Intermediate microeconomics: a modern approach
Gespeichert in:
1. Verfasser: | |
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Format: | Buch |
Sprache: | English |
Veröffentlicht: |
New York [u.a.]
Norton
2006
|
Ausgabe: | 7. ed., internat. student ed. |
Schlagworte: | |
Online-Zugang: | Inhaltsverzeichnis |
Beschreibung: | XXIV, 715, 39 S. graph. Darst. |
ISBN: | 0393927024 0393928624 9780393928624 |
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adam_text | CONTENTS
Preface xix
1 The Market
Constructing a Model 1 Optimization and Equilibrium 3 The De¬
mand Curve 3 The Supply Curve 5 Market Equilibrium 7 Com¬
parative Statics 9 Other Ways to Allocate Apartments 11 The Dis¬
criminating Monopolist • The Ordinary Monopolist • Rent Control •
Which Way Is Best? 14 Pareto Efficiency 15 Comparing Ways to Al¬
locate Apartments 16 Equilibrium in the Long Run 17 Summary 18
Review Questions 19
2 Budget Constraint
The Budget Constraint 20 Two Goods Are Often Enough 21 Prop¬
erties of the Budget Set 22 How the Budget Line Changes 24 The
Numeraire 26 Taxes. Subsidies, and Rationing 26 Example: The
Food Stamp Program Budget Line Changes 31 Summary 31 Review
Questions 32
VIM CONTENTS
3 Preferences
Consumer Preferences 34 Assumptions about Preferences 35 Indif¬
ference Curves 36 Examples of Preferences 37 Perfect Substitutes
• Perfect Complements • Bads • Neutrals • Satiation • Discrete
Goods • Well Behaved Preferences 44 The Marginal Rate of Substitu¬
tion 48 Other Interpretations of the MRS 50 Behavior of the MRS
51 Summary 52 Review Questions 52
4 Utility
Cardinal Utility 57 Constructing a Utility Function 58 Some Exam¬
ples of Utility Functions 59 Example: Indifference Curves from Utility
Perfect Substitutes • Perfect Complements • Quasilinear Preferences
• Cobb Douglas Preferences • Marginal Utility 65 Marginal Utility
and MRS 66 Utility for Commuting 67 Summary 69 Review
Questions 70 Appendix 70 Example: Cobb Douglas Preferences
5 Choice
Optimal Choice 73 Consumer Demand 78 Some Examples 78
Perfect Substitutes • Perfect Complements • Neutrals and Bads •
Discrete Goods • Concave Preferences • Cobb Douglas Preferences •
Estimating Utility Functions 83 Implications of the MRS Condition 85
Choosing Taxes 87 Summary 89 Review Questions 89 Appen¬
dix 90 Example: Cobb Douglas Demand Functions
6 Demand
Normal and Inferior Goods 96 Income Offer Curves and Engel Curves
97 Some Examples 99 Perfect Substitutes • Perfect Complements
• Cobb Douglas Preferences • Homothetic Preferences • Quasilinear
Preferences • Ordinary Goods and Giffen Goods 104 The Price Offer
Curve and the Demand Curve 106 Some Examples 107 Perfect
Substitutes • Perfect Complements • A Discrete Good • Substitutes
and Complements 111 The Inverse Demand Function 112 Summary
114 Review Questions 115 Appendix 115
CONTENTS IX
7 Revealed Preference
The Idea of Revealed Preference 119 From Revealed Preference to Pref¬
erence 120 Recovering Preferences 122 The Weak Axiom of Re¬
vealed Preference 124 Checking WARP 125 The Strong Axiom of
Revealed Preference 128 How to Check SARP 129 Index Numbers
130 Price Indices 132 Example: Indexing Social Security Payments
Summary 135 Review Questions 135
8 Slutsky Equation
The Substitution Effect 137 Example: Calculating the Substitution Ef¬
fect The Income Effect 141 Example: Calculating the Income Effect
Sign of the Substitution Effect 142 The Total Change in Demand 143
Rates of Change 144 The Law of Demand 147 Examples of Income
and Substitution Effects 147 Example: Rebating a Tax Example:
Voluntary Real Time Pricing Another Substitution Effect 153 Com¬
pensated Demand Curves 155 Summary 156 Review Questions 157
Appendix 157 Example: Rebating a Small Tax
9 Buying and Selling
Net and Gross Demands 160 The Budget Constraint 161 Changing
the Endowment 163 Price Changes 164 Offer Curves and Demand
Curves 167 The Slutsky Equation Revisited 168 Use of the Slut
sky Equation 172 Example: Calculating the Endowment Income Effect
Labor Supply 173 The Budget Constraint • Comparative Statics of
Labor Supply 174 Example: Overtime and the Supply of Labor Sum¬
mary 178 Review Questions 179 Appendix 179
X CONTENTS
10 Intertemporal Choice
The Budget Constraint 182 Preferences for Consumption 185 Com¬
parative Statics 186 The Slutsky Equation and Intertemporal Choice
