I recently got a copy of John G. Riley’s Essential Microeconomics and today a copy of Microeconomic Foundations I: Choice and Competitive Markets by David M. Kreps. While I am pleased that Riley’s book covers standard general equilibrium approaches as well as game theory and mechanism design, I am intrigued by Kreps’s book, which covers “only” the necessities for a deep understanding of general equilibrium under certainty and uncertainty. From a very quick skimming, it appears that Kreps has incorporated in his latest book his famous lecture notes on decision theory of many years ago.
Even more, I am intrigued by the vague promise by Kreps in the preface of his book that he is planning two more volumes; one on “strategic interaction, information, and imperfect competition” and one on “institutions and behavior”. Given that I see less and less reason to teach the (admittedly quite beautiful) theory of general equilibrium, I am very impatient for the promised volumes to appear, as Kreps is a great explainer.