Revising a textbook every three or four years is hard work, and the last edition was well-liked by students. So why is our publisher pushing for a new edition? the authors wondered. Were some of the examples becoming stale? Or might it have something to do with the used book market? Could be both. In any case, here they are again, with a new edition that has sub-stantial improvements and lots of new examples.
For students who care about how the world works, microeconomics is probably the most relevant, interesting, and important subject they can study. (Macroeconomics is the second-most important subject.) A good grasp of microeconomics is vital for managerial decision making, for design-ing and understanding public policy, and more generally, for appreciating how a modern economy functions. In fact, even understanding the news each day often requires knowledge of microeconomics.
We wrote this book, Microeconomics, because we believe that students need to be exposed to the new topics that have come to play a central role in microeco-nomics over the yearstopics such as game theory and competitive strategy, the roles of uncertainty and information, and the analysis of pricing by firms with market power. We also felt that students need to be shown how microeco-nomics can help us to understand what goes on in the world and how it can be used as a practical tool for decision making. Microeconomics is an exciting and dynamic subject, but students need to be given an appreciation of its relevance and usefulness. They want and need a good understanding of how microeco-nomics can actually be used outside the classroom.