EBOOK: Microeconomics and Behaviour

Name: EBOOK: Microeconomics and Behaviour
Brand: McGraw-Hill Education
Price: 49.55 EUR
Availability: OnlineOnly

Robert Frank Edward Cartwright(Author)

McGraw-Hill Education (Publisher)

1st Edition

Published on 16. May 2013

702 pages

E-Book

PDF with Adobe-DRM

System requirements

978-0-07-715759-3 (ISBN)

€49.55incl. 7% vat

System requirements

for PDF with Adobe-DRM

E-Book Single Licence

Available for download

New edition available

Description

More details

Other editions

Content

Intro
MICROECONOMICS AND BEHAVIOUR
DETAILED TABLE OF CONTENTS
PART 1 Introduction
Chapter 1 Thinking Like an Economist
The Cost-Benefit Approach to Decisions
Example 1.1: Should I turn down my stereo?
The Role of Economic Theory
Common Pitfalls in Decision Making
Example 1.2: Should I go skiing today or work as a research assistant?
Example 1.3: Should I go skiing today or wash dishes?
Example 1.4: Should I work first or go to university first?
Example 1.5: Should I drive to Berlin or take the train?
Example 1.6: The pizza experiment
Example 1.7a: Should you drive to the superstore to save ?10 on a ?20 clock radio?
Example 1.7b: Should you drive to the superstore to save ?10 on a ?1000 television set?
Example 1.8: Should Tom launch another boat?
Example 1.9: How many boats should Tom launch?
Using Marginal Benefit and Marginal Cost Graphically
Example 1.10: How much should Susan talk to Hal each month?
The Invisible Hand
Example 1.11: Should I burn my leaves or haul them into the woods?
Would Parents Want Their Daughter or Son to Marry Homo Economicus?
The Economic Naturalist
ECONOMIC NATURALIST 1.1: Why is airline food so bad?
ECONOMIC NATURALIST 1.2: Why do manual transmissions have five forward speeds, automatics only four?
Positive Questions and Normative Questions
Microeconomics and Macroeconomics
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Chapter 2 Supply and Demand
Chapter Preview
Supply and Demand Curves
Equilibrium Quantity and Price
Adjustment to Equilibrium
ECONOMIC NATURALIST 2.1: Why do people not haggle in supermarkets?
Some Welfare Properties of Equilibrium
Free Markets and the Poor
Example 2.1: Denied boarding compensation
Example 2.2: Rent controls
Price Supports
The Rationing and Allocative Functions of Prices
Determinants of Supply and Demand
Predicting and Explaining Changes in Price and Quantity
ECONOMIC NATURALIST 2.2: Why do the prices of some goods, like apples, go down during the months of heaviest consumption while others, like beachfront cottages, go up?
Example 2.3: How does a price support programme in the soybean market affect the equilibrium price and quantity of beef?
The Algebra of Supply and Demand
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Appendix 2: How Do Taxes Affect Equilibrium Prices and Quantities?
PART 2 The Theory of Consumer Behaviour
Chapter 3 Rational Consumer Choice
Chapter Preview
The Opportunity Set or Budget Constraint
Example 3.1: Quantity discount gives rise to a kinked budget constraint: graphing the budget constraint for a consumer's electric power
Example 3.2: Budget constraints following theft of diesel or loss of cash: should Gowdy buy more diesel?
Consumer Preferences
The Best Affordable Bundle
ECONOMIC NATURALIST 3.1: Why do people not consume most goods?
Example 3.3: Equilibrium with perfect substitutes: Jolt cola versus Coca-Cola
An Application of the Rational Choice Model
Example 3.4: Is it better to give poor people cash or rent support?
ECONOMIC NATURALIST 3.2: Why do people often give gifts in kind instead of cash?
Theory of Choice and Household Production
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Appendix 3: The Utility Function Approach to the Consumer Budgeting Problem
Chapter 4 Individual and Market Demand
Chapter Preview
The Effects of Changes in Price
The Effects of Changes in Income
The Income and Substitution Effects of a Price Change
