9781429278416

The title, Modern Principles, refers to a progressive approach to economic modeling and applications that allows for more realistic interpretation of today's world events.

Mirroring the authors' successful blog, the text eschews boxed features to focus on the writing behind compelling examples, key concepts, and applications.

An emphasis on incentives underscores how economics is about human behavior and how economics helps us understand why we do what we do (in other words, the decisions we make in the face of incentives in the real world). Covers of the franchise titles feature multiple hands to emphasize the power of the Invisible Hand, a key economic concept that refers to the power of incentives (and was coined by Adam Smith).

Also Available: Updated 4th Edition

Tyler Cowen is Holbert C. Harris Professor of Economics at George Mason University and Director of the Mercatus Center and the James M. Buchanan Center for Political Economy. He is published widely in economics journals, including the American Economic Review and Journal of Political Economy. With Alex Tabarrok he co-writes the Marginal Revolution blog, often ranked as the #1 economics blog. He is also the author of Discover Your Inner Economist (Dutton, 2007) and numerous other books on economics. He writes regularly for the popular press on economics, including for The New York Times, The Washington Post, Forbes, and The Wilson Quarterly. University web page: http://economics.gmu.edu/faculty/tcowen.html WATCH: Tyler Cowen at the Economic Bloggers Forum. Alex Tabarrok is Bartley J. Madden Chair in Economics at the Mercatus Center at George Mason University and director of research for The Independent Institute. Tabarrok is co-author with Tyler Cowen of the popular economics blog, Marginal Revolution. His recent research looks at bounty hunters, judicial incentives and elections, crime control, patent reform, methods to increase the supply of human organs for transplant, and the regulation of pharmaceuticals. He is the editor of the books, Entrepreneurial Economics: Bright Ideas from the Dismal Science; The Voluntary City: Choice, Community, and Civil Society; and Changing the Guard: Private Prisons and The Control of Crime. His papers have appeared in the Journal of Law and Economics, Public Choice, Economic Inquiry, Journal of Health Economics, Journal of Theoretical Politics, The American Law and Economics Review, Kyklos and many other journals. His popular articles have appeared in The New York Times, The Wall Street Journal, and many other magazines and newspapers.

1. The Big Ideas
2. The Power of Trade and Comparative Advantage
3. Supply and Demand
4. Equilibrium: How Supply and Demand Determine Prices
5. Elasticity and its Applications
6. Taxes and Subsidies
7. The Price System: Signals, Speculation and Prediction
8. Price Ceilings and Price Floors
9. International Trade
10. Externalities: When the Price Is Not Right
11. Costs and Profit Maximization Under Competition
12. Competition and the Invisible Hand
13. Monopoly
14. Price Discrimination and Pricing Strategy
15. Oligopoly and Game Theory
16. The Economics of Network Goods: Competing for Monopoly
17. Monopolistic Competition and Advertising
18. Labor Markets
19. Public Goods and the Tragedy of the Commons
20. Political Economy and Public Choice
21. Economics, Ethics and Public Policy
22. Managing Incentives
23. Stock Markets and Personal Finance
24. Asymmetric Information
25. Consumer Choice