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| 010 | ▼a 2019054875 | |
| 020 | ▼a 9781119554844 (paperback) | |
| 020 | ▼a 9781119600749 (adobe pdf) | |
| 020 | ▼a 9781119554936 (epub) | |
| 035 | ▼a (KERIS)REF000019175737 | |
| 040 | ▼a DLC ▼b eng ▼e rda ▼c DLC ▼d 211009 | |
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| 082 | 0 0 | ▼a 338.5 ▼2 23 |
| 084 | ▼a 338.5 ▼2 DDCK | |
| 090 | ▼a 338.5 ▼b B554m6 | |
| 100 | 1 | ▼a Besanko, David, ▼d 1955-, ▼e author ▼0 AUTH(211009)48436. |
| 245 | 1 0 | ▼a Microeconomics / ▼c David A. Besanko, Northwestern University, Kellogg School of Management, Ronald R. Braeutigam, Northwestern University, Department of Economics ; with contributions from Michael J. Gibbs, The University of Chicago, Booth School of Business. |
| 250 | ▼a 6th ed. | |
| 260 | ▼a Hoboken : ▼b Wiley, ▼c c2020. | |
| 264 | 1 | ▼a Hoboken : ▼b Wiley, ▼c 2020. |
| 300 | ▼a xxii, 772, [61] p. : ▼b col. ill. ; ▼c 26 cm. | |
| 336 | ▼a text ▼b txt ▼2 rdacontent | |
| 337 | ▼a unmediated ▼b n ▼2 rdamedia | |
| 338 | ▼a volume ▼b nc ▼2 rdacarrier | |
| 500 | ▼a Revised edition of the authors' Microeconomics, [2014] | |
| 500 | ▼a Includes index. | |
| 520 | ▼a "Appreciation for comparative statics analysis and will be better prepared to interpret events in real markets. Learning-By-Doing exercises, embedded in the text of each Chapter, guide the student through specific numerical problems. We use three to ten Learning-By-Doing exercises in each Chapter and have designed them to illustrate the core ideas of the Chapter. They are integrated with the graphical and verbal exposition, so that students can clearly see, through the use of numbers and tangible algebraic relationships, what the graphs and words are striving to teach. These exercises set the student up to do similar practice problems as well as more difficult analytical problems at the end of each Chapter. As noted above, we have added to the already complete end-of-Chapter problem sets to give students and instructors more opportunity to assess student understanding. Chapters have between 20 and 35 end-of-Chapter exercises. There is at least one exercise for each of the topics covered in the Chapter, and the topics covered by the exercises generally follow the order of topics in the Chapter. At the end of the book, there are fully worked-out solutions to selected exercises"-- ▼c Provided by publisher. | |
| 650 | 0 | ▼a Microeconomics. |
| 700 | 1 | ▼a Braeutigam, Ronald R. ▼q (Ronald Ray), ▼e author ▼0 AUTH(211009)131118. |
| 700 | 1 | ▼a Gibbs, Michael, ▼d 1962-, ▼e author ▼0 AUTH(211009)148563. |
| 945 | ▼a KLPA |
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| No. 2 | 소장처 중앙도서관/서고6층/ | 청구기호 338.5 B554m6 | 등록번호 111876965 (3회 대출) | 도서상태 대출가능 | 반납예정일 | 예약 | 서비스 |
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Microeconomics is a classroom-tested resource for learning the key concepts, essential tools, and applications of microeconomics. This leading textbook enables students to recognize and analyze significant data, patterns, and trends in real markets through its integrated, student-friendly approach to the subject — providing practice problems, hands-on exercises, illustrative examples, and engaging applications that ground theory firmly in the real world. Each chapter, opening with a set of clearly defined learning goals based on the Bloom Taxonomy, features numerous Learning-by-Doing (LBD) problems, mathematical and graphical data, and varied problem sets focused on current events.
Now in its sixth edition, the text offers extensive new and revised content throughout. All applications reflect current data and important new developments in the field of economics, including behavioral economics, randomized controlled trials (RCTs) in policy evaluation and design, and computational-based microeconomics. Updated chapter openers, designed to increase student interest, cover topics including the economic impacts of climate change, U.S. household income and spending, surge pricing by Uber and Lyft, the effect of immigration on wages, and advances in robotics, automation, artificial intelligence, and more.
