PART1 Introduction:Markets and Prices 1
第1部分 引言：市场与价格 1
第1章 绪论 3
1 Preliminaries 3
1.1 The Themes of Microeconomics 4
Theories and Models 5
Positive versus Normative Analysis 6
1.2 What Is a Market? 7
Market Price 8
Competitive versus Noncompetitive Markets 8
Market Definition-The Extent of a Market 9
List of Examples 10
Example 1.1 Markets for Prescription Drugs 10
1.3 Real versus Nominal Prices 11
Example 1.2 The Price of Eggs and the Price of a Collage Education 12
Example 1.3 The Minimum Wage 13
Corporate Decision Making:Ford s Sport Utility Vehicles 15
1.4 Why Study Microeconomics? 15
Public Policy Design:Automobile Emission Standards for the Twenty-first Century 16
Questions for Review 17
Summary 17
Exercises 18
2 The Basics of Supply and Demand 19
第2章 供给与需求的基本原理 19
The Supply Curve 20
2.1 Supply and Demand 20
The Demand Curve 21
2.2 The Market Mechanism 23
2.3 Changes in Market Equilibrium 24
Example 2.1 The Price of Eggs and the Price of a Collage Educa Revisited 26
Example 2.2 Wage Inequality in the United States 27
Example 2.3 The Long-Run Behavior of Natural Resource Prices 28
2.4 Elasticities of Supply and Demand 30
Example 2.4 The Market for Wheat 33
Demand 35
2.5 Short-Run Versus Long-Run Elasticities 35
Example 2.5 The Demand for Gasoline and Automobiles 39
Supply 40
Example 2.6 the Weather in Brazil and the Price of coffee in New York 41
2.6 Understanding and Predicting the Effects of Changing Market Conditions 44
Example 2.7 Declining Demand and the Behavior of copper Prices 47
Example 2.8 Upheaval in the World Oil Market 49
2.7 Effects of Government Intervention-Price Controls 53
Example 2.9 Price Controls and Natural Gas Shortages 54
Summary 55
questions for Review 56
Exercises 57
PART2 Producers,Consumers,and Competitive Markets 59
第2部分 生产者、消费者与竞争性市场 59
第3章 消费者行为 61
3 Consumer Behavior 61
Consumer Behavior 61
3.1 Consumer Preferences 62
Market Baskets 62
Some Basic Assumptions About Preferences 63
Indifference Curves 64
Indifference Maps 66
The Shapes of Indifference Curves 67
The Marginal Rate of Substitution 68
Perfect Substitutes and Perfect Complements 69
Example 3.1 Designing New Automobiles(Ⅰ) 71
The Budget Line 75
3.2 Budget Constraints 75
The Effects of Changes in Income and Prices 77
3.3 Consumer Choice 79
Example 3.2 Designing New Automobiles(Ⅱ) 81
Example 3.3 Decision Making and Public Policy 82
Corner Solutions 84
Example 3.4 A College Trust Fund 85
3.4 Revealed Preference 86
Example 3.5 Revealed Preference for Recreation 88
3.5 Marginal Utility and Consumer Choice 89
Example 3.6 Gasoline Rationing 91
3.6 Cost-of-Living Indexes 92
Ideal Cost-of-Living Index 93
Laspeyres Index 94
Paasche Index 95
Chain-Weighted Indexes 96
Example 3.7 The Bias in the CPI 97
Summary 98
Questions for Review 99
Exercises 99
4 Individual and Market Demand 101
第4章 个体需求与市场需求 101
The Individual Demand Curve 102
4.1 Individual Demand 102
Price Changes 102
Income Changes 104
Normal Versus Inferior Goods 106
Engel Curves 106
Example 4.1 Consumer Expenditures in the United States 108
Substitutes and Complements 109
4.2 Income and Substitution Effects 110
Substitution Effect 111
Income Effect 112
A Special Case:The Giffen Good 113
Example 4.2 The Effects of a Gasoline Tax 114
4.3 Market Demand 116
From Individual to Market Demand 116
Elasticity of Demand 117
Example 4.3 The Aggregate Demand for Wheat 120
Example 4.4 The Demand for Housing 122
Consumer Surplus and Demand 123
4.4 Consumer Surplus 123
Example 4.5 The Value of clean Air 125
The Bandwagon Effect 127
4.5 Network Externalities 127