187 Inflation 189 Present Value: A Closer Look 191 Analyz¬
ing Present Value for Several Periods 193 Use of Present Value 194
Example: Valuing a Stream of Payments Example: The True Cost of a
Credit Card Bonds 197 Example: Installment Loans Taxes 199
Example: Scholarships and Savings Choice of the Interest Rate 200
Summary 201 Review Questions 201
11 Asset Markets
Rates of Return 202 Arbitrage and Present Value 204 Adjustments
for Differences among Assets 204 Assets with Consumption Returns
205 Taxation of Asset Returns 206 Applications 207 Depletable
Resources • When to Cut a Forest • Example: Gasoline Prices during
the Gulf War Financial Institutions 211 Summary 212 Review
Questions 213 Appendix 213
12 Uncertainty
Contingent Consumption 215 Example: Catastrophe Bonds Utility
Functions and Probabilities 220 Example: Some Examples of Utility
Functions Expected Utility 221 Why Expected Utility Is Reasonable
222 Risk Aversion 224 Example: The Demand for Insurance Di¬
versification 228 Risk Spreading 228 Role of the Stock Market 229
Summary 230 Review Questions 230 Appendix 231 Example:
The Effect of Taxation on Investment in Risky Assets
13 Risky Assets
Mean Variance Utility 234 Measuring Risk 239 Equilibrium in a
Market for Risky Assets 241 How Returns Adjust 242 Example:
Ranking Mutual Funds Summary 246 Review Questions 246
CONTENTS XI
14 Consumer s Surplus
Demand for a Discrete Good 248 Constructing Utility from Demand
249 Other Interpretations of Consumer s Surplus 250 From Con¬
sumer s Surplus to Consumers Surplus 251 Approximating a Continu¬
ous Demand 251 Quasilinear Utility 251 Interpreting the Change in
Consumer s Surplus 252 Example: The Change in Consumer s Surplus
Compensating and Equivalent Variation 254 Example: Compensating
and Equivalent Variations Example: Compensating and Equivalent Vari¬
ation for Quasilinear Preferenees Producer s Surplus 258 Benefit Cost
Analysis 260 Rationing • Calculating Gains and Losses 262 Sum¬
mary 263 Review Questions 263 Appendix 264 Exam,ple: A
Few Demand Functions Example: CV, EV, and Consumer s Surplus
15 Market Demand
From Individual to Market Demand 266 The Inverse Demand Function
268 Example: Adding Up Linear Dem,and Curves Discrete Goods
269 The Extensive and the Intensive Margin 269 Elasticity 270
Example: The Elasticity of a Linear Demand Curve Elasticity and De¬
mand 272 Elasticity and Revenue 273 Example: Strikes and Profits
Constant Elasticity Demands 276 Elasticity and Marginal Revenue 277
Example: Setting a Price Marginal Revenue Curves 279 Income Elas¬
ticity 280 Summary 281 Review Questions 282 Appendix 283
Example: The Laffer Curve Example: Another Expression for Elasticity
16 Equilibrium
Supply 289 Market Equilibrium 289 Two Special Cases 290 In¬
verse Demand and Supply Curves 291 Example: Equilibrium with Lin¬
ear Curves Comparative Statics 293 Example: Shifting Both Curves
Taxes 294 Example: Taxation with Linear Demand and Supply Pass¬
ing Along a Tax 298 The Deadweight Loss of a Tax 300 Example:
The Market for Loans Example: Food Subsidies Example: Subsidies in
Iraq Pareto Efficiency 306 Example: Waiting in Line Summary 309
Review Questions 309
XII CONTENTS
17 Auctions
Classification of Auctions 312 Bidding Rules • Auction Design 313
Other Auction Forms 316 Example: Late Bidding on eBay Example:
Online Ad Auctions Problems with Auctions 319 The Winner s Curse
320 Summary 320 Review Questions 321
18 Technology
Inputs and Outputs 322 Describing Technological Constraints 323
Examples of Technology 324 Fixed Proportions • Perfect Substitutes
• Cobb Douglas • Properties of Technology 326 The Marginal Product
328 The Technical Rate of Substitution 328 Diminishing Marginal
Product 329 Diminishing Technical Rate of Substitution 329 The
Long Run and the Short Run 330 Returns to Scale 330 Summary
332 Review Questions 333
19 Profit Maximization
Profits 334 The Organization of Firms 336 Profits and Stock Market
Value 336 The Boundaries of the Firm 338 Fixed and Variable Fac¬
tors 339 Short Run Profit Maximization 339 Comparative Statics
341 Profit Maximization in the Long Run 342 Inverse Factor Demand
Curves 343 Profit Maximization and Returns to Scale 344 Revealed
Profitability 345 Example: How Do Farmers React to Price Supports?