"Appreciation for comparative statics analysis and will be better prepared to interpret events in real markets. Learning-By-Doing exercises, embedded in the text of each Chapter, guide the student through specific numerical problems. We use three to ten Learning-By-Doing exercises in each Chapter and have designed them to illustrate the core ideas of the Chapter. They are integrated with the graphical and verbal exposition, so that students can clearly see, through the use of numbers and tangible algebraic relationships, what the graphs and words are striving to teach. These exercises set the student up to do similar practice problems as well as more difficult analytical problems at the end of each Chapter. As noted above, we have added to the already complete end-of-Chapter problem sets to give students and instructors more opportunity to assess student understanding. Chapters have between 20 and 35 end-of-Chapter exercises. There is at least one exercise for each of the topics covered in the Chapter, and the topics covered by the exercises generally follow the order of topics in the Chapter. At the end of the book, there are fully worked-out solutions to selected exercises"--
"Appreciation for comparative statics analysis and will be better prepared to interpret events in real markets. Learning-By-Doing exercises, embedded in the text of each Chapter, guide the student through specific numerical problems. We use three to ten Learning-By-Doing exercises in each Chapter and have designed them to illustrate the core ideas of the Chapter. They are integrated with the graphical and verbal exposition, so that students can clearly see, through the use of numbers and tangible algebraic relationships, what the graphs and words are striving to teach. These exercises set the student up to do similar practice problems as well as more difficult analytical problems at the end of each Chapter. As noted above, we have added to the already complete end-of-Chapter problem sets to give students and instructors more opportunity to assess student understanding. Chapters have between 20 and 35 end-of-Chapter exercises. There is at least one exercise for each of the topics covered in the Chapter, and the topics covered by the exercises generally follow the order of topics in the Chapter. At the end of the book, there are fully worked-out solutions to selected exercises"--
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목차
Part 1 Introduction to Microeconomics Chapter 1 Analyzing Economic Problems 1 Microeconomics and Climate Change 1.1 Why Study Microeconomics? 4 1.2 Three Key Analytical Tools 5 Constrained Optimization 6 Equilibrium Analysis 12 Comparative Statics 14 1.3 Positive and Normative Analysis 18 Learning-By-Doing-Exercises 1.1 Constrained Optimization: The Farmer''s Fence 7 1.2 Constrained Optimization: Consumer Choice 8 1.3 Comparative Statics with Market Equilibrium in the U.S. Market for Corn 16 1.4 Comparative Statics with Constrained Optimization 18 Chapter 2 Demand and Supply Analysis 26 What Gives with the Price of Corn? 2.1 Demand, Supply, and Market Equilibrium 30 Demand Curves 30 Supply Curves 32 Market Equilibrium 34 Shifts in Supply and Demand 35 2.2 Price Elasticity of Demand 44 Elasticities Along Specific Demand Curves 46 Price Elasticity of Demand and Total Revenue 49 Determinants of the Price Elasticity of Demand 49 Market-Level Versus Brand-Level Price Elasticities of Demand 51 2.3 Other Elasticities 53 Income Elasticity of Demand 53 Cross-Price Elasticity of Demand 54 Price Elasticity of Supply 56 2.4 Elasticity in the Long Run Versus the Short Run 56 Greater Elasticity in the Long Run than in the Short Run 56 Greater Elasticity In the Short Run than in the Long Run 57 2.5 Back-of-the-Envelope Calculations 59 Fitting Linear Demand Curves