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Reissued in the Cambridge Mathematical Library this classic book outlines the theory of thermodynamic formalism which was developed to describe the properties of certain physical systems consisting of a large number of subunits. It is aimed at mathematicians interested in ergodic theory, topological dynamics, constructive quantum field theory, the study of certain differentiable dynamical systems, notably Anosov diffeomorphisms and flows. It is also of interest to theoretical physicists concerned with the conceptual basis of equilibrium statistical mechanics. The level of the presentation is generally advanced, the objective being to provide an efficient research tool and a text for use in graduate teaching. Background material on mathematics has been collected in appendices to help the reader. Extra material is given in the form of updates of problems that were open at the original time of writing and as a new preface specially written for this new edition by the author.