Titlebook: Economics in a Changing World; Volume 2: Microecono Beth Allen Book 1996 Palgrave Macmillan, a division of Macmillan Publishers Limited 199

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The History of Black Consciousness,My assignment here is very broad: to discuss general equilibrium theory. However, rather than attempting a general survey of this topic, I will focus selectively, with varying degrees of emphasis, on the current research areas that I consider most interesting and fruitful to pursue.

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Aggregation, Learning and RationalityThe assumption that individual economic units behave ‘rationally’ is widely used in many areas of economic theorizing, be it in microeconomics or macroeconomics. The purpose of this chapter is to review briefly a few recent studies that tend to challenge two aspects of this assumption.

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M. Thomas Inge,Maurice Duke,Jackson R. Bryeris objective of firms has a sound economic interpretation. Profit maximization is well defined, it serves the needs of the shareholders, and shareholders unanimously instruct the managers of firms to maximize profits.

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African American Girls in Hollywood Cinema, it is difficult to provide a solid theoretical or empirical justification for Nash equilibrium behaviour. ‘Rationality’, or even ‘common knowledge of rationality’, is not enough to generate such behaviour. Among other things, one also needs to assume that the players coordinate their beliefs about

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