Using Quantity, Price, and Elasticity Information 60 Identifying Supply and Demand Curves on the Back of an Envelope 61 Identifying the Price Elasticity of Demand from Shifts in Supply 63 Appendix Price Elasticity of Demand along a Constant Elasticity Demand Curve 74 Learning-By-Doing-Exercises 2.1 Sketching a Demand Curve 31 2.2 Sketching a Supply Curve 33 2.3 Calculating Equilibrium Price and Quantity 34 2.4 Comparative Statics on the Market Equilibrium 37 2.5 Price Elasticity of Demand 47 2.6 Elasticities along Special Demand Curves 49 Part 2 Consumer Theory Chapter 3 Consumer Preferences and the Concept of Utility 75 Why Do You Like What You Like? 3.1 Representations of Preferences 77 Assumptions About Consumer Preferences 77 Ordinal and Cardinal Ranking 80 3.2 Utility Functions 80 Preferences with a Single Good: The Concept of Marginal Utility 80 Preferences with Multiple Goods: Marginal Utility, Indifference Curves, and the Marginal Rate of Substitution 84 3.3 Special Preferences 95 Perfect Substitutes 95 Perfect Complements 96 The Cobb-Douglas Utility Function 97 Quasilinear Utility Functions 98 3.4 Behavioral Aspects of Choice 100 Learning-By-Doing-Exercises 3.1 Marginal Utility 86 3.2 Marginal Utility That is Not Diminishing 86 3.3 Indifference Curves with Diminishing MRSx,Y 93 3.4 Indifference Curves with Increasing MRSx,Y 94 Chapter 4 Consumer Choice 109 How Much of What You Like Should You Buy? 4.1 The Budget Constraint 111 How Does a Change in Income Affect the Budget Line? 113 How Does a Change in Price Affect the Budget Line? 113 4.2 Optimal Choice 116 Using the Tangency Condition to Understand When a Basket is Not Optimal 120 Finding an Optimal Consumption Basket 121 Two Ways of Thinking About Optimality 122 Corner Points 124 4.3 Consumer Choice with Composite Goods 127 Application: Coupons and Cash Subsidies 127 Application: Joining a Club 131 Application: Borrowing and Lending 132 Application: Quantity Discounts 137 4.4 Revealed Preference 138 Are Observed Choices Consistent with Utility Maximization? 139 4.5 Maximizing Utility Using Lagrange Multipliers 144 Appendix The Time Value of Money 157 Learning-By-Doing-Exercises 4.1 Good News/Bad News and the Budget Line 116 4.2 Finding an Interior Optimum 121 4.3 Finding a Corner Point Solution 125 4.4 Corner Point Solution with Perfect Substitutes 126 4.5 Consumer Choice That Fails to Maximize Utility 140 4.6 Other Uses of Revealed Preference 142 4.7 Finding an Interior Optimum Using the Method of Lagrange 148 4.8 Finding a Corner Point Solution Using the Method of Lagrange 149 Chapter 5 The Theory of Demand 163 Why Understanding the Demand for Cigarettes is Important for Public Policy 5.1 Optimal Choice and Demand 165 The Effects of a Change in Price 165 The Effects of a Change in Income 168 The Effects of a Change in Price or Income: An Algebraic Approach 173 5.2 Change in the Price of a Good: Substitution Effect and Income Effect 175 The Substitution Effect 176 The Income Effect 176 Income and Substitution Effects When Goods Are Not Normal 178 5.3 Change in the Price of a Good: The Concept of Consumer Surplus 186 Understanding Consumer Surplus from the Demand Curve 186 Understanding Consumer Surplus from the Optimal Choice Diagram: Compensating Variation and Equivalent Variation 188 5.4 Market Demand 195 Market Demand with Network Externalities 197 5.5 The Choice of Labor and Leisure 200 As Wages Rise, Leisure First Decreases, then Increases 200 The Backward-Bending Supply of Labor 202 5.6 Consumer Price Indices 206 Learning-By-Doing-Exercises 5.1 A Normal Good Has a Positive Income Elasticity of Demand 172 5.2 Finding a Demand Curve (No Corner Points) 173 5.3 Finding a Demand Curve (with a Corner Point Solution) 174 5.4 Finding Income and Substitution Effects Algebraically 181 5.5 Income and Substitution Effects with a Price Increase 183 5.6 Income and Substitution Effects with a Quasilinear Utility Function 184 5.7 Consumer Surplus: Looking at the Demand Curve 187 5.8 Compensating and Equivalent Variations with No Income Effect 191 5.9 Compensating and Equivalent Variations with an Income Effect 193 5.10 The Demand for Leisure and the Supply of Labor 204 Part 3 Production and Cost Theory Chapter 6 Inputs and Production Functions 216 Can They Do It Better and Cheaper? 