The Snob Effect 129
Example 4.6 Network Externalities and the Demands for Computers and E-Mail 130
4.6 Empirical Estimation of Demand 131
Interview and Experimental Approaches to Demand Determination 131
The Statistical Approach to Demand Estimation 132
The Form of the Demand Relationship 133
Example 4.7 The Demand for Ready-to-Eat Cereal 134
Summary 135
Questions for Review 136
Exercises 136
Uiility Maximization 139
Appendix to chapter 4:Demand Theory-A Mathematical Treatment 139
The Method of Lagrange Multipliers 140
Marginal Rate of Substitution 141
The Equal Marginal Principle 141
Marginal Utility of Income 142
An Example 143
Duality in Consumer Theory 144
Income and Substitution Effects 145
Exercises 147
5 Choice Under Uncertainty 149
第5章 不确定条件下的选择 149
Probability 150
5.1 Describing Risk 150
Expected Value 150
Variability 151
Decision Making 153
Example 5.1 Deterring Crime 154
5.2 Preferences Toward Risk 155
Different Preferences Toward Risk 157
Example 5.2 Business Executives and the Choice of Risk 160
5.3 Reducing Risk 161
Diversification 161
Insurance 162
Example 5.3 The Value of Title Insurance When Buying a House 163
The Value of Information 164
Example 5.4 The Value of Information in the Dairy Industry 165
5.4 The Demand for Risky Assets 166
Risky and Riskless Assets 166
Assets 166
Asset Returns 167
The Trade-Off Between Risk and Return 168
The Investor s Choice Problem 169
Example 5.5 Investing in the Stock Market 173
Summary 174
Questions for Review 175
Exercises 175
第6章 生产 177
6 Production 177
The Production Function 178
6.1 The Technology of Production 178
6.2 Isoquatnts 179
Input Flexibility 180
The Short Run versus the Long Run 180
6.3 Production with One Variable Input(Labor) 181
Average and Marginal Products 182
The Slopes of the Product Curve 183
The Average Product of Labor Curve 184
The Law of Diminishing Marginal Returns 185
The Marginal Product of Labor Curve 185
Example 6.1 Malthus and the Food Crisis 187
Labor Productivity 188
Example 6.2 Labor Productivity and the Standard of Living 189
Diminishing Marginal Returns 191
6.4 Production with Two Variable Inputs 191
Substitution Among Inputs 192
Production Functions-Two Special Cases 194
Example 6.3 A Production Function for Wheat 196
6.5 Returns to Scale 197
Increasing Returns to Scale 198
Constant Returns to Scale 198
Describing Returns to Scale 198
Decreasing Returns to Scale 198
Example 6.4 Returns to Scale in the Carpet Industry 199
Summary 201
Questions for Review 201
Exercises 202
第7章 生产成本 203
7 The Cost of Production 203
7.1 Measuring Cost:Which Costs Matter? 203
Opportunity Cost 204
Economic Cost versus Accounting Cost 204
Sunk Costs 205
Example 7.1 Choosing the Location for a New Law School Building 205
Fixed Costs and Variable Costs 206
Example 7.2 Sunk,Fixed,and Variable Costs:Computers,Software,and Pizzas 207
Fixed versus Sunk Costs 207
7.2 Cost in the Short Run 208
The Determinants of Short-Run Cost 210
The Shapes of the Cost Curves 211
Example 7.3 The Short-Run Cost of Aluminum Smelting 213
The User Cost of Capital 215
7.3 Cost in the Long Run 215
The Cost-Minimizing Input Choice 216
The Isocost Ling 217
Choosing Inputs 218
Example 7.4 The Effect of Effluent Fees on Input Choices 220
The Expansion Path and Long-Run Costs 222
Cost Minimization with Varying Output Levels 222
The Inflexibility of Short-Run Production 224
7.4 Long-Run versus Short-Run Cost Curves 224
Long-Run Average Cost 225
The Relationship Between Short-Run and Long-Run Cost 227
Economies and Diseconomies of Scale 227