Example 4.1: Income and substitution effects for perfect complements: skis and bindings
Example 4.2: Income and substitution effects for perfect substitutes: tea and coffee
Consumer Responsiveness to Changes in Price
Example 4.3: Deriving individual demand curves for perfect complements: car washes and petrol
Market Demand: Aggregating Individual Demand Curves
Example 4.4: The market demand curve: lamb chops in a Welsh town
Example 4.5: The market demand curve: ten consumers
Price Elasticity of Demand
Example 4.6: Price elasticity of demand: should the bus system raise or lower bus fares?
The Dependence of Market Demand on Income
Example 4.7: How does income affect the market demand curve for food?
ECONOMIC NATURALIST 4.1: Why have pubs become good at cooking food?
Application: Forecasting Economic Trends
Cross-Price Elasticities of Demand
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Appendix 4: Additional Topics in Demand Theory
Chapter 5 Applications of Rational Choice and Demand Theories
Chapter Preview
Application: Financing of Private Schools
The Income-Compensated Demand Curve
Consumer Surplus
Example 5.1: What is the loss in consumer surplus from an oil price increase?
ECONOMIC NATURALIST 5.1: Why do many tennis clubs have an annual membership charge in addition to their hourly court fees?
ECONOMIC NATURALIST 5.2: Why do some amusement parks charge only a fixed admission fee?
Overall Welfare Comparisons
Example 5.2: Price changes: was Jones better off this year or last year?
Application: The Welfare Effects of Changes in Housing Prices
Application: A Bias in the Consumer Price Index
Using Price Elasticity of Demand
Application: London Underground Fare Increases
Application: The Price Elasticity of Demand for Alcohol
The Intertemporal Choice Method
Application: Monetary Policy
Example 5.3: Will an increase in the interest rate cause you to save more?
Application: The Permanent Income and Life-Cycle Hypotheses
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Chapter 6 Choice under Uncertainty and the Economics of Information
Chapter Preview
Choice under Uncertainty
Example 6.1: Maximizing expected utility: Smith and gambling
Example 6.2: Will you always accept a favourable bet?
Example 6.3: The Lemons principle: in a certain country, what fraction of personal computers is defective?
Example 6.4: Should Sarah become a teacher or an actress? What is the most she would pay for Smith's evaluation?
Example 6.5: Should Smith sue the manufacturer?
Expected Utility and the Rational Choice Model
Insuring against Bad Outcomes
ECONOMIC NATURALIST 6.1: Why is it more difficult to get flood protection than fire protection?
Application: Always Self-Insure against Small Losses
The Economics of Information
Adverse Selection
ECONOMIC NATURALIST 6.2: Why do 'almost new' used cars sell for so much less than brand new ones?
ECONOMIC NATURALIST 6.3: Why should men pay more than women for car insurance?
Moral Hazard
Signalling
ECONOMIC NATURALIST 6.4: Why is coyness often an attractive attribute?
ECONOMIC NATURALIST 6.5: Why do residents of small towns spend less on their professional wardrobes than their counterparts in big cities?
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Appendix 6: Search Theory and the Winner's Curse
Chapter 7 Explaining Tastes: The Importance of Altruism and Other Non-Egoistic Behaviour
Chapter Preview
Applications of the Present-Aim Standard
Application: Voting in Elections
Application: Giving Money to Friends (or Strangers)
Example 7.1: A utility-maximizing altruist: should Smith give some of his wealth to Jones?
Application: Concerns about Fairness
Example 7.2: Will Hatfield and McCoy work together?
ECONOMIC NATURALIST 7.1: Why are tickets for football matches so cheap?
Evolution and Preferences
The Commitment Problem
Illustration: The Cheating Problem
A Simple Thought Experiment
Tastes Not Only Can Differ, They Must Differ
The Importance of Tastes