6.1 Introduction to Inputs and Production Functions 218 6.2 Production Functions with a Single Input 220 Total Product Functions 221 Marginal and Average Product 222 Relationship Between Marginal and Average Product 226 6.3 Production Functions with More Than One Input 227 Total Product and Marginal Product with Two Inputs 227 Isoquants 229 Economic and Uneconomic Regions of Production 233 Marginal Rate of Technical Substitution 233 6.4 Substitutability Among Inputs 236 Describing a Firm''s Input Substitution Opportunities Graphically 237 Elasticity of Substitution 239 Special Production Functions 242 6.5 Returns to Scale 248 Definitions 248 Returns to Scale Versus Diminishing Marginal Returns 251 6.6 Technological Progress 251 Appendix The Elasticity of Substitution for a Cobb-Douglas Production Function 261 Learning-By-Doing-Exercises 6.1 Deriving the Equation of an Isoquant 232 6.2 Relating the Marginal Rate of Technical Substitution to Marginal Products 236 6.3 Calculating the Elasticity of Substitution from a Production Function 240 6.4 Returns to Scale for a Cobb-Douglas Production Function 250 6.5 Technological Progress 253 Chapter 7 Costs and Cost Minimization 263 What''s Behind the Self-Service Revolution? 7.1 Cost Concepts for Decision Making 265 Opportunity Cost 266 Economic versus Accounting Costs 269 Sunk (Unavoidable) versus Nonsunk (Avoidable) Costs 269 7.2 The Cost-Minimization Problem 272 Long Run versus Short Run 272 The Long-Run Cost-Minimization Problem 272 Isocost Lines 273 Graphical Characterization of the Solution to the Long-Run Cost-Minimization Problem 274 Corner Point Solutions 277 7.3 Comparative Statics Analysis of the Cost-Minimization Problem 278 Comparative Statics Analysis of Changes in Input Prices 278 Comparative Statics Analysis of Changes in Output 282 Summarizing the Comparative Statics Analysis: The Input Demand Curves 283 The Price Elasticity of Demand for Inputs 285 7.4 Short-Run Cost Minimization 289 Characterizing Costs in the Short Run 289 Cost Minimization in the Short Run 291 Comparative Statics: Short-Run Input Demand versus Long-Run Input Demand 292 More Than One Variable Input in the Short Run 293 7.5 Minimizing Long-Run Costs Using Lagrange Multipliers 295 Appendix Advanced Topics in Cost Minimization 307 Learning-By-Doing-Exercises 7.1 Using the Cost Concepts for a College Campus Business 270 7.2 Finding an Interior Cost-Minimization Optimum 276 7.3 Finding a Corner Point Solution with Perfect Substitutes 277 7.4 Deriving the Input Demand Curves from a Production Function 285 7.5 Short-Run Cost Minimization with One Fixed Input 293 7.6 Short-Run Cost Minimization with Two Variable Inputs 294 7.7 Finding an Interior Optimum Using the Method of Lagrange 299 7.8 Finding a Corner Point Solution Using the Method of Lagrange 300 Chapter 8 Cost Curves 310 How Can Hisense Get a Handle on Costs? 8.1 Long-Run Cost Curves 312 Long-Run Total Cost Curve 312 How Does the Long-Run Total Cost Curve Shift When Input Prices Change? 