Cost Minimization 349 Summary 349 Review Questions 350 Ap¬
pendix 351
20 Cost Minimization
Cost Minimization 353 Example: Minimizing Costs for Specific Tech¬
nologies Revealed Cost Minimization 357 Returns to Scale and the
Cost Function 358 Long Run and Short Run Costs 360 Fixed and
Quasi Fixed Costs 362 Sunk Costs 362 Summary 363 Review
Questions 363 Appendix 364
CONTENTS XIII
21 Cost Curves
Average Costs 367 Marginal Costs 369 Marginal Costs and Variable
Costs 371 Example: Specific Cost Curves Example: Marginal Cost
Curves for Two Plants Long Run Costs 375 Discrete Levels of Plant
Size 377 Long Run Marginal Costs 379 Summary 380 Review
Questions 381 Appendix 381
22 Firm Supply
Market Environments 383 Pure Competition 384 The Supply Deci¬
sion of a Competitive Firm 386 An Exception 388 Another Exception
389 Example: Pricing Operating Systems The Inverse Supply Func¬
tion 391 Profits and Producer s Surplus 391 Example: The Supply
Curve for a Specific Cost Function The Long Run Supply Curve of a Firm
395 Long Run Constant Average Costs 397 Summary 398 Review
Questions 399 Appendix 399
23 Industry Supply
Short Run Industry Supply 401 Industry Equilibrium in the Short Run
402 Industry Equilibrium in the Long Run 403 The Long Run Supply
Curve 405 Example: Taxation in the Long Run and in the Short. Rim
The Meaning of Zero Profits 409 Fixed Factors and Economic Rent
410 Example: Taxi Licenses in New York City Economic Rent 412
Rental Rates and Prices 414 Example: Liquor Licenses The Politics
of Rent 415 Example: Farming the Government Energy Policy 417
Two Tiered Oil Pricing • Price Controls • The Entitlement Program
• Summary 421 Review Questions 422
XIV CONTENTS
24 Monopoly
Maximizing Profits 424 Linear Demand Curve and Monopoly 425
Markup Pricing 427 Example: The Impact of Taxes on a Monopo¬
list Inefficiency of Monopoly 429 Deadweight Loss of Monopoly 431
Example: The Optimal Life of a Patent Example: Patent Thickets Nat¬
ural Monopoly 435 What Causes Monopolies? 437 Example: Di¬
amonds Are Forever Example: Pooling in Auction Markets Example:
Price Fixing in Computer Memory Markets Summary 441 Review
Questions 442 Appendix 443
25 Monopoly Behavior
Price Discrimination 445 First Degree Price Discrimination 445 Ex¬
ample: First degree Price Discrimination in Practice Second Degree Price
Discrimination 448 Example: Price Discrimination in Airfares Ex¬
ample: Prescription Drug Prices Third Degree Price Discrimination 452
Example: Linear Demand Curves Example: Calculating Optimal Price
Discrimination Example: Price Discrimination in Academic Journals
Bundling 457 Example: Software Suites Two Part Tariffs 458 Mo¬
nopolistic Competition 459 A Location Model of Product Differentiation
463 Product Differentiation 465 More Vendors 466 Summary 467
Review Questions 467
26 Factor Markets
Monopoly in the Output Market 468 Monopsony 471 Example: The
Minimum Wage Upstream and Downstream Monopolies 475 Summary
477 Review Questions 478 Appendix 478
CONTENTS XV
27 Oligopoly
Choosing a Strategy 481 Quantity Leadership 481 The Follower s
Problem • The Leader s Problem • Price Leadership 487 Comparing
Price Leadership and Quantity Leadership 489 Simultaneous Quantity
Setting 489 An Example of Cournot Equilibrium 491 Adjustment to
Equilibrium 493 Many Firms in Cournot Equilibrium 493 Simulta¬
neous Price Setting 494 Collusion 495 Punishment Strategies 498
Example: Price Matching and Competition Example: Voluntary Export
Restraints Comparison of the Solutions 501 Summary 502 Review
Questions 503
28 Game Theory
The Payoff Matrix of a Game 504 Nash Equilibrium 506 Mixed
Strategies 507 Example: Rock Paper Scissors The Prisoner s Dilemma
509 Repeated Games 511 Enforcing a Cartel 512 Example: Tit
for Tat in Airline Pricing Sequential Games 514 A Game of Entry
Deterrence 516 Summary 518 Review Questions 519
29 Game Applications
Best Response Curves 520 Mixed Strategies 522 Games of Coordi¬
nation 524 Battle of the Sexes • Prisoner s Dilemma • Assurance
Games • Chicken • How to Coordinate • Games of Competition 528
Games of Coexistence 533 Games of Commitment 535 The Frog and
the Scorpion • The Kindly Kidnapper • When Strength Is Weakness
• Savings and Social Security • Hold Up • Bargaining 543 The
Ultimatum Game • Summary 546 Review Questions 547
XVI CONTENTS
30 Behavioral Economics
Framing Effects in Consumer Choice 549 The Disease Dilemma •
Anchoring Effects • Bracketing • Too Much Choice • Constructed
Preferences • Uncertainty 553 Law of Small Numbers • Asset In¬
tegration and Loss Aversion • Time 556 Discounting • Self control
• Example: Overconfidence Strategic Interaction and Social Norms 558
Ultimatum Game • Fairness • Assessment of Behavioral Economics
560 Summary 561 Review Questions 563
31 Exchange
The Edgeworth Box 565 Trade 567 Pareto Efficient Allocations
568 Market Trade 570 The Algebra of Equilibrium 572 Walras
Law 574 Relative Prices 575 Example: An Algebraic Example of
Equilibrium The Existence of Equilibrium 577 Equilibrium and Effi¬
ciency 578 The Algebra of Efficiency 579 Example: Monopoly in
the Edgeworth Box Efficiency and Equilibrium 582 Implications of the
First Welfare Theorem 584 Implications of the Second Welfare Theorem
586 Summary 588 Review Questions 589 Appendix 589
32 Production
The Robinson Crusoe Economy 591 Crusoe, Inc. 593 The Firm 594
Robinson s Problem 595 Putting Them Together 595 Different Tech¬
nologies 597 Production and the First Welfare Theorem 599 Produc¬
tion and the Second Welfare Theorem 600 Production Possibilities 600
Comparative Advantage 602 Pareto Efficiency 604 Castaways, Inc.