7.5 Production with Two Outputs-Economies of Scope 229
Product Transformation Curves 230
The Degree of Economies of Scope 231
Economies and Diseconomies of Scope 231
Example 7.5 Economies of Scope in the Trucking Industry 232
7.6 Dynamic Changes in Costs-The Learning Curve 232
Graphing the Learning Curve 234
Learning versus Economies of Scale 234
Example 7.6 The Learning Curve in Practice 236
7.7 Estimating and Predicting Cost 237
Cost Functions and the Measurement of Scale Economies 239
Example 7.7 Cost Functions for Electric Power 240
Example 7.8 A Cost Function for the Savings and Loan Industry 241
Summary 242
Questions for Review 243
Exercises 243
Appendix to Chapter 7:Production and Cost Theory-A Mathematical Treatment 246
Cost Minimization 246
Marginal Rate of Technical Substitution 247
Duality in Production and Cost Theory 248
The Cobb-Douglas Cost and Production Functions 248
Exercises 250
第8章 利润最大化与竞争性供给 251
8 Profit Maximization and Competitive Supply 251
8.1 Perfectly Competitive Markets 252
When Is a Market Highly Competitive? 253
Do Firms Maximize Profit? 254
8.2 Profit Maximization 254
8.3 Marginal Revenue,Marginal Cost,and Profit Maximization 255
Demand and Marginal Revenue for a Competitive Firm 256
Profit Maximization by a Competitive Firm 257
Short-Run Profit Maximization by a Competitive Firm 258
8.4 Choosing Output in the Short Run 258
The Short-Run Profit of a Competitive Firm 259
Example 8.1 The Short-Run Output Decision of an Aluminum Smelting Plant 260
Example 8.2 Some Cost Considerations for Managers 261
8.5 The Competitive Firm s Short-Run Supply Curve 263
The Firm s Response to an Input Price Change 264
Example 8.3 The Short-Run Production of Petroleum Products 265
Elasticity of Market Supply 266
8.6 The Short-Run Market Supply Curve 266
Example 8.4 The Short-Run World Supply of Copper 268
Producer Surplus in the Short Run 269
Long-Run Profit Maximization 271
8.7 Choosing Output in the Long Run 271
Long-Run Competitive Equilibrium 272
Economic Rent 275
Producer Surplus in the Long Run 276
8.8 The Industry s Long-Run Supply Curve 277
Constant-Cost Industry 277
Increasing-Cost Industry 279
Decreasing-Cost Industry 280
The Effects of a Tax 280
Long-Run Elasticity of Supply 281
Example 8.5 The Long-Run Supply of Housing 282
Summary 283
Questions for Review 284
Exercises 284
9 The Analysis of Competitive Markets 287
第9章 竞争性市场分析 287
Review of Consumer and Producer Surplus 288
9.1 Evaluating the Gains and Losses form Government Policies-Consumer and Producer Surplus 288
Application of Consumer and Producer Surplus 289
Example 9.1 Price Controls and Natural Gas Shortages 292
9.2 The Efficiency of a Competitive Market 294
Example 9.2 The Market for Human Kidneys 295
9.3 Minimun Prices 298
Example 9.3 Airline Regulation 300
9.4 Price Supports and Production Quotas 302
Price Supports 302
Production Quotas 304
Example 9.4 Supporting the Price of Wheat 306
9.5 Import Quotas and Tariffs 309
Example 9.5 The Sugar Quota 312
9.6 The Impact of a Tax or Subsidy 313
The Effects of a Subsidy 317
Example 9.6 A Tax on Gasoline 318
Summary 320
Questions for Review 320
Exercises 321
PART3 Market Structure and Competitive Strategy 325
第3部分 市场结构与竞争策略 325
第10章 市场热力：卖方垄断与买方垄断 327
10 Markey Power:Monopoly and Monopsony 327
10.1 Monopoly 328
Average Revenue and Marginal Revenue 328
The Monopolist s Output Decision 329
An Example 331
A Rule of Thumb for Pricing 333
Example 10.1 Astra-Merck Prices Prilosec 334
Shifts in Demand 335
The Effect of a Tax 335
The Multiplant Firm 337
10.2 Monopoly Power 339
