Strategic Foundations of General Equilibrium

The Theory Of Competition Has Held A Central Place In Economic Analysis Since Adam Smith. This Book Written By One Of The Most Distinguished Of Contemporary Economic Theorists Reports On A Major Research Program To Provide Strategic Foundations For The Theory Of Perfect Competition. Beginning With A Concise Survey Of How The Theory Of Competition Has Evolved Gale Makes Extensive And Rigorous Use Of Dynamic Matching And Bargaining Models To Provide A More Complete Description Of How A Competitive Equlibrium Is Achieved. Whereas Economists Have Made Use Of A Macroscopic Description Of Markets In Which Certain Behavioral Characteristics Such As Price-Taking Behavior Are Taken For Granted Gale Uses Game Theory To Re-Evaluate This Assumption Beginning With Individual Agents And Modelling Their Strategic Interaction. A Strategic Foundation For Competitive Equilibrium Shows How Such Interaction Leads To Competitive Price-Taking Behavior. Essential Reading For Graduate Courses In Game Theory And General Equilibrium.