606 Robinson and Friday as Consumers 608 Decentralized Resource
Allocation 609 Summary 610 Review Questions 610 Appen¬
dix 611
CONTENTS XVII
33 Welfare
Aggregation of Preferences 614 Social Welfare Functions 616 Welfare
Maximization 618 Individualistic Social Welfare Functions 620 Fair
Allocations 621 Envy and Equity 622 Summary 624 Review
Questions 624 Appendix 625
34 Externalities
Smokers and Nonsmokers 627 Quasilinear Preferences and the Coase
Theorem 630 Production Externalities 632 Example: Pollution
Vouchers Interpretation of the Conditions 637 Market Signals 640
Example: Bees and Almonds The Tragedy of the Commons 641 Ex¬
ample: Overfishing Example: New England Lobsters Automobile Pollu¬
tion 645 Summary 647 Review Questions 647
35 Information Technology
Systems Competition 650 The Problem of Complements 650 Re¬
lationships among Complementers • Lock In 654 A Model of Com¬
petition with Switching Costs • Example: Online Bill Payment Ex¬
ample: Number Portability on Cell Phones Network Externalities 658
Markets with Network Externalities 658 Market Dynamics 660 Ex¬
ample: Network Externalities in Computer Software Implications of Net¬
work Externalities 664 Example: The Yellow Pages Rights Manage¬
ment 665 Example: Video Rental Sharing Intellectual Property 667
Summary 669 Review Questions 669
36 Public Goods
When to Provide a Public Good? 671 Private Provision of the Public
Good 675 Free Riding 675 Different Levels of the Public Good 677
Quasilinear Preferences and Public Goods 679 Example: Pollution Re¬
visited The Free Rider Problem 681 Comparison to Private Goods 683
Voting 684 Example: Agenda Manipulation Demand Revelation 687
Example: An Example of the Clarke Tax Problems with the Clarke Tax
691 Summary 692 Review Questions 692 Appendix 693
XVIII CONTENTS
37 Asymmetric Information
The Market for Lemons 695 Quality Choice 696 Choosing the Qual¬
ity • Adverse Selection 698 Moral Hazard 700 Moral Hazard and
Adverse Selection 701 Signaling 702 Example: The Sheepskin Effect
Incentives 706 Example: Voting Rights in the Corporation Example:
Chinese Economic Reforms Asymmetric Information 711 Example:
Monitoring Costs Example: The Grameen Bank Summary 714 Re¬
view Questions 715
Mathematical Appendix
Functions Al Graphs A2 Properties of Functions A2 Inverse
Functions A3 Equations and Identities A3 Linear Functions A4
Changes and Rates of Change A4 Slopes and Intercepts A5 Absolute
Values and Logarithms A6 Derivatives A6 Second Derivatives A7
The Product Rule and the Chain Rule A8 Partial Derivatives A8
Optimization A9 Constrained Optimization A10
Answers A11
Index A31
|
adam_txt |
CONTENTS
Preface xix
1 The Market
Constructing a Model 1 Optimization and Equilibrium 3 The De¬
mand Curve 3 The Supply Curve 5 Market Equilibrium 7 Com¬
parative Statics 9 Other Ways to Allocate Apartments 11 The Dis¬
criminating Monopolist • The Ordinary Monopolist • Rent Control •
Which Way Is Best? 14 Pareto Efficiency 15 Comparing Ways to Al¬
locate Apartments 16 Equilibrium in the Long Run 17 Summary 18
Review Questions 19
2 Budget Constraint
The Budget Constraint 20 Two Goods Are Often Enough 21 Prop¬
erties of the Budget Set 22 How the Budget Line Changes 24 The
Numeraire 26 Taxes. Subsidies, and Rationing 26 Example: The
Food Stamp Program Budget Line Changes 31 Summary 31 Review
Questions 32
VIM CONTENTS
3 Preferences
Consumer Preferences 34 Assumptions about Preferences 35 Indif¬
ference Curves 36 Examples of Preferences 37 Perfect Substitutes
• Perfect Complements • Bads • Neutrals • Satiation • Discrete
Goods • Well Behaved Preferences 44 The Marginal Rate of Substitu¬
tion 48 Other Interpretations of the MRS 50 Behavior of the MRS
51 Summary 52 Review Questions 52
4 Utility
Cardinal Utility 57 Constructing a Utility Function 58 Some Exam¬
ples of Utility Functions 59 Example: Indifference Curves from Utility
Perfect Substitutes • Perfect Complements • Quasilinear Preferences
• Cobb Douglas Preferences • Marginal Utility 65 Marginal Utility
and MRS 66 Utility for Commuting 67 Summary 69 Review