Measuring Monopoly Power 340
The Rule of Thumb for Pricing 341
Example 10.2 Markup Pricing:Supermarkets to Designer Jeans 342
Example 10.3 The Pricing of Prerecorded Videocassettes 343
10.3 Sources of Monopoly Power 345
The Number of Firms 345
The Elasticity of Market Demand 345
The Interaction Among Firms 346
10.4 The Social Costs of Monopoly Power 347
Price Regulation 348
Rent Seeking 348
Natural Monopoly 350
Regulations in Practice 351
10.5 Monopsony 352
Monopsony and Monopoly Compared 354
10.6 Monopsony Power 355
Sources of Monopsony Power 356
The Social Costs of Monopsony Power 357
Example 10.4 Monopsony Power in U.S.Manufacturing 358
Bilateral Monopoly 358
10.7 Limiting Market Power:The Antitrust Laws 359
Enforcement of the Antitrust Laws 361
Example 10.5 A Phone Call About Prices 362
Example 10.6 The United States versus Microsoft 363
Summary 364
Questions for Review 365
Exercises 365
11 Pricing with Market Power 369
第11章 有市场势力条件下的定价 369
11.1 Capturing Consumer Surplus 370
First-Degree Price Discrimination 371
11.2 Price Discriminaton 371
Second-Degree Price Discrimination 374
Third-Degree Price Discrimination 375
Example 11.1 The Economics of Coupons and Rebates 379
Example 11.2 Airline Fares 380
11.3 Intertemporal Price Discrimination and Peak-Load Pricing 382
Intertemporal Price Discrimination 382
Peak-Load Pricing 383
Example 11.3 How to Price a Best-Selling Novel 384
11.4 The Two-Part Tariff 385
Example 11.4 Polaroid Cameras 389
Example 11.5 Pricing Cellular Phone Service 390
11.5 Bundling 392
Relative Valuations 393
Mixed Bundling 397
Bundling in Practice 399
Example 11.6 The Complete Dinner versus a la Carte:A Restaurant s Pricing Problem 401
Tying 402
11.6 Advertising 403
A Rule of Thumb for Advertising 405
Example 11.7 Advertising in Practice 406
Summary 407
Exercises 408
Questions for Review 408
Transfer Pricing When There Is No Outside Market 413
Appendix to Chapter 11:Transfer Pricing in the Integrated Firm 413
Transfer Pricing with a Competitive Outside Market 415
Transfer Pricing with a Noncompetitive Outside Market 417
A Numerical Example 420
Exercises 421
第12章 垄断竞争与寡头 423
12 Monopolistic Competition and Oligopoly 423
12.1 Monopolistic Competition 424
The Makings of Monopolistic Competition 424
Equilibrium in the Short Run and the Long Run 425
Monopolistic Competition and Economic Efficiency 426
Example 12.1 Monopolistic Competition in the Markets for Colas and Coffee 428
12.2 Oligopoly 429
Equilibrium in an Oligopolistic Market 430
The Cournot Model 431
The Linear Demand Curve-An Example 433
First Mover Advantage-The Stackelberg Model 436
Price Competition with Homogeneous Products-The Bertrand Model 437
12.3 Price Competition 437
Price Competition with Differentiated Products 438
Example 12.2 A Pricing Problem for Procter Gamble 440
12.4 Competition Versus Collusion:The Prisoners Dilemma 442
Example 12.3 Procter Gamble in a Prisoners Dilemma 444
12.5 Implications of the Prisoners Dilemma for Oligopolistic Pricing 445
Price Rigidity 446
Price Signaling and Price Leadership 447
Example 12.4 Price Leadership and Price Rigidity in Commercial Banking 448
The Dominant Firm Model 450
12.6 Cartels 451
Analysis of Cartel Pricing 452
Example 12.5 The Cartelization of Intercollegiate Athletics 455
Example 12.6 The Milk Cartel 456
Summary 456
Exercises 457
Questions for Review 457
13.1 Gaming and Strategic Decisions 461
第13章 博弈论与竞争策略 461
13 Game Theory and Competitive Strategy 461
Noncooperative versus Cooperative Games 462
Example 13.1 Acquiring a Company 463
13.2 Dominant Strategies 464