ECONOMIC NATURALIST 7.2: Why do so many people donate to charity?
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Chapter 8 Cognitive Limitations and Consumer Behaviour
Chapter Preview
Bounded Rationality
The Difficulty of Actually Deciding
ECONOMIC NATURALIST 8.1: Why do real estate agents show two houses that are nearly identical, even though one is cheaper and in better condition than the other?
The Asymmetric Value Function
ECONOMIC NATURALIST 8.2: Why does it pay to be careful with special offers?
Sunk Costs and Out-of-Pocket Expenses
Choice under Uncertainty
Judgemental Bias and Heuristics
ECONOMIC NATURALIST 8.3: Why does it not pay to work from home?
Intertemporal Choice
Summary
Questions for Review
Problems
Answer to In-Chapter Exercise
PART 3 The Theory of the Firm and Market Structure
Chapter 9 Production
Chapter Preview
The Input-Output Relationship, or Production Function
Production in the Short Run
ECONOMIC NATURALIST 9.1: Why can't all the world's people be fed from the amount of grain grown in a single flowerpot?
Example 9.1: Maximizing total output (I): should the allocation of boats of a fishing fleet be altered?
Example 9.2: Maximizing total output (II): how should the allocation of the boats of a fishing fleet be altered?
Example 9.3: What is the optimal amount of time to spend on each exam question?
Production in the Long Run
Returns to Scale
ECONOMIC NATURALIST 9.2: Why do builders use prefabricated frames for roofs but not for walls?
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Appendix 9: Mathematical Extensions of Production Theory
Chapter 10 Costs
Chapter Preview
Costs in the Short Run
Example 10.1: Graphing the total, variable and fixed cost curves 313
Example 10.2: Graphing the average fixed, average variable, average total and marginal costs
Example 10.3: Graphing the average total cost, average variable cost, average fixed cost and marginal cost curves
Allocating Production between Two Processes
Example 10.4: What is the least costly way to produce a total of 32 units of output?
The Relationship between MP, AP, MC and AVC
Costs in the Long Run
ECONOMIC NATURALIST 10.1: Why is gravel made by hand in Nepal but by machine in Europe?
ECONOMIC NATURALIST 10.2: Why do unions support minimum wage laws so strongly?
ECONOMIC NATURALIST 10.3: Why would a bathroom equipment manager bake the image of a housefly onto the centre of its ceramic urinals?
Long-Run Costs and the Structure of Industry
The Relationship between Long-Run and Short-Run Cost Curves
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Appendix 10: Mathematical Extensions of the Theory of Costs
Chapter 11 Perfect Competition
Chapter Preview
The Goal of Profit Maximization
Example 11.1: Should the owner of Margate's miniature golf course move the operation to London?
The Four Conditions for Perfect Competition
The Short-Run Condition for Profit Maximization
The Short-Run Competitive Industry Supply
Example 11.2: What is the industry supply curve for an industry with 200 firms?
Short-Run Competitive Equilibrium
The Efficiency of Short-Run Competitive Equilibrium
Producer Surplus
Example 11.3: Should the legislature ban fireworks?
Adjustments in the Long Run
The Invisible Hand
ECONOMIC NATURALIST 11.1: Why does an airline ticket from London to Frankfurt cost only ?10?
Application: The Cost of Extraordinary Inputs
The Long-Run Competitive Industry Supply Curve
The Elasticity of Supply
Applying the Competitive Model
ECONOMIC NATURALIST 11.2: Is there not a better way to support family farms?
ECONOMIC NATURALIST 11.3: Why did 18-wheel cargo trucks suddenly begin using airfoils in the mid-1970s?
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Chapter 12 Monopoly
Chapter Preview
Defining Monopoly
Five Sources of Monopoly
ECONOMIC NATURALIST 12.1: What is a just reward for designing the iPhone or finding a treatment for cancer?
The Profit-Maximizing Monopolist
