Martin Shubik

Martin Shubik was Seymour Knox Professor of Mathematical Institutional Economics (Emeritus) at Yale University's Cowles Foundation and School of Management and the author of the three-volume work The Theory of Money and Financial Institutions (MIT Press) and other books. He was also External Faculty of the Santa Fe Institute.

  • The Guidance of an Enterprise Economy

    The Guidance of an Enterprise Economy

    Martin Shubik and Eric Smith

    A rigorous theory of money, credit, and bankruptcy in the context of a mixed economy, uniting Walrasian general equilibrium with macroeconomic dynamics and Schumpeterian innovation.

    This book offers a rigorous study of control, guidance, and coordination problems of an enterprise economy, with attention to the roles of money and financial institutions. The approach is distinctive in drawing on game theory, methods of physics and experimental gaming, and, more generally, a broader evolutionary perspective from the biological and behavioral sciences. The proposed theory unites Walrasian general equilibrium with macroeconomic dynamics and Schumpeterian innovation utilizing strategic market games. Problems concerning the meaning of rational economic behavior and the concept of solution are noted.

    The authors argue that process models of the economy can be built that are consistent with the general equilibrium system but become progressively more complex as new functions are added. Explicit embedding of the economy within the framework of government and society provides a natural, both formal and informal, control system.

    The authors describe how to build and analyze multistate models with simple assumptions about behavior, and develop a general modeling methodology for the construction of models as playable games.

    • Hardcover $65.00 £55.00
  • The Theory of Money and Financial Institutions, Volume 3

    The Theory of Money and Financial Institutions, Volume 3

    Martin Shubik

    The third and last volume of a work aimed at providing the theoretical underpinnings for an economic dynamics.

    This is the third and last volume of Martin Shubik's exposition of his vision of “mathematical institutional economics”—a term he coined in 1959 to describe the theoretical underpinnings needed for the construction of an economic dynamics. The goal is to develop a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomics, using strategic market games and other game-theoretic methods.

    There is as yet no general dynamic counterpart to the elegant and mathematically well-developed static theory of general equilibrium. Shubik's paradigm serves as an intermediate step between general equilibrium and full dynamics. General equilibrium provides valuable insights on relationships in a closed, friction-free economic structure. Shubik aims to open up this limited structure to the rich environment of sociopolitical economy without dispensing with conceptual continuity.

    Volume 3 considers the specific roles of financial institutions and government, aiming to provide the link between the abstract study of invariant economic and financial functions and the ever-changing institutions that provide these functions. The concept of minimal financial institutions is stressed as a means to connect function with form in a parsimonious manner.

    • Hardcover $12.75 £10.99
    • Paperback $6.75 £5.99
  • The Theory of Money and Financial Institutions, Volume 1

    The Theory of Money and Financial Institutions, Volume 1

    Martin Shubik

    This first volume in a three-volume exposition of Shubik's vision of "mathematical institutional economics" explores a one-period approach to economic exchange with money, debt, and bankruptcy.

    This is the first volume in a three-volume exposition of Martin Shubik's vision of "mathematical institutional economics"—a term he coined in 1959 to describe the theoretical underpinnings needed for the construction of an economic dynamics. The goal is to develop a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomics, using as a prime tool the theory of games in strategic and extensive form. The approach involves a search for minimal financial institutions that appear as a logical, technological, and institutional necessity, as part of the "rules of the game." Money and financial institutions are assumed to be the basic elements of the network that transmits the sociopolitical imperatives to the economy. Volume 1 deals with a one-period approach to economic exchange with money, debt, and bankruptcy. Volume 2 explores the new economic features that arise when we consider multi-period finite and infinite horizon economies. Volume 3 will consider the specific role of financial institutions and government, and formulate the economic financial control problem linking micro- and macroeconomics.

    • Hardcover $60.00 £50.00
    • Paperback $19.75 £15.99
  • The Theory of Money and Financial Institutions, Volume 2

    The Theory of Money and Financial Institutions, Volume 2

    Martin Shubik

    This second volume in a three-volume exposition of Shubik's vision of "mathematical institutional economics" explores the new economic features that arise when we consider multi-period finite and infinite horizon economies.

    This is the second volume in a three-volume exposition of Martin Shubik's vision of "mathematical institutional economics"—a term he coined in 1959 to describe the theoretical underpinnings needed for the construction of an economic dynamics. The goal is to develop a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomics, using as a prime tool the theory of games in strategic and extensive form. The approach involves a search for minimal financial institutions that appear as a logical, technological, and institutional necessity, as part of the "rules of the game." Money and financial institutions are assumed to be the basic elements of the network that transmits the sociopolitical imperatives to the economy.

    Volume 1 deals with a one-period approach to economic exchange with money, debt, and bankruptcy. Volume 2 explores the new economic features that arise when we consider multi-period finite and infinite horizon economies. Volume 3 will consider the specific role of financial institutions and government, and formulate the economic financial control problem linking micro- and macroeconomics.

    • Hardcover $60.00 £50.00
    • Paperback $19.75 £15.99
  • A Game-Theoretic Approach to Political Economy, Volume 2

    Game Theory in the Social Sciences

    Martin Shubik

    This companion volume to Shubik's masterful Game Theory in the Social Sciences sketches a unification of several branches of political economy on the basis of the theory of games. In five parts it covers basic factors that make economic decision making different from properties of economic goods, money, and wealth - static, one-sided, open model of oligopolistic competition; cooperative models of closed economic systems; strategic models of closed economic systems, and externalities and public goods. This final section explores a number of applications, including land ownership, voting, and the assignment of joint costs. The book concludes with an outline of a series of games within a game as a portrayal of a politico-economic process in a democratic society with a two-party system and public and private sectors. The approach adopted points the way toward a possible reconciliation of micro-and macroeconomics and an integration of economic, political, and sociological descriptions in the study of the short-term function of the state.

    • Hardcover $50.00
    • Paperback $25.00
  • Game Theory in the Social Sciences, Volume 1

    Game Theory in the Social Sciences, Volume 1

    Concepts and Solutions

    Martin Shubik

    Winner of the 1983 Lanchester Prize of the Operations Research Society of AmericaThis book by a recognized authority on game theory and its applications introduces social scientists in a variety of disciplines to this powerful methodology. The emphasis throughout is on the empirical approach to model building and testing within the context of real-world situations.

    The second volume of Game Theory in the Social Sciences, A Game Theoretic Approach to Political Economy was published by The MIT Press in 1984.

    • Hardcover $40.00
    • Paperback $45.00 £38.00