- Title Pages
- Dedication
- Preface
-
Chapter One An overview -
Chapter Two The theory choice and of consumer demand -
Chapter Three Choice under uncertainty -
Chapter Four Dynamic choice -
Chapter Five Social choice and efficiency -
Chapter Six Pure exchange and general equilibrium -
Chapter Seven The neoclassical firm -
Chapter Eight The competitive firm and perfect competition -
Chapter Nine Monopoly -
Chapter Ten Imperfect competition -
Chapter Eleven Modeling competitive situations -
Chapter Twelve Solution concepts for noncooperative games -
Chapter Thirteen Incomplete information and irrationality -
Chapter Fourteen Repeated play: Cooperation and reputation -
Chapter Fifteen Bilateral bargaining -
Chapter Sixteen Moral hazard and incentives -
Chapter Seventeen Adverse selection and market signaling -
Chapter Eighteen The revelation principle and mechanism design -
Chapter Nineteen Theories of the firm -
Chapter Twenty Transaction cost economics and the firm - postscript
-
appendix one Constrained optimization -
appendix two Dynamic programming - Index
Dynamic choice
Dynamic choice
- Chapter:
- (p.132) (p.133) Chapter Four Dynamic choice
- Source:
- A Course in Microeconomic Theory
- Author(s):
David M. Kreps
- Publisher:
- Princeton University Press
This chapter investigates the issue of dynamic choice. Many important choices made in economic contexts are made through time. The consumer takes some action today, knowing that subsequent choices will be required tomorrow and the day following and so on. And today's choice has impact on either how the consumer views later choices or what choices will later be available or both. This can be referred to as a situation of dynamic choice. The chapter discusses how economists model the process of dynamic choice. In microeconomics, the issue of dynamic choice is usually dealt with by reducing dynamic choice to the static choice of an optimal dynamic strategy which is then carried out. The chapter examines this standard approach before considering a pair of alternatives.
Keywords: dynamic choice, consumer choice, microeconomics, static choice, optimal dynamic strategy
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- Title Pages
- Dedication
- Preface
-
Chapter One An overview -
Chapter Two The theory choice and of consumer demand -
Chapter Three Choice under uncertainty -
Chapter Four Dynamic choice -
Chapter Five Social choice and efficiency -
Chapter Six Pure exchange and general equilibrium -
Chapter Seven The neoclassical firm -
Chapter Eight The competitive firm and perfect competition -
Chapter Nine Monopoly -
Chapter Ten Imperfect competition -
Chapter Eleven Modeling competitive situations -
Chapter Twelve Solution concepts for noncooperative games -
Chapter Thirteen Incomplete information and irrationality -
Chapter Fourteen Repeated play: Cooperation and reputation -
Chapter Fifteen Bilateral bargaining -
Chapter Sixteen Moral hazard and incentives -
Chapter Seventeen Adverse selection and market signaling -
Chapter Eighteen The revelation principle and mechanism design -
Chapter Nineteen Theories of the firm -
Chapter Twenty Transaction cost economics and the firm - postscript
-
appendix one Constrained optimization -
appendix two Dynamic programming - Index