Example 12.1: Finding a marginal revenue curve for a given demand curve
Example 12.2: What is a monopolist's profit-maximizing price, and how much economic profit is earned?
A Monopolist Has No Supply Curve
Adjustments in the Long Run
Price Discrimination
Example 12.3: Finding and graphing the monopolist's quantity and price in the home market
ECONOMIC NATURALIST 12.2: Why do some doctors and lawyers offer discounts to people with low incomes?
ECONOMIC NATURALIST 12.3: Why do cinema owners offer student discounts on admission tickets but not on popcorn?
Example 12.4: Finding and graphing the optimal fees for a student and a professor
Example 12.5: Distinguishing between rich and poor customers
The Efficiency Loss from Monopoly
Public Policy toward Natural Monopoly
ECONOMIC NATURALIST 12.4: Why are British railways so bad compared to European railways?
ECONOMIC NATURALIST 12.5: Is the EU powerless against Microsoft?
Example 12.6: Will the monopolist introduce a new light bulb that lasts 10,000 hours?
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Chapter 13 Imperfect Competition: A Game-Theoretic Approach
Chapter Preview
Monopolistic Competition
A Spatial Interpretation of Monopolistic Competition
ECONOMIC NATURALIST 13.1: Why are there fewer grocery stores in most cities now than there were in 1930? And why do residential neighbourhoods in Paris have more grocery stores than residential neighbourhoods in Los Angeles?
Historical Note: Hotelling's Hot Dog Vendors
Some Specific Oligopoly Models
Example 13.1: Deriving the reaction functions for Cournot duopolists
Example 13.2: Finding the equilibrium price and quantity for Bertrand duopolists
ECONOMIC NATURALIST 13.2: Why are house prices so high and mortgage rates so low?
Example 13.3: Finding the equilibrium price and quantity for a Stackelberg leader and follower
An Introduction to the Theory of Games
ECONOMIC NATURALIST 13.3: Why do so many firms offer price matching?
Advertising
ECONOMIC NATURALIST 13.4: Why did a ban on cigarette advertising help the cigarette companies?
Entry Deterrence and Sequential Games
ECONOMIC NATURALIST 13.5: Why might a company make an investment it knew it would never use?
ECONOMIC NATURALIST 13.6: Why would a firm build a factory with more capacity than it would ever need?
Competition When There Are Increasing Returns to Scale
ECONOMIC NATURALIST 13.7: Why is cutting price not the only way to oust rivals?
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
PART 4 Factor Markets
Chapter 14 Labour
Chapter Preview
The Perfectly Competitive Firm's Short-Run Demand for Labour
The Perfectly Competitive Firm's Long-Run Demand for Labour
The Market Demand Curve for Labour
An Imperfect Competitor's Demand for Labour
The Supply of Labour
Example 14.1: The labour supply curve for someone with a target level of income
ECONOMIC NATURALIST 14.1: Why is it so hard to find a taxi on rainy days?
Example 14.2: The optimal leisure demand for someone who views income and leisure as perfect complements
ECONOMIC NATURALIST 14.2: Why may it not make sense to tax the rich?
The Non-Economist's Reaction to the Labour Supply Model
The Market Supply Curve
Example 14.3: How do rising MBA enrolments affect the salaries and employment of economists in liberal arts schools?
Monopsony
Minimum Wage Laws
Labour Unions
Discrimination in the Labour Market
Statistical Discrimination
The Internal Wage Structure
Winner-Takes-All Markets
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Appendix 14: The Economics of Workplace Safety
Chapter 15 Capital
Chapter Preview
Financial Capital and Real Capital
The Demand for Real Capital
The Relationship between the Rental Rate and the Interest Rate
The Criterion for Buying a Capital Good
Interest Rate Determination
ECONOMIC NATURALIST 15.1: Why do we get bank runs?
Real versus Nominal Interest Rates
The Market for Stocks and Bonds
ECONOMIC NATURALIST 15.2: Why do we get stock market bubbles and crashes?