Questions 70 Appendix 70 Example: Cobb Douglas Preferences
5 Choice
Optimal Choice 73 Consumer Demand 78 Some Examples 78
Perfect Substitutes • Perfect Complements • Neutrals and Bads •
Discrete Goods • Concave Preferences • Cobb Douglas Preferences •
Estimating Utility Functions 83 Implications of the MRS Condition 85
Choosing Taxes 87 Summary 89 Review Questions 89 Appen¬
dix 90 Example: Cobb Douglas Demand Functions
6 Demand
Normal and Inferior Goods 96 Income Offer Curves and Engel Curves
97 Some Examples 99 Perfect Substitutes • Perfect Complements
• Cobb Douglas Preferences • Homothetic Preferences • Quasilinear
Preferences • Ordinary Goods and Giffen Goods 104 The Price Offer
Curve and the Demand Curve 106 Some Examples 107 Perfect
Substitutes • Perfect Complements • A Discrete Good • Substitutes
and Complements 111 The Inverse Demand Function 112 Summary
114 Review Questions 115 Appendix 115
CONTENTS IX
7 Revealed Preference
The Idea of Revealed Preference 119 From Revealed Preference to Pref¬
erence 120 Recovering Preferences 122 The Weak Axiom of Re¬
vealed Preference 124 Checking WARP 125 The Strong Axiom of
Revealed Preference 128 How to Check SARP 129 Index Numbers
130 Price Indices 132 Example: Indexing Social Security Payments
Summary 135 Review Questions 135
8 Slutsky Equation
The Substitution Effect 137 Example: Calculating the Substitution Ef¬
fect The Income Effect 141 Example: Calculating the Income Effect
Sign of the Substitution Effect 142 The Total Change in Demand 143
Rates of Change 144 The Law of Demand 147 Examples of Income
and Substitution Effects 147 Example: Rebating a Tax Example:
Voluntary Real Time Pricing Another Substitution Effect 153 Com¬
pensated Demand Curves 155 Summary 156 Review Questions 157
Appendix 157 Example: Rebating a Small Tax
9 Buying and Selling
Net and Gross Demands 160 The Budget Constraint 161 Changing
the Endowment 163 Price Changes 164 Offer Curves and Demand
Curves 167 The Slutsky Equation Revisited 168 Use of the Slut
sky Equation 172 Example: Calculating the Endowment Income Effect
Labor Supply 173 The Budget Constraint • Comparative Statics of
Labor Supply 174 Example: Overtime and the Supply of Labor Sum¬
mary 178 Review Questions 179 Appendix 179
X CONTENTS
10 Intertemporal Choice
The Budget Constraint 182 Preferences for Consumption 185 Com¬
parative Statics 186 The Slutsky Equation and Intertemporal Choice
187 Inflation 189 Present Value: A Closer Look 191 Analyz¬
ing Present Value for Several Periods 193 Use of Present Value 194
Example: Valuing a Stream of Payments Example: The True Cost of a
Credit Card Bonds 197 Example: Installment Loans Taxes 199
Example: Scholarships and Savings Choice of the Interest Rate 200
Summary 201 Review Questions 201
11 Asset Markets
Rates of Return 202 Arbitrage and Present Value 204 Adjustments
for Differences among Assets 204 Assets with Consumption Returns
205 Taxation of Asset Returns 206 Applications 207 Depletable
Resources • When to Cut a Forest • Example: Gasoline Prices during
the Gulf War Financial Institutions 211 Summary 212 Review
Questions 213 Appendix 213
12 Uncertainty
Contingent Consumption 215 Example: Catastrophe Bonds Utility
Functions and Probabilities 220 Example: Some Examples of Utility
Functions Expected Utility 221 Why Expected Utility Is Reasonable
222 Risk Aversion 224 Example: The Demand for Insurance Di¬
versification 228 Risk Spreading 228 Role of the Stock Market 229
Summary 230 Review Questions 230 Appendix 231 Example:
The Effect of Taxation on Investment in Risky Assets
13 Risky Assets
Mean Variance Utility 234 Measuring Risk 239 Equilibrium in a
Market for Risky Assets 241 How Returns Adjust 242 Example:
Ranking Mutual Funds Summary 246 Review Questions 246
CONTENTS XI
14 Consumer's Surplus
Demand for a Discrete Good 248 Constructing Utility from Demand
249 Other Interpretations of Consumer's Surplus 250 From Con¬
sumer's Surplus to Consumers' Surplus 251 Approximating a Continu¬
ous Demand 251 Quasilinear Utility 251 Interpreting the Change in
Consumer's Surplus 252 Example: The Change in Consumer's Surplus
