* This is the new edition of a popular student textbook. The first edition was well-received. The author has made revisions and additions to enhance the book's usefulness without destroying its distinctive character as a lucid, thorough, and readable text. It gives a broad treatment of...

How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditional economic models of investment failed to explain the behavior of investment spending in the United States and other countries? In...

Failures of government policies often provoke opposite reactions from citizens; some call for a reversal of the policy while others favor its continuation in stronger form. We offer an explanation of such polarization, based on a natural bimodality of preferences in political and economic...

Vortrag von Prof. Avinash K. Dixit Professor Emeritus of Economics, Princeton University

The descriptive and empirical literature in Industrial Organization abounds with reference to economies of scale, product differentiation, and absolute advantages in cost or demand enjoyed by some firms over others. In particular, they feature prominently in Bain's list of barriers to entry in....

The Making of Economic Policy begins by observing that most countries' trade policies are so blatantly contrary to all the prescriptions of the economist that there is no way to understand this discrepancy except by delving into the politics. The same is true for many other dimensions of...

How can property rights be protected and contracts be enforced in countries where the rule of law is ineffective or absent? How can firms from advanced market economies do business in such circumstances? In <I>Lawlessness and Economics</I>, Avinash Dixit examines the theory of private institutions that...</i>