ECONOMIC NATURALIST 15.3: Why are some assets more prone to speculative bubbles than others?
ECONOMIC NATURALIST 15.4: Why is owning stock in a monopoly no better than owning stock in a perfectly competitive firm?
The Anomaly of the Investment Newsletter
Economic Rent
Peak-Load Pricing
Exhaustible Resources as Inputs in Production
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Appendix 15: A More Detailed Look at Exhaustible Resource Allocation
PART 5 Externalities, Public Goods and Welfare
Chapter 16 Externalities, Property Rights and the Coase Theorem
Chapter Preview
Externalities and Market Efficiency
The Reciprocal Nature of Externalities
Example 16.1: The confectioner and the doctor (I): making the confectioner liable for noise damage
Example 16.2: The confectioner and the doctor (II): changing costs and benefits
Example 16.3: The confectioner and the doctor (III): installing a soundproofing device
Example 16.4: The confectioner and the doctor (IV): should the doctor rearrange his office?
Example 16.5: The confectioner and the doctor (V): costly negotiation when the confectioner can make the least-cost adjustment
Example 16.6: The confectioner and the doctor (VI): costly negotiation when the doctor can make the least-cost adjustment
Application: External Effects from Nuclear Power Plants
Property Rights
ECONOMIC NATURALIST 16.1: Why does the law permit airlines to operate flights over private land without permission?
ECONOMIC NATURALIST 16.2: Why does the law of trespass not apply along waterfront property?
ECONOMIC NATURALIST 16.3: Why does the law of trespass not apply in the mountains?
ECONOMIC NATURALIST 16.4: Why are property laws often suspended during storms?
ECONOMIC NATURALIST 16.5: Why do building height limits vary from city to city?
The Tragedy of the Commons
Example 16.7: If village residents make their investment decisions independently, how many of their steers will graze on the commons?
Externalities, Efficiency and Free Speech
Smoking Rules, Public and Private
Example 16.8: Should smoker Smith live with non-smoker Jones, or find a separate apartment?
Positive Externalities
Positional Externalities
Taxing Externalities
Example 16.9: The confectioner and the doctor (VII): taxing the confectioner for noise
Example 16.10: What is the best way for the city council to reduce air pollution?
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Chapter 17 Government
Chapter Preview
Public Goods
ECONOMIC NATURALIST 17.1: Should it be free to visit the Natural History Museum?
Example 17.1: Should the network broadcast Jerry Springer or Masterpiece Theater?
Public Choice
ECONOMIC NATURALIST 17.2: How does a vote count in the EU?
ECONOMIC NATURALIST 17.3: Why does the minority prefer cost-benefit analysis?
Example 17.2: If two people, one rich and one poor, have opposite views on a proposed public project, on what basis would each like to see the decision made, cost-benefit analysis or majority rule?
Example 17.3: Which company will win the franchise to operate the rail system in South East England?
Income Distribution
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises
Index I1
Chapter 18W General Equilibrium and Market Efficiency (online)
Chapter Preview
A Simple Exchange Economy
ECONOMIC NATURALIST 18W.1: Why is it easier to buy fresh tomatoes in the UK than in Russia?
Efficiency in Production
Efficiency in Product Mix
Gains from International Trade
Example 18W.1: General equilibrium and market efficiency
Taxes in General Equilibrium
Other Sources of Inefficiency
ECONOMIC NATURALIST 18W.2: Why do the latest technology goods sell out so quickly?
Summary
Questions for Review
Problems
Answers to In-Chapter Exercises

System requirements

Save as PDF Copy link into clipboard

Schweitzer Fachinformationen

EBOOK: Microeconomics and Behaviour

Description

More details

Other editions

New editions

Content

System requirements