Compensating and Equivalent Variation 254 Example: Compensating
and Equivalent Variations Example: Compensating and Equivalent Vari¬
ation for Quasilinear Preferenees Producer's Surplus 258 Benefit Cost
Analysis 260 Rationing • Calculating Gains and Losses 262 Sum¬
mary 263 Review Questions 263 Appendix 264 Exam,ple: A
Few Demand Functions Example: CV, EV, and Consumer's Surplus
15 Market Demand
From Individual to Market Demand 266 The Inverse Demand Function
268 Example: Adding Up "Linear" Dem,and Curves Discrete Goods
269 The Extensive and the Intensive Margin 269 Elasticity 270
Example: The Elasticity of a Linear Demand Curve Elasticity and De¬
mand 272 Elasticity and Revenue 273 Example: Strikes and Profits
Constant Elasticity Demands 276 Elasticity and Marginal Revenue 277
Example: Setting a Price Marginal Revenue Curves 279 Income Elas¬
ticity 280 Summary 281 Review Questions 282 Appendix 283
Example: The Laffer Curve Example: Another Expression for Elasticity
16 Equilibrium
Supply 289 Market Equilibrium 289 Two Special Cases 290 In¬
verse Demand and Supply Curves 291 Example: Equilibrium with Lin¬
ear Curves Comparative Statics 293 Example: Shifting Both Curves
Taxes 294 Example: Taxation with Linear Demand and Supply Pass¬
ing Along a Tax 298 The Deadweight Loss of a Tax 300 Example:
The Market for Loans Example: Food Subsidies Example: Subsidies in
Iraq Pareto Efficiency 306 Example: Waiting in Line Summary 309
Review Questions 309
XII CONTENTS
17 Auctions
Classification of Auctions 312 Bidding Rules • Auction Design 313
Other Auction Forms 316 Example: Late Bidding on eBay Example:
Online Ad Auctions Problems with Auctions 319 The Winner's Curse
320 Summary 320 Review Questions 321
18 Technology
Inputs and Outputs 322 Describing Technological Constraints 323
Examples of Technology 324 Fixed Proportions • Perfect Substitutes
• Cobb Douglas • Properties of Technology 326 The Marginal Product
328 The Technical Rate of Substitution 328 Diminishing Marginal
Product 329 Diminishing Technical Rate of Substitution 329 The
Long Run and the Short Run 330 Returns to Scale 330 Summary
332 Review Questions 333
19 Profit Maximization
Profits 334 The Organization of Firms 336 Profits and Stock Market
Value 336 The Boundaries of the Firm 338 Fixed and Variable Fac¬
tors 339 Short Run Profit Maximization 339 Comparative Statics
341 Profit Maximization in the Long Run 342 Inverse Factor Demand
Curves 343 Profit Maximization and Returns to Scale 344 Revealed
Profitability 345 Example: How Do Farmers React to Price Supports?
Cost Minimization 349 Summary 349 Review Questions 350 Ap¬
pendix 351
20 Cost Minimization
Cost Minimization 353 Example: Minimizing Costs for Specific Tech¬
nologies Revealed Cost Minimization 357 Returns to Scale and the
Cost Function 358 Long Run and Short Run Costs 360 Fixed and
Quasi Fixed Costs 362 Sunk Costs 362 Summary 363 Review
Questions 363 Appendix 364
CONTENTS XIII
21 Cost Curves
Average Costs 367 Marginal Costs 369 Marginal Costs and Variable
Costs 371 Example: Specific Cost Curves Example: Marginal Cost
Curves for Two Plants Long Run Costs 375 Discrete Levels of Plant
Size 377 Long Run Marginal Costs 379 Summary 380 Review
Questions 381 Appendix 381
22 Firm Supply
Market Environments 383 Pure Competition 384 The Supply Deci¬
sion of a Competitive Firm 386 An Exception 388 Another Exception
389 Example: Pricing Operating Systems The Inverse Supply Func¬
tion 391 Profits and Producer's Surplus 391 Example: The Supply
Curve for a Specific Cost Function The Long Run Supply Curve of a Firm
395 Long Run Constant Average Costs 397 Summary 398 Review
Questions 399 Appendix 399
23 Industry Supply
Short Run Industry Supply 401 Industry Equilibrium in the Short Run
402 Industry Equilibrium in the Long Run 403 The Long Run Supply
Curve 405 Example: Taxation in the Long Run and in the Short. Rim
The Meaning of Zero Profits 409 Fixed Factors and Economic Rent
410 Example: Taxi Licenses in New York City Economic Rent 412
Rental Rates and Prices 414 Example: Liquor Licenses The Politics