314 Long-Run Average and Marginal Cost Curves 316 8.2 Short-Run Cost Curves 328 Short-Run Total Cost Curve 328 Relationship Between the Long-Run and the Short-Run Total Cost Curves 328 Short-Run Average and Marginal Cost Curves 331 Relationships Between the Long-Run and the Short-Run Average and Marginal Cost Curves 332 When Are Long-Run and Short-Run Average and Marginal Costs Equal, and When Are They Not? 333 8.3 Special Topics in Cost 336 Economies of Scope 336 Economies of Experience: The Experience Curve 340 8.4 Estimating Cost Functions 343 Constant Elasticity Cost Function 343 Translog Cost Function 343 Appendix Shephard''s Lemma and Duality 350 Learning-By-Doing-Exercises 8.1 Finding the Long-Run Total Cost Curve from a Production Function 314 8.2 Deriving Long-Run Average and Marginal Cost Curves from a Long-Run Total Cost Curve 319 8.3 Deriving a Short-Run Total Cost Curve 329 8.4 The Relationship between Short-Run and Long-Run Average Cost Curves 334 Part 4 Perfect Competition Chapter 9 Perfectly Competitive Markets 354 A Rose is a Rose is a Rose 9.1 What is Perfect Competition? 357 9.2 Profit Maximization by a Price-Taking Firm 359 Economic Profit versus Accounting Profit 359 The Profit-Maximizing Output Choice for a Price-Taking Firm 361 9.3 How the Market Price is Determined: Short-Run Equilibrium 364 The Price-Taking Firm''s Short-Run Cost Structure 364 Short-Run Supply Curve for a Price-Taking Firm When All Fixed Costs Are Sunk 366 Short-Run Supply Curve for a Price-Taking Firm When Some Fixed Costs Are Sunk and Some Are Nonsunk 368 Short-Run Market Supply Curve 372 Short-Run Perfectly Competitive Equilibrium 375 Comparative Statics Analysis of the Short-Run Equilibrium 376 9.4 How the Market Price is Determined: Long-Run Equilibrium 382 Long-Run Output and Plant-Size Adjustments by Established Firms 382 The Firm''s Long-Run Supply Curve 383 Free Entry and Long-Run Perfectly Competitive Equilibrium 384 Long-Run Market Supply Curve 386 Constant-Cost, Increasing-Cost, and Decreasing-Cost Industries 387 What Does the Theory of Perfect Competition Teach Us? 395 9.5 Economic Rent and Producer Surplus 396 Economic Rent 396 Producer Surplus 399 Economic Profit, Producer Surplus, Economic Rent 405 Appendix Profit Maximization Implies Cost Minimization 413 Learning-By-Doing-Exercises 9.1 Deriving the Short-Run Supply Curve for a Price-Taking Firm 368 9.2 Deriving the Short-Run Supply Curve for a Price-Taking Firm with Some Nonsunk Fixed Costs 370 9.3 Short-Run Market Equilibrium 376 9.4 Calculating a Long-Run Equilibrium 385 9.5 Calculating Producer Surplus 404 Chapter 10 Competitive Markets: Applications 415 Is Support a Good Thing? 10.1 The Invisible Hand, Excise Taxes, and Subsidies 417 The Invisible Hand 418 Excise Taxes 419 Incidence of a Tax 423 Subsidies 427 10.2 Price Ceilings and Floors 429 Price Ceilings 430 Price Floors 438 10.3 Production Quotas 443 10.4 Price Supports in the Agricultural Sector 447 Acreage Limitation Programs 447 Government Purchase Programs 449 10.5 Import Quotas and Tariffs 451 Quotas 451 Tariffs 455 Learning-By-Doing-Exercises 10.1 Impact of an Excise Tax 422 10.2 Impact of a Subsidy 429 10.3 Impact of a Price Ceiling 436 10.4 Impact of a Price Floor 441 10.5 Comparing the Impact of an Excise Tax, a Price Floor, and a Production Quota 446 10.6 Effects of an Import Tariff 458 Part 5 Market Power Chapter 11 Monopoly and Monopsony 468 Why Do Firms Play Monopoly? 11.1 Profit Maximization by a Monopolist 470 The Profit-Maximization Condition 470 A Closer Look at Marginal Revenue: Marginal Units and Inframarginal Units 474 Average Revenue and Marginal Revenue 475 The Profit-Maximization Condition Shown Graphically 477 A Monopolist Does Not Have A Supply Curve 479 11.2 The Importance of Price Elasticity of Demand 480 Price Elasticity of Demand and the Profit-Maximizing Price 480 Marginal Revenue and Price Elasticity of Demand 481 Marginal Cost and Price Elasticity of Demand: The Inverse Elasticity Pricing Rule 483 The Monopolist Always Produces on the Elastic Region of the Market Demand Curve 484 The IEPR Applies not Only to Monopolists 486 Quantifying Market Power: The Lerner Index 487 11.3 Comparative Statics for Monopolists 488 Shifts in Market Demand 488 Shifts in Marginal Cost 491 11.4 Monopoly with Multiple Plants and Markets 493 Output Choice with two Plants 494 Output Choice with two Markets 495 Profit Maximization by a Cartel 496 11.5 The Welfare Economics of Monopoly 499 The Monopoly Equilibrium Differs from the Perfectly Competitive Equilibrium 499 Monopoly Deadweight Loss 501 Rent-Seeking Activities 501 11.6 Why Do Monopoly Markets Exist? 