Currently the microeconomics textbook that I recommend to students is Luke Froeb's co-authored, "Managerial Economics: A Problem Solving Approach" (see here for a great video). The framework used throughout the book is very Austrian, in that it focuses on the knowledge and incentive mechanisms that coordinate behaviour. He presents a superb problem-solving process:
- Identify the decision maker
- Did they have the right incentives?
- Did they have the right knowledge?
This first step is crucial since it grounds organisational behaviour in a methodological individualism. Indeed this is something about the Case Method that I've only just realised - they almost always have a central protagonist. Whilst the macroeconomic cases tend to focus on country risk assesments (as is unfortunately an inevitable aspect of macro study), the vast majority of other cases are from the persepctive of an individual decision maker. Students aren't lulled into attributing explanatory power on non-human actors - they are grounded in choice.
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