of Rent 415 Example: Farming the Government Energy Policy 417
Two Tiered Oil Pricing • Price Controls • The Entitlement Program
• Summary 421 Review Questions 422
XIV CONTENTS
24 Monopoly
Maximizing Profits 424 Linear Demand Curve and Monopoly 425
Markup Pricing 427 Example: The Impact of Taxes on a Monopo¬
list Inefficiency of Monopoly 429 Deadweight Loss of Monopoly 431
Example: The Optimal Life of a Patent Example: Patent Thickets Nat¬
ural Monopoly 435 What Causes Monopolies? 437 Example: Di¬
amonds Are Forever Example: Pooling in Auction Markets Example:
Price Fixing in Computer Memory Markets Summary 441 Review
Questions 442 Appendix 443
25 Monopoly Behavior
Price Discrimination 445 First Degree Price Discrimination 445 Ex¬
ample: First degree Price Discrimination in Practice Second Degree Price
Discrimination 448 Example: Price Discrimination in Airfares Ex¬
ample: Prescription Drug Prices Third Degree Price Discrimination 452
Example: Linear Demand Curves Example: Calculating Optimal Price
Discrimination Example: Price Discrimination in Academic Journals
Bundling 457 Example: Software Suites Two Part Tariffs 458 Mo¬
nopolistic Competition 459 A Location Model of Product Differentiation
463 Product Differentiation 465 More Vendors 466 Summary 467
Review Questions 467
26 Factor Markets
Monopoly in the Output Market 468 Monopsony 471 Example: The
Minimum Wage Upstream and Downstream Monopolies 475 Summary
477 Review Questions 478 Appendix 478
CONTENTS XV
27 Oligopoly
Choosing a Strategy 481 Quantity Leadership 481 The Follower's
Problem • The Leader's Problem • Price Leadership 487 Comparing
Price Leadership and Quantity Leadership 489 Simultaneous Quantity
Setting 489 An Example of Cournot Equilibrium 491 Adjustment to
Equilibrium 493 Many Firms in Cournot Equilibrium 493 Simulta¬
neous Price Setting 494 Collusion 495 Punishment Strategies 498
Example: Price Matching and Competition Example: Voluntary Export
Restraints Comparison of the Solutions 501 Summary 502 Review
Questions 503
28 Game Theory
The Payoff Matrix of a Game 504 Nash Equilibrium 506 Mixed
Strategies 507 Example: Rock Paper Scissors The Prisoner's Dilemma
509 Repeated Games 511 Enforcing a Cartel 512 Example: Tit
for Tat in Airline Pricing Sequential Games 514 A Game of Entry
Deterrence 516 Summary 518 Review Questions 519
29 Game Applications
Best Response Curves 520 Mixed Strategies 522 Games of Coordi¬
nation 524 Battle of the Sexes • Prisoner's Dilemma • Assurance
Games • Chicken • How to Coordinate • Games of Competition 528
Games of Coexistence 533 Games of Commitment 535 The Frog and
the Scorpion • The Kindly Kidnapper • When Strength Is Weakness
• Savings and Social Security • Hold Up • Bargaining 543 The
Ultimatum Game • Summary 546 Review Questions 547
XVI CONTENTS
30 Behavioral Economics
Framing Effects in Consumer Choice 549 The Disease Dilemma •
Anchoring Effects • Bracketing • Too Much Choice • Constructed
Preferences • Uncertainty 553 Law of Small Numbers • Asset In¬
tegration and Loss Aversion • Time 556 Discounting • Self control
• Example: Overconfidence Strategic Interaction and Social Norms 558
Ultimatum Game • Fairness • Assessment of Behavioral Economics
560 Summary 561 Review Questions 563
31 Exchange
The Edgeworth Box 565 Trade 567 Pareto Efficient Allocations
568 Market Trade 570 The Algebra of Equilibrium 572 Walras'
Law 574 Relative Prices 575 Example: An Algebraic Example of
Equilibrium The Existence of Equilibrium 577 Equilibrium and Effi¬
ciency 578 The Algebra of Efficiency 579 Example: Monopoly in
the Edgeworth Box Efficiency and Equilibrium 582 Implications of the
First Welfare Theorem 584 Implications of the Second Welfare Theorem
586 Summary 588 Review Questions 589 Appendix 589
32 Production
The Robinson Crusoe Economy 591 Crusoe, Inc. 593 The Firm 594
Robinson's Problem 595 Putting Them Together 595 Different Tech¬
nologies 597 Production and the First Welfare Theorem 599 Produc¬
tion and the Second Welfare Theorem 600 Production Possibilities 600
Comparative Advantage 602 Pareto Efficiency 604 Castaways, Inc.
