behaviour to include the quality of goods and household production theory, labour supply and human capital theory, the consumption function and intertemporal choice, the demand for durable goods, and choice under uncertainty.

Book Description
For advanced courses in economic analysis, this book presents the economic theory of consumer behavior, focusing on the applications of the theory to welfare economies and econometric analysis.

Reader Reviews
It is true that this book is now a bit dated. However, first, much of the foundations of microeconomic theory has not changed since the 80s and, second, this book contains a great deal that more "modern" micro textbooks (such as Mas-Colell, Whinston, and Green MWG) do not even mention. In particular, if your interest lies mostly in APPLIED work, this book is, in my opinion, superior to MWG. The chapters on demand are superb, and not surprisingly you still see them cited in hundreds of recent papers. I stress the fact that here you will not only learn about the building blocks of consumer theory, but you will also see actual APPLICATIONS of the estimation of demand systems (including the now famous Almost Ideal Demand System "invented" by the authors themselves). This textbook is invaluable for those who want to have a rigorous primer on demand, and demand estimation. Also excellent are the treatment of non-linear budget constraints, and price indexes. The book is also VERY well written, and intuition is almost always provided. On the minus side, game theory and contract theory are not covered at all, but these are topics that are covered well in many other books (including MWG).