Since the 18th century, the science of economics has studied the extent to which the market action of individuals, whose exclusive goal is to serve their individual interest, ends up spontaneously serving the Public Good. This systematic study was achieved in the 1950s through the theorems of John Nash, Kenneth Arrow, and Gerard Debreu, which constitute the backbone of Microeconomic Theory. Varoufakis and Theoharakis' book presents systematically, but also critically, the basic theorems of Market Microeconomics and Social Welfare. Its particular characteristics are:
- The integrated presentation of individual models (e.g. oligopolistic, monopolistic, and perfect competition, partial and general equilibrium) as sub-cases of a more general model of rational choices that aims to simultaneously determine all prices and quantities.
- By employing the method of Game Theory, the book systematically assumes that individuals and firms act rationally in the sense that they do not do something that they would regret if they knew well the theory that governs their behavior.
- The critical approach to the models so that the reader, while studying Microeconomic Theory, feels that they are "participating" in a continuous dialogue between different schools of thought.
- Original exercises and extensive solutions to them at the end of each chapter. Their purpose is to enhance the understanding of the concepts of each chapter as well as to add some examples and techniques that do not appear in the main text.