606 Robinson and Friday as Consumers 608 Decentralized Resource
Allocation 609 Summary 610 Review Questions 610 Appen¬
dix 611
CONTENTS XVII
33 Welfare
Aggregation of Preferences 614 Social Welfare Functions 616 Welfare
Maximization 618 Individualistic Social Welfare Functions 620 Fair
Allocations 621 Envy and Equity 622 Summary 624 Review
Questions 624 Appendix 625
34 Externalities
Smokers and Nonsmokers 627 Quasilinear Preferences and the Coase
Theorem 630 Production Externalities 632 Example: Pollution
Vouchers Interpretation of the Conditions 637 Market Signals 640
Example: Bees and Almonds The Tragedy of the Commons 641 Ex¬
ample: Overfishing Example: New England Lobsters Automobile Pollu¬
tion 645 Summary 647 Review Questions 647
35 Information Technology
Systems Competition 650 The Problem of Complements 650 Re¬
lationships among Complementers • Lock In 654 A Model of Com¬
petition with Switching Costs • Example: Online Bill Payment Ex¬
ample: Number Portability on Cell Phones Network Externalities 658
Markets with Network Externalities 658 Market Dynamics 660 Ex¬
ample: Network Externalities in Computer Software Implications of Net¬
work Externalities 664 Example: The Yellow Pages Rights Manage¬
ment 665 Example: Video Rental Sharing Intellectual Property 667
Summary 669 Review Questions 669
36 Public Goods
When to Provide a Public Good? 671 Private Provision of the Public
Good 675 Free Riding 675 Different Levels of the Public Good 677
Quasilinear Preferences and Public Goods 679 Example: Pollution Re¬
visited The Free Rider Problem 681 Comparison to Private Goods 683
Voting 684 Example: Agenda Manipulation Demand Revelation 687
Example: An Example of the Clarke Tax Problems with the Clarke Tax
691 Summary 692 Review Questions 692 Appendix 693
XVIII CONTENTS
37 Asymmetric Information
The Market for Lemons 695 Quality Choice 696 Choosing the Qual¬
ity • Adverse Selection 698 Moral Hazard 700 Moral Hazard and
Adverse Selection 701 Signaling 702 Example: The Sheepskin Effect
Incentives 706 Example: Voting Rights in the Corporation Example:
Chinese Economic Reforms Asymmetric Information 711 Example:
Monitoring Costs Example: The Grameen Bank Summary 714 Re¬
view Questions 715
Mathematical Appendix
Functions Al Graphs A2 Properties of Functions A2 Inverse
Functions A3 Equations and Identities A3 Linear Functions A4
Changes and Rates of Change A4 Slopes and Intercepts A5 Absolute
Values and Logarithms A6 Derivatives A6 Second Derivatives A7
The Product Rule and the Chain Rule A8 Partial Derivatives A8
Optimization A9 Constrained Optimization A10
Answers A11
Index A31 |
any_adam_object | 1 |
any_adam_object_boolean | 1 |
author | Varian, Hal R. 1947- |
author_GND | (DE-588)122154584 |
author_facet | Varian, Hal R. 1947- |
author_role | aut |
author_sort | Varian, Hal R. 1947- |
author_variant | h r v hr hrv |
building | Verbundindex |
bvnumber | BV021562117 |
callnumber-first | H - Social Science |
callnumber-label | HB172 |
callnumber-raw | HB172 |
callnumber-search | HB172 |
callnumber-sort | HB 3172 |
callnumber-subject | HB - Economic Theory and Demography |
classification_rvk | CC 7750 CW 7500 QC 100 |
classification_tum | WIR 020f |
ctrlnum | (OCoLC)314577666 (DE-599)BVBBV021562117 |
discipline | Psychologie Philosophie Wirtschaftswissenschaften |
discipline_str_mv | Psychologie Philosophie Wirtschaftswissenschaften |
edition | 7. ed., internat. student ed. |
format | Book |
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id | DE-604.BV021562117 |
illustrated | Illustrated |
index_date | 2024-07-02T14:35:04Z |
indexdate | 2025-02-20T06:41:21Z |
institution | BVB |
isbn | 0393927024 0393928624 9780393928624 |
language | English |
oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-014778041 |
oclc_num | 314577666 |
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physical | XXIV, 715, 39 S. graph. Darst. |
publishDate | 2006 |
publishDateSearch | 2006 |
publishDateSort | 2006 |
publisher | Norton |
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spellingShingle | Varian, Hal R. 1947- Intermediate microeconomics a modern approach Microeconomics Vorlage (DE-588)4188682-3 gnd Mikroökonomie (DE-588)4039225-9 gnd |
subject_GND | (DE-588)4188682-3 (DE-588)4039225-9 (DE-588)4144384-6 (DE-588)4151278-9 (DE-588)4123623-3 |
title | Intermediate microeconomics a modern approach |
title_auth | Intermediate microeconomics a modern approach |
title_exact_search | Intermediate microeconomics a modern approach |
title_exact_search_txtP | Intermediate microeconomics a modern approach |
title_full | Intermediate microeconomics a modern approach Hal R. Varian |
title_fullStr | Intermediate microeconomics a modern approach Hal R. Varian |
title_full_unstemmed | Intermediate microeconomics a modern approach Hal R. Varian |
title_short | Intermediate microeconomics |
title_sort | intermediate microeconomics a modern approach |
title_sub | a modern approach |
topic | Microeconomics Vorlage (DE-588)4188682-3 gnd Mikroökonomie (DE-588)4039225-9 gnd |
topic_facet | Microeconomics Vorlage Mikroökonomie Beispielsammlung Einführung Lehrbuch |
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work_keys_str_mv | AT varianhalr intermediatemicroeconomicsamodernapproach |
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