501 Natural Monopoly 502 Barriers to Entry 503 11.7 Monopsony 505 The Monopsonist''s Profit-Maximization Condition 505 An Inverse Elasticity Pricing Rule for Monopsony 507 Monopsony Deadweight Loss 508 Learning-By-Doing-Exercises 11.1 Marginal and Average Revenue for a Linear Demand Curve 477 11.2 Applying the Monopolist''s Profit-Maximization Condition 479 11.3 Computing the Optimal Monopoly Price for a Constant Elasticity Demand Curve 483 11.4 Computing the Optimal Monopoly Price for a Linear Demand Curve 484 11.5 Computing the Optimal Price Using the Monopoly Midpoint Rule 490 11.6 Determining the Optimal Output, Price, and Division of Production for a Multiplant Monopolist 495 11.7 Determining the Optimal Output and Price for a Monopolist Serving Two Markets 496 11.8 Applying the Monopsonist''s Profit-Maximization Condition 507 11.9 Applying the Inverse Elasticity Rule for a Monopsonist 508 Chapter 12 Capturing Surplus 515 Why Did Your Carpet or Your Airline Ticket Cost So Much Less Than Mine? 12.1 Capturing Surplus 517 12.2 First-Degree Price Discrimination: Making the Most from Each Consumer 520 12.3 Second-Degree Price Discrimination: Quantity Discounts 525 Block Pricing 525 Subscription and Usage Charges 528 12.4 Third-Degree Price Discrimination: Different Prices for Different Market Segments 531 Two Different Segments, Two Different Prices 531 Screening 534 Third-Degree Price Discrimination with Capacity Constraints 536 Implementing the Scheme of Price Discrimination: Building "Fences" 538 12.5 Tying (Tie-In Sales) 543 Bundling 544 Mixed Bundling 546 12.6 Advertising 548 Learning-By-Doing-Exercises 12.1 Capturing Surplus: Uniform Pricing versus First-Degree Price Discrimination 522 12.2 Where is the Marginal Revenue Curve with First-Degree Price Discrimination? 523 12.3 Increasing Profits with a Block Tariff 527 12.4 Third-Degree Price Discrimination in Railroad Transport 533 12.5 Third-Degree Price Discrimination for Airline Tickets 535 12.6 Price Discrimination Subject to Capacity Constraints 537 12.7 Markup and Advertising-to-Sales Ratio 551 Part 6 Imperfect Competition and Strategic Behavior Chapter 13 Market Structure and Competition 558 Is Competition Always the Same? If Not, Why Not? 13.1 Describing and Measuring Market Structure 560 13.2 Oligopoly with Homogeneous Products 563 The Cournot Model of Oligopoly 563 Cournot Equilibrium and the IEPR 571 The Bertrand Model of Oligopoly 571 Why are the Cournot and Bertrand Equilibria Different? 573 The Stackelberg Model of Oligopoly 574 13.3 Dominant Firm Markets 576 13.4 Oligopoly with Horizontally Differentiated Products 579 What is Product Differentiation? 579 Bertrand Price Competition with Horizontally Differentiated Products 582 13.5 Monopolistic Competition 588 Short-Run and Long-Run Equilibrium in Monopolistically Competitive Markets 588 Price Elasticity of Demand, Margins, and Number of Firms in the Market 590 Do Prices Fall When More Firms Enter? 