Felix Muñoz-Garcia is a Professor in the School of Economic Sciences at Washington State University. He has established himself as a significant figure in economic education, particularly known for his ability to make complex subjects accessible. Beyond this text, he has authored and co-authored several other notable works that adopt a similar step-by-step, example-driven approach:
The book covers the full spectrum of advanced microeconomic topics, each chapter building on the last to create a cohesive understanding of how markets and agents behave.
, is a graduate-level textbook designed to bridge the gap between undergraduate and Ph.D.-level microeconomics. Core Conceptual Framework
Connect abstract theories to modern mechanisms. Look at how general equilibrium and matching theories are used in the real world to run Google ad auctions, allocate spectrum frequencies for telecommunications, or match medical residents to hospitals. Felix Muñoz-Garcia is a Professor in the School
The UMP assumes consumers maximize their well-being (utility) subject to a budget constraint. subject to
Consumer theory is a fundamental aspect of microeconomics. It describes how households make decisions about what goods and services to consume, given their budget constraints and preferences.
Game theory is a branch of microeconomics that studies strategic decision-making. , is a graduate-level textbook designed to bridge
Modeled mathematically by the curvature of the utility function. A concave utility function (
: The book focuses on the "why" behind mathematical assumptions. It explains the intuition immediately after presenting theoretical findings. Step-by-Step Examples
A technology firm deciding whether to hire more software engineers or buy more servers. They will choose the mix where the last dollar spent on engineers brings the same return as the last dollar spent on servers (tangency of isoquant and isocost lines). 3. Game Theory and Strategic Behavior exploring agency problems
: Choice under uncertainty, externalities, public goods, and contract theory. Unique Features
In introductory economics, concepts are taught using two-dimensional graphs. In advanced microeconomics, those graphs are replaced by
You have a target level of happiness or standard of living you want to achieve. What is the absolute minimum amount of money you need to spend to get there?
Beyond its intuitive narrative, the book is packed with pedagogical features designed to reinforce learning and facilitate deeper engagement.
One of the most significant contributions of the intuitive approach is its treatment of the "Black Box" of the firm. In standard intermediate microeconomics, the firm is a production function—an input-output matrix. Advanced theory seeks to open this box, exploring agency problems, moral hazard, and asymmetric information.