13.3 The Nash Equilibrium Revisited 466
Maximin Strategies 468
Mixed Strategies 470
13.4 Repeated Games 472
Example 13.2 Oligopolistic Cooperation in the Water Meter Industry 474
Example 13.3 Competition and Collusion in the Airline Industry 475
13.5 Sequential Games 476
The Extensive Form of a Game 477
The Advantage of Moving First 478
13.6 Threats,Commitments,and Credibility 479
Commitment and Credibility 480
Empty Threats 480
Example 13.4 Wal-Mart Stores Preemptive Investment Strategy 482
13.7 Entry Deterrence 483
Strategic Trand Policy and International Competition 485
Example 13.5 Dupont Deters Entry in the Titanium Dioxide Industry 487
Example 13.6 Diaper Wars 488
13.8 Bargaining Strategy 489
13.9 Auctions 491
Auction Formats 491
Valuation and Information 492
Private -Value Auctions 492
Common-Value Auctions 494
Maximizing Auction Revenue 495
Example 13.7 Internet Auctions 495
Summary 496
Questions for Review 497
Exercises 498
第14章 要素市场 501
14.1 Competitive Factor Markets 501
14 Markets for Factor Inputs 501
Demand for a Factor Input When Only One Input Is Variable 502
Demand for a Factor Input When Several Inputs Are Variable 505
The Market Demand Curve 506
Example 14.1 The Demand for Jet Fuel 508
The Supply of Inputs to a Firm 509
The Market Supply of Inputs 511
Example 14.2 Labor Supply for One-and Two-Earner Households 513
4.2 Equilibrium in a Competitive Factor Market 514
Economic Rent 515
Example 14.3 Pay in the Military 517
14.3 Factor Markets with Monopsony Power 518
Marginal and Average Expenditure 519
Example 14.4 Monopsony Power in the Market for Baseball Players 520
The Input Purchasing Decision of the Firm 520
Example 14.5 Teenage Labor Markets and the Minimum Wage 521
Monopoly Power over the Wage Rate 523
14.4 Factor Markets with Monopoly Power 523
Unionized and Nonunionized Workers 524
Bilateral Monopoly in the Labor Market 525
Example 14.6 The Decline of Private-Sector Unionism 527
Example 14.7 Wage Inequality-Have Computers Changed the Labor Market? 528
Summary 529
Exercises 530
Questions for Review 530
第15章 投资、时间与资本市场 533
15 Investment,Time,and Capital Markets 533
15.1 Stocks versus Flows 534
15.2 Present Discounted Value 534
Valuing Payment Streams 535
Example 15.1 The Value of Lost Earnings 537
15.3 The Value of a Bond 538
Perpetuities 538
The Effective Yield on a Bond 539
Example 15.2 The Yields on Corporate Bonds 541
15.4 The Net Present Value Criterion for Capital Investment Decisions 542
The Electric Motor Factory 543
Real versus Nominal Discount Rates 543
Negative Future Cash Flows 545
15.5 Adjustments for Risk 545
Diversifiable versus Nondiversifiable Risk 546
The Capital Asset Pricing Model 547
Example 15.3 Capital Investment in the Disposable Diaper Industry 548
15.6 Investment Decisions by Consumers 549
Example 15.4 Choosing and Air Conditioner and a New Car 550
15.7 Intertemporal Production Decisions-Depletable Resources 551
The Production Decision of an Individual Resource Producer 552
The Behavior of Market Price 553
User Cost 553
Resource Production by a Monopolist 554
Example 15.5 How Depletable Are Depletable Resources? 554
15.8 How Are Interest Rates Determined? 555
A Variety of Interest Rates 557
Questions for Review 558
Summary 558
Exercises 559
PART4 Information,Market Failure,and the Role of Government 561
第4部分 信息、市场失灵与政府的角色 561
第16章 一般均衡与经济效率 563
16.1 General Equilibrium Analysis 563
16 General Equilibrium and Economic Efficiency 563
Two Interdependent Markets-Moving to General Equilibrium 564
The Attainment of General Equilibrium 565