590 Appendix The Cournot Equilibrium and the Inverse Elasticity Pricing Rule 600 Learning-By-Doing-Exercises 13.1 Computing a Cournot Equilibrium 566 13.2 Computing the Cournot Equilibrium for Two or More Firms with Linear Demand 570 13.3 Computing the Equilibrium in the Dominant Firm Model 578 13.4 Computing a Bertrand Equilibrium with Horizontally Differentiated Products 586 Chapter 14 Game Theory and Strategic Behavior 601 What''s in a Game? 14.1 The Concept of Nash Equilibrium 603 A Simple Game 603 The Nash Equilibrium 604 The Prisoners'' Dilemma 604 Dominant and Dominated Strategies 605 Games with more Than One Nash Equilibrium 609 Mixed Strategies 615 Summary: How to Find All the Nash Equilibria in a Simultaneous-Move Game with Two Players 616 14.2 The Repeated Prisoners'' Dilemma 617 14.3 Sequential-Move Games and Strategic Moves 622 Analyzing Sequential-Move Games 623 The Strategic Value of Limiting One''s Options 624 Learning-By-Doing-Exercises 14.1 Finding the Nash Equilibrium: Coke versus Pepsi 608 14.2 Finding All of the Nash Equilibria in a Game 612 14.3 An Entry Game 625 Chapter 15 Risk and Information 637 Risky Business? 15.1 Describing Risky Outcomes 639 Lotteries and Probabilities 639 Expected Value 641 Variance 641 15.2 Evaluating Risky Outcomes 644 Utility Functions and Risk Preferences 644 Risk-Neutral and Risk-Loving Preferences 647 15.3 Bearing and Eliminating Risk 650 Risk Premium 650 When Would a Risk-Averse Person Choose to Eliminate Risk? the Demand for Insurance 653 Asymmetric Information: Moral Hazard and Adverse Selection 656 Prospect Theory and Loss Aversion: An Alternative to Expected Utility Theory 662 15.4 Analyzing Risky Decisions 665 Decision Tree Basics 665 Decision Trees with a Sequence of Decisions 668 The Value of Information 670 15.5 Auctions 672 Types of Auctions and Bidding Environments 672 Auctions When Bidders Have Private Values 673 Auctions When Bidders Have Common Values: The Winner''s Curse 677 Learning-By-Doing-Exercises 15.1 Computing the Expected Utility for Two Lotteries for a Risk-Averse Decision Maker 647 15.2 Computing the Expected Utility for Two Lotteries: Risk-Neutral and Risk-Loving Decision Makers 649 15.3 Computing the Risk Premium from a Utility Function 653 15.4 The Willingness to Pay for Insurance 654 15.5 Verifying the Nash Equilibrium in a First-Price Sealed-Bid Auction with Private Values 675 Chapter 16 General Equilibrium Theory 686 How Do Gasoline Taxes Affect the Economy? 16.1 General Equilibrium Analysis: Two Markets 688 16.2 General Equilibrium Analysis: Many Markets 692 The Origins of Supply and Demand in a Simple Economy 692 The General Equilibrium in Our Simple Economy 698 Walras'' Law 702 16.3 General Equilibrium Analysis: Comparative Statics 703 16.4 The Efficiency of Competitive Markets 707 What is Economic Efficiency? 707 Exchange Efficiency 708 Input Efficiency 714 Substitution Efficiency 716 Does the General Competitive Equilibrium Satisfy Substitution Efficiency? 717 Pulling the Analysis Together: The Fundamental Theorems of Welfare Economics 719 16.5 Gains From Free Trade 720 Free Trade is Mutually Beneficial 720 Comparative Advantage 724 Appendix Deriving the Demand and Supply Curves for the General Equilibrium in Figure 16.10 and Learning-By-Doing Exercises 16.2 730 Learning-By-Doing-Exercises 16.1 Finding the Prices at a General Equilibrium with Two Markets 692 16.2 Finding the Conditions for a General Equilibrium with Four Markets 701 16.3 Checking the Conditions for Exchange Efficiency 712 Chapter 17 Externalities and Public Goods 736 When Does the Invisible Hand Fail? 17.1 Introduction 738 17.2 Externalities 740 Negative Externalities and Economic Efficiency 742 Positive Externalities and Economic Efficiency 756 Property Rights and the Coase Theorem 760 17.3 Public Goods 762 Efficient Provision of a Public Good 763 The Free-Rider Problem 766 Learning-By-Doing-Exercises 17.1 The Efficient Amount of Pollution 745 17.2 Emissions Fee 748 17.3 The Coase Theorem 761 17.4 Optimal Provision of a Public Good 765 Mathematical Appendix A-1 Solutions to Selected Problems S-1 Glossary G-1 Index I-1