Generalized microeconomics

"This publication summarizes the results of theoretical research at the Faculty of Social Sciences at Charles University. The objective of this research was to generalize microeconomics so as to enable modelling of economic rationality even in fields that standard microeconomics more or less avoids like, for example, modelling of behaviour of a firm in a centrally planned economy, modelling the non-profit sectors of market economies, altruism or externalities. In our view, abandoning the homo economicus paradigm and replacing it with a different paradigm with an agent criterion function that conflicts with profit maximization is an impassable route. We have opted for a different path: we try to broaden the scope of microeconomics while treating standard profit/utility maximization as a special case. For us, the generalizing criterion is 'Darwinian' maximization of the probability of survival"--Page 4 of cover.

Translation of: Zobecněná mikroekonomie.

The generalized principle of economic rationality -- Modelling risk and hedging against it -- Moral hazard and adverse selection in the context of maximization of the probability of economic survival -- The demand function in the insurance market : comparison of maximization of the pareto probability of survival with the von Neumann-Morgenstern EU theory and Kahneman-Tversky prospect theory -- Modelling non-profit institutions : the university supply function -- Behaviour of a firm in a centrally planned economy : the homo se assecurans model -- Model of an economy with widespread corporate insolvency -- The producers' optimum under increasing returns to scale -- Models of market allocation of externalities, generalized Coase theorem -- Altruism and redistribution increasing the probability of survival of individuals.