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JACK HIRSHLEIFER
University of California, Los Angeles
AMIHAI GLAZER
University of California, Irvine
DAVID HIRSHLEIFER
Ohio State University
SEVENTH EDITION
PRICE THEORY AND APPLICATIONS
SEVENTH EDITION
This new seventh edition of Price Theory and Applications adds extensive discussion of information,
uncertainty, and game theory. It contains more than 100 real-world examples
illustrating the applicability of economic analysis not only to mainline economic topics but
also to issues in politics, history, biology, the family, and many other areas. These discussions
generally describe recent research published in scholarly books and articles, giving
students a good idea of the scientific work done by professional economists. In addition, at
appropriate places the text provides “Applications” representing more extended discussions
of selected topics including rationing in wartime (Chapter 5), import quotas (Chapter 7),
alleged monopolistic suppression of inventions (Chapter 9), minimum wage laws (Chapter
12), the effects of Social Security onsaving (Chapter 15), fair division of disputed property
(Chapter 16), and whether one should pay ransom to a kidnapper (Chapter 17).
Jack Hirshleifer is Distinguished Professor of Economics, Emeritus, at the University of
California, Los Angeles (UCLA). He is the author or coauthor of the six previous editions
of Price Theory and Applications and the author or coauthor of six other books, including
The Analytics of Uncertainty and Information (1992, with John G. Riley) and The Dark Side
of the Force (2001), both published by Cambridge University Press. Professor Hirshleifer
is a Fellow of the American Academy of Arts and Sciences and the Econometric Society, a
former president of the Western Economic Association, and a former vice president of the
American Economic Association, which named him a Distinguished Fellow in 2000.He has
served on the editorial boards of the American Economic Review, the Journal of Economic
Behavior and Organization, and the Journal of Bioeconomics.
Amihai Glazer is Professor of Economics at the University of California, Irvine. He has
taught at theHebrewUniversity, CarnegieMellonUniversity, and theUniversity of Tampere,
Finland. The author of more than 80 articles in professional journals, Professor Glazer is
coauthor with JackHirshleifer of the fifth edition of Price Theory and Applications, coauthor
with LaurenceRothenbergofWhyGovernment Succeeds andWhy ItFails (2001),andcoeditor
withKaiKonrad of Conflict and Governance (2003).He is a coeditor of the journal Economics
of Governance.
David Hirshleifer is the Ralph M. Kurtz Professor of Finance at the Ohio State University.
He previously taught at the Anderson School of UCLA and the University of Michigan
Business School. The coauthor with Jack Hirshleifer of the sixth edition of Price Theory and
Applications, DavidHirshleifer has served as a director of the American Finance Association,
as editor of the Review of Financial Studies, and as associate editor or coeditor of several
other journals in finance, economics, and corporate strategy. His papers have received a
number of research awards, including the 1999 Smith–Breeden Award for the outstanding
paper in the Journal of Finance.
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