Example 16.1 The Interdependence of International Markets 566
16.2 Efficiency in Exchange 567
The Advantages of Trade 568
The Edgeworth Box Diagram 569
Efficient Allocations 570
The Contract Curve 571
Consumer Equilibrium in a Competitive Market 572
The Economic Efficiency of Competitive Markets 574
16.3 Equity and Efficiency 575
The Utility Possibilities Frontier 575
Equity and Perfect Competition 577
16.4 Efficiency in Production 578
Production in the Edgeworth Box 578
Input Efficiency 579
Producer Equilibrium in a Competitive Input Market 580
The Production Possibilities Frontier 581
Output Efficiency 583
Efficiency in Output Markets 584
16.5 The Gains from Free Trade 585
Comparative Advantage 585
An Expanded Production Possibilities Frontier 587
Example 16.2 The Effects of Automobile Import Quotas 588
Example 16.3 The Costs and Benefits of Special Protection 589
16.6 An Overview-The Efficiency of Competitve Markets 590
16.7 Why Markets Fail 591
Market Power 592
Incomplete Information 592
Externalities 592
Summary 593
Public Goods 593
Exercises 594
Questions for Review 594
17 Markets with Asymmetric Information 595
第17章 不对称信息条件的市场 595
17.1 Quality Uncertainty and the Market for Lemons 596
The Market for Used Cars 596
Implications of Asymmetric Information 598
The Importance of Reputation and Standardization 599
Example 17.1 Lemons in Major League Baseball 600
17.2 Market signaling 601
A Simple Model of Job Market Signaling 602
Guarantees and Warranties 604
Example 17.2 Working into the Night 605
17.3 Moral Hazard 606
Example 17.4 Crisis in the Savings and Loan Industry 608
Example 17.3 Reducing Moral Hazard-Warranties of Animal Health 608
17.4 The Principal-Agent Problem 609
The Principal-Agent Problem in Private Enterprises 610
The Principal-Agent Problem in Pubilic Enterprises 610
Example 17.5 Managers of Nonprofit Hospitals as Agents 611
Incentives in the Principal-Agent Framework 612
17.5 Managerial Incentives in an Integrated Firm 613
Asymmetric Information and Incentive Design in the Integrated Firm 614
Applications 616
17.6 Asymmetric Information in Labor Markets:Efficiency Wage Theory 616
Example 17.6 Efficiency Wages at Ford Motot Company 618
Exercises 619
Summary 619
Questions for Review 619
18.1 Externalities 621
第18章 外部性与公共品 621
18 Externalities and Public Goods 621
Negative Externalities and Inefficiency 622
Positive Externalities and Inefficiency 623
18.2 Ways of Correcting Market Failure 625
An Emissions Standard 626
An Emissions Fee 626
Standards Versus Fees 627
Transferable Emissions Permits 630
Example 18.1 The Costs and Benefits of Reduced Sulfur Dioxide Emissions 631
Example 18.2 Emissions Trading and Clean Air 632
Recycling 634
Example 18.3 Regulating Municipal Solid Wastes 637
18.3 Externalities and Property Rights 638
Property Rights 638
Bargaining and Economic Efficiency 638
Costly Bargaining-The Role of Strategic Behavior 640
A Legal Solution-Suing for Damages 640
Example 18.4 The Coase Theorem at Work 641
18.4 Common Property Resources 642
Example 18.5 Crawfish Fishing in Louisiana 643
18.5 Public Goods 644
Efficiency and Public Goods 646
Example 18.6 The Demand for Clear Air 647
Public Goods and Market Failure 647
18.6 Private Preferences for Public Goods 649
Summary 651
Questions for Review 651
Exercises 652
The Basics of Regression 655
An Example 655
附录：回归分析的基本知识 655
Estimation 656
Statistical Tests 657
Goodness of Fit 659
Economic Forecasting 660
Example A.1 The Demand for Coal 661
Glossary 663
术语表 663
Answers to Selected Exercises 675
部分习题答案 675
Index 687
索引 687