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A good basic understanding of general equilibrium theory is a fundamental and indispensable background for advanced work in virtually any sub-field of economics; and a thorough understanding of the methods of welfare economics, particularly in a general equilibrium context, is indispensable for investigators undertaking applied policy analysis. This book addresses these needs and requirements by emphasizing the basic underpinnings of general equilibrium and welfare economics. In particular, the theory of choice, which is fundamental to both areas, is developed in a very comprehensive and rigorous fashion. Moreover, extensive use is made of examples, both of the simple type intended to bolster the student’s understanding of the basic concepts, and those illustrating the application of the material to field areas in economics.
From the reviews: "The excellent textbook covers essential topics in the mathematical theory of markets, and it is addressed for a second semester of microeconomic theory as required by most Ph.D. programs in economics. ... The book contains 40 figures and 11 tables, and some exercises to test the reader's understanding at the end of each chapter. ... the book covers the topic in a very lucid and useful way and is an excellent resource for the first year Ph.D. students it aims at." (G. Chichilnisky, Mathematical Reviews, Issue 2007 j) "Even though the author treats his book only as a graduate-level textbook in general equilibrium and welfare economics, it is in fact a very rich and comprehensive scientific encyclopedia ... which can also be seen as highly attractive and very useful by university workers developing different aspects of economics in a general equilibrium context. ... The book is written in a very rigorous fashion and has a very clear form at the same time. All the chapters begin with introducing the readers into the topic." (Tadeusz Radzik, Zentralblatt MATH, Vol. 1128 (6), 2008)