¿This is the second book of a two-volume set that continues Adam Smith's work using the tools
mathematical experimental and behavioural economists have developed since 1776. As in the
first volume markets are not the central organising principle. Instead attention centres on
social institutions and the division of labour that they enable. The book studies this via the
endogenous division of labour that existing institutions help form. The first book in the
series examined this problem deeply resorting minimally to formal mathematical modelling the
second volume is where the formal modelling blossoms. General equilibrium theory meets network
theory and receives a breath of fresh air including a new viewpoint on economic inequality
the newly resurgent bane of capitalism. What I said for the first volume applies to this second
volume equally: if you care to understand the economy this book belongs to your bookshelf.¿
¿Dimitrios Diamantaras Temple University Philadelphia USA This textbook introduces and
develops new tools to understand the recent economic crisis and how desirable economic policies
can be adopted. Gilles provides new institutional concepts for wealth creation such as network
economies which are based on the social division of labour.This second volume introduces
mathematical theories of the endogenous formation of social divisions of labour through which
economic wealth is created. Gilles also investigates the causes of inequality in the social
division of labour under imperfectly competitive conditions. These theories frame a
comprehensive innovative and consistent perspective on the functioning of the twenty-first
century global economy explaining many of its failings. Suitable reading for advanced
undergraduate MSc and postgraduate students in microeconomic analysis